Within Labor, VETS has primary responsibility for helping the nation’s  veterans find employment. Labor and States Acted to Implement Program Reforms, but Accountability Challenges Remain

Labor and states have taken action to implement most JVA provisions to  reform veterans’ services since the law was enacted in November 2002, but  challenges remain particularly in implementing reforms to improve  accountability for the DVOP and LVER programs. However, Labor reports that states will not  be held accountable to a common national standard for veterans’  employment until 2007. States also report good progress in  implementing provisions, but challenges remain in some local areas in  terms of integrating veterans’ staff with other employment services staff in  local workforce centers. Staff Roles and Responsibilities

VETS took several steps to prepare veterans’ staff for their new roles and  responsibilities under the law, and while the majority of state workforce  administrators reported that these staff had transitioned to a greater focus  on intensive services for veterans and employer outreach as required by  JVA, challenges remained in the areas of training and integrating staff in  some one-stop offices. Incentive Awards Program

VETS issued guidance in time to establish an incentive program in the first  fiscal year after JVA, and 32 of the 50 state workforce administrators we  surveyed reported implementing the program. California, for example, cited that state law prohibited monetary or other  gifts to employees for performing their duties. Performance Accountability

Labor has taken action to establish a new accountability system as  required by JVA, but reports that more time is needed under the new  system before it can hold all states accountable to the same standard for  veterans’ employment. State Officials Reported that JVA Reforms Improved Veterans’ Services and Employment Outcomes

While data are not available to link the JVA reforms to changes in veterans’  services and employment outcomes, most state workforce administrators  we surveyed believed that the reforms have improved the quality of  services to veterans, and have improved their employment outcomes. 1.) These respondents attributed the  improvement both to the law’s reforms and to other factors. Other than the reforms themselves, administrators said  veterans’ employment was influenced by employer willingness or desire to  hire veterans and by the strength of the local job market. 2.) 3.) Program Accountability Weakened by Absence of Local Data and Lack of Coordinated Oversight

Labor oversight and accountability for the DVOP and LVER programs has  been affected by the lack of data available from local workforce offices in  some states, as well as the lack of coordination among Labor agencies in  monitoring and sharing information gathered on program performance. Labor also lacks a strategy for using the monitoring information it gathers  to improve performance across states and local areas. Veterans’ Employment and Training: Services Provided by Labor  Department Programs.
Why GAO Did This Study

The number of service members leaving active duty is likely to increase by 200,000 yearly, according to the Department of Labor. To improve employment and training services for veterans and to encourage employers to hire them, Congress passed the Jobs for Veterans Act in 2002, which reformed Labor's Disabled Veterans' Outreach Program (DVOP) and Local Veterans' Employment Representative (LVER) program. This testimony summarizes GAO's recent review of progress implementing the act, including the development of new staff roles and responsibilities, incentive awards, and performance accountability system. GAO examined (1) actions taken to improve performance and accountability since the law's enactment and any associated challenges, (2) whether available data indicate that such action has resulted in improved employment outcomes for veterans, and (3) factors affecting program oversight an accountability.

What GAO Found

Labor implemented most reforms under the Jobs for Veterans' Act (JVA) to improve the DVOP and LVER programs within the first 2 years of its enactment. However, it has not yet fully implemented measures to improve state accountability for these programs. Specifically, Labor reports that states will not be held accountable to the same standard for veterans' employment until 2007. States also report substantial progress implementing the law, but integrating veterans' staff with other one-stop staff remains challenging in some local areas. In addition, about one-third of the states did not establish incentive programs for their workforce personnel because state laws, policies, or agreements conflict with this JVA provision. Most state workforce administrators surveyed reported that the new legislation has improved both the quality of services to veterans and their employment outcomes. For example, they reported that services provided to disabled veterans have improved. They also credited the greater availability of case management and outreach to new employers for much of the improvement in employment outcomes under JVA. Aside from the law's influence, state administrators cited the willingness of employers to hire veterans and the strength of the local job market as significant factors affecting veterans' employment. About half of state directors of Veterans' Employment and Training reported their new monitoring role had strengthened local program accountability. However, just over a third reported that accountability had either lessened or not improved. Some partly attributed this to absence of local performance data and fewer annual visits to one-stop centers. GAO found, as well, that a lack of coordination among Labor's agencies responsible for certain JVA provisions has weakened accountability. Also, while Labor has developed a system to monitor program performance, it lacks a strategy for using the information it gathers to make improvements and to help states.