VETS provides states with grants for DVOP and LVER staff to provide veterans and eligible persons employment and training opportunities, with priority given to the needs of disabled veterans and veterans of the Vietnam era, through the states’ employment service systems established under the Wagner-Peyser Act. National Funding Trend for DVOP and LVER Grants

Over a 10-year period, appropriations for VETS, adjusted for inflation, have declined 11 percent. 1.) Process Used to Allocate DVOP and LVER Funds to States

States receive DVOP and LVER funding from VETS through multiyear grants, generally for a period of 2 to 5 years. When appropriations for the DVOP and LVER grants do not support the number of statutorily authorized positions, each state’s share of the appropriation is calculated on the basis of a proportionate reduction. 6 and 7.) Performance Measurements for DVOP and LVER Staffing Grants

Performance standards for the DVOP and LVER grants are measured in terms of providing a higher level of service and achieving better results for veterans than is achieved by a state’s employment service system for its nonveteran applicants. In recent testimony, we criticized VETS’ current performance standards because they focus more on process than on results and noted that performance is evaluated only in relative, not absolute, terms. VETS would like to put greater emphasis on results, but VETS is uncertain whether it will develop measures based on absolute levels of service to veterans. DVOP and LVER Position Requirements

Federal eligibility requirements for appointing LVER and DVOP staff are based on veteran status. 9.) Nearly all LVER staff were veterans (94 percent), and 62 percent were disabled veterans. 11.) 12.) 13.) 14.) Few Activities Predominate

According to our survey, the two duties that both DVOP and LVER staff spent the most time on were (1) job search and referral and (2) intake and assessment. The DVOP and LVER staff also reported that they needed more time for employer outreach and individual case management. Additionally, although the law specifies that DVOP specialists provide assistance to veterans exclusively and VETS’ policy requires that LVER staff (except for half-time LVER staff) serve veterans exclusively, DVOP and LVER staff—about 8 percent of the sampled respondents—noted that they were required to provide employment services to nonveterans. We obtained information such as the salaries for DVOP and LVER staff, state qualification requirements for DVOP and LVER staff, state compliance with VETS performance standards, and state implementation of the memorandum of understanding between VETS and the Vocational Rehabilitation and Counseling Program (VR&C). To obtain information about the characteristics of DVOP and LVER staff and how they spend their time, we surveyed all DVOP and LVER staff. DVOP and LVER Authorized and Funded Positions, Fiscal Years 1990-97

Statutory Formula for DVOP Specialist Positions and Statutory Positions for Fiscal Year 1997

To determine the number of DVOP specialists authorized for each state, a sum is taken of (1) the number of veterans residing in a state who are Vietnam- and post-Vietnam-era veterans and (2) the state’s number of disabled veterans—those veterans residing in a state who are receiving either Department of Veterans Affairs (VA) compensation or military disability compensation through either a medical discharge or retirement. Minnesota had 31 LVER positions as of January 1, 1987.
Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on the use of two grant funds, the Disabled Veterans' Outreach Program (DVOP) and the Local Veterans' Employment Representative (LVER), administered by the Department of Labor Veterans' Employment and Training Service (VETS), focusing on: (1) national funding trends for DVOP and LVER staff and how funds are allocated to the states; (2) how state performance is measured; (3) position requirements for DVOP and LVER staff and characteristics of DVOP and LVER staff; and (4) how DVOP and LVER staff spend their time and integrate their services with other veterans' employment service programs, such as the Vocational Rehabilitation and Counseling Program (VR&C) and the Transition Assistance Program (TAP) for separating service members.

What GAO Found

GAO noted that: (1) over a 10-year period, the appropriations for VETS, when adjusted for inflation, have declined by 11 percent; (2) since 1990, appropriations for the DVOP and LVER grants have not supported the number of positions authorized by the statutory funding formulas; (3) states receive their DVOP and LVER grant funding from VETS through multiyear grants, and funding is estimated by figuring the amount required to support the number of statutorily determined staff positions; (4) in allocating DVOP positions to states, the statutory formula provides one DVOP specialist for each 6,900 veterans in a state who are either Vietnam-era, post-Vietnam era, or disabled veterans; (5) the statutory LVER funding provides for a total of 1,600 full-time LVER staff, and allocation is primarily based on the number of LVER staff as of January 1, 1987, in each state; (6) when appropriations are not sufficient to support the number of positions authorized, VETS reduces each state's allocation proportionately; (7) VETS' performance measures for states' DVOP and LVER staffing grants focus more on process than results and require states to provide a higher level of service to veterans than nonveterans rather than establish goals for absolute levels of performance; (8) VETS is working to develop new performance measures under the Government Performance and Results Act of 1993 that will put greater emphasis on results, in addition to comparing services provided to veterans and nonveterans; (9) VETS is uncertain whether it will establish absolute levels for its performance measures; (10) federal law prescribes eligibility requirements for appointing LVER staff and DVOP specialists based on veteran status; (11) 95 percent of DVOP specialists and 62 percent of LVER staff were disabled veterans; (12) beyond veteran status, DVOP and LVER staff qualifications, including educational requirements, differ according to each state's civil service system requirement; (13) the law prescribes various duties for DVOP and LVER staff to provide veterans with job search plans and referrals and job training opportunities; (14) the duties both DVOP and LVER staff spent the most time on were job search and referral and intake and assessment; and (15) DVOP and LVER staff reported that they would like to spend more time performing job search and referral as well as employer outreach and individual case management.