The  program is also designed to foster economic self-sufficiency by assisting  older workers in transitioning to unsubsidized employment. The program is administered through  grants awarded to national organizations as well as state and territorial  agencies. OAA Amendments Have Had Minimal Impact on Funding Distribution between National and State Grantees

The OAA Amendments have had little effect on the distribution of funds  between national and state grantees, with the national grantees continuing  to receive approximately 78 percent of the funding and state grantees  about 22 percent. However, the distribution of funding and positions among  national grantees has changed substantially. 2002 Competition Reshuffled Funds and Positions among National Grantees

Labor’s 2002 open competition for the national grants portion of SCSEP  funding increased the number of national grantees administering SCSEP  and substantially reshuffled positions and funding among existing  grantees. Labor Has Yet to Fully Implement an Enhanced Performance Accountability System

Labor has taken steps to establish an enhanced performance  accountability system for SCSEP, but has yet to implement some features  fully. While Labor has introduced the new performance measures that the  OAA amendments required, program year 2005—which ends on June 30,  2006—is the first year for which grantees will be held accountable for their  performance. Labor has also implemented an early version of a data  collection system to capture performance information, but the final  version is not yet available to grantees in its intended online format. SCSEP Eligibility and Coordination with WIA Are among the Major Challenges Grantees Face

Changes to SCSEP eligibility criteria and coordination difficulties with  WIA and the one-stop system pose major challenges to SCSEP grantees in  managing the program. Although the OAA Amendments did not contain  provisions changing the eligibility criteria for SCSEP, Labor modified  some eligibility criteria to target SCSEP’s limited funds to individuals it  believes are most in need of SCSEP’s intensive services. Furthermore, the majority of the 13 national and 52 state  grantees surveyed also identified coordinating with WIA providers,  obtaining intensive and training services at one-stop centers, implementing  Labor’s new data collection system, and meeting new performance  measures as being major challenges to managing the SCSEP program. Concluding Observations

The aging of the baby boom generation presents serious challenges for the  nation’s workforce investment system. Older adults often have difficulty re-entering the labor force and  may rely on federal employment and training programs to help them find  employment, with SCSEP being the only federal employment and training  program targeted exclusively to low-income older adults. These figures were provided by the Department of Labor and are included  in this testimony for contextual purposes only. Redefining Retirement: Options for Older Americans.
Why GAO Did This Study

The aging of the baby boom generation and increased life expectancy pose serious challenges for our nation. Older adults often must re-enter the workforce in order to remain self-sufficient. The Senior Community Service Employment Program (SCSEP) is the only federal program that is specifically designed to assist low-income older adults by providing part-time community service jobs and training to prepare for employment. Since passage of the 2000 Older Americans Act Amendments (OAA), SCSEP has also increasingly focused on promoting economic self-sufficiency through placement in unsubsidized employment. In 2005, Congress appropriated about $439 million to serve about 100,000 older workers. Administered by the Department of Labor (Labor), SCSEP is implemented through 69 grantees, including 13 national organizations and 56 state and territorial agencies. The Chairman of the Senate Special Committee on Aging asked GAO to (1) determine what effect the OAA Amendments have had on the distribution of SCSEP funds to national and state grantees, (2) describe the progress Labor has made in implementing the enhanced performance accountability system, and (3) identify the challenges faced by national and state grantees in managing the SCSEP program.

What GAO Found

The 2000 OAA Amendments have had little impact on the distribution of funds between national and state grantees, with national grantees continuing to receive approximately 78 percent of the funding and states about 22 percent. However, the distribution of funding among national grantees has changed substantially as a result of Labor's 2002 open competition for the national grants portion of SCSEP funding. Labor has taken steps to establish an enhanced performance accountability system for SCSEP, but has yet to implement some features. For example, Labor introduced the new performance measures required by the OAA Amendments, but program year 2005--which ends on June 30, 2006--is the first year that grantees will be held accountable for meeting their goals. Labor has implemented an early version of a data collection system to track grantee performance, but the final Internet-based version is not yet available. Changes to the SCSEP eligibility criteria and difficulties coordinating with the Workforce Investment Act (WIA) one-stop system have posed challenges to SCSEP grantees. Labor modified some eligibility criteria to target limited program funds to individuals it believes are most in need of SCSEP services. However, grantees expressed concern that these changes had made it more difficult for them to meet their enrollment goals. Finally, GAO found that despite provisions in the OAA Amendments to strengthen connections between SCSEP and WIA, problems persist in coordinating with WIA providers and obtaining intensive and training services for older workers at one-stop centers.