The Future of SCSEP

National sponors propose SCSEP principles

The 13 national sponsors offer guiding principles for refining SCSEP under the Older Americans Act.

Principles

1. Target services to older persons with the greatest economic and social need—including those from minority, rural, and urban hard-to-serve communities—by keeping the current age and income eligibility requirements.

The Census forecasts that by 2008 there will be 6.7 million persons aged 55 or over below poverty, a 22% increase from 5.5 million in 2000. To respond to this projected increase in the SCSEP-eligible population, SCSEP should continue to focus on serving those seniors who are most-in-need and are not job-ready. Also, WIA and One Stops will need to boost their capacity exponentially to serve older workers of all income, education, and skill levels in order to meet employer demands.

2. Maintain the community service employment aspect of the program, in addition to promoting economic self-sufficiency among participating seniors.

From its inception, USDOL has achieved SCSEP's legislated purposes by allocating all SCSEP funding through an equitable distribution of authorized positions to nearly every county in the nation. SCSEP's structure of authorized positions not only ensures enrollment of nearly 100,000 participants each year by SCSEP grantees—it also guarantees a supply of workers to many local "host" agencies (like Meals on Wheels, caregiver networks, etc.) that would otherwise be unable to provide critical community services. Last year, SCSEP participants worked 46 million person-hours in community and faith-based organizations while they earned income and learned new skills and self-confidence before being placed into unsubsidized jobs. Eliminating SCSEP's structure of authorized positions would be detrimental to both needy seniors and thousands of local social service agencies.

3. Maximize expenditures on participant wages and benefits and minimize administrative costs by retaining current policy on program budgets.

SCSEP grantees have operated an efficient and effective program with administrative costs capped at 15% (most are 13.5% or less). Requiring that 75% of all SCSEP funds be spent on participant wages and benefits has not deterred grantees from achieving all legislated SCSEP goals, including preparing SCSEP participants for unsubsidized jobs and providing community services in demand. To increase intensive training opportunities for SCSEP participants, the Department should consider revising the 502(e) program (see below). Also, the Department may want to address existing disincentives in WIA that dissuade One Stops from providing intensive services to workers seeking part-time employment, which include many SCSEP participants and other older workers.

4. Support best practice and avoid further disruption in the program by continuing to fund both national and state/territorial grants to operate SCSEP.

The network of national and state SCSEP grantees have demonstrated their effectiveness in preparing large numbers of older workers for the labor force. All grantees have sought to minimize potential disruption to the program from the combined impact of a delayed issuance of the Final Rules for SCSEP until 2004, the PY2003 SCSEP national grant competition, and the extended process to develop a new SCSEP data collection system (which is not yet completed). Since 2004, states have assumed a stronger role and led a more inclusive SCSEP planning process involving national and state grantees. National grantees have worked with states and each other to promote continuous improvement, including linking with national corporations and associations and serving minority seniors and others most in need. Collaboration between state and national grantees has led to significantly improved equitable distribution of positions in every state. Another major restructuring of the SCSEP national grantees could undermine the core of the nation's only network of organizations with proven experience and a track record of serving older workers, especially the needy. In addition, the role of faith-based and community-based organizations in SCSEP could be reduced.

5. Strengthen the role of the Administration on Aging in SCSEP.

Research on productive aging, civic engagement, and older workers has intensified even since the previous reauthorization. The Older Americans Act currently requires coordination between SCSEP and the Administration on Aging (AoA), including its network of state and local area agencies on aging. Stronger linkages could promote research-based best practice for SCSEP and all of the Department's programs committed to improving services to older workers. In addition, many of the programs delivered through the AoA network (such as senior centers, nutrition programs, transportation, companion and outreach services, elder abuse prevention, etc.) already rely on SCSEP participants to deliver services.

Possible Refinements

1. Amend section 502(e) to increase and diversify intensive training opportunities for SCSEP participants.

Current law effectively discourages use of 502(e) funds to support classroom or any other type of training except on-the-job training, since 75% of all 502(e) funds must be spent on participant wages and benefits. Removing this requirement and making additional refinements to 502(e) would permit other types of training (such as development and delivery of online training) and increased participation by a wider range of training providers to serve SCSEP participants.

2. Set grantee performance goals that take into account all SCSEP performance measures required by the Older Americans Act.

Unlike WIA, the Older Americans Act requires SCSEP to target services to the most-in-need and employ participating seniors (who are not job-ready) to provide community services through host agencies. SCSEP grantees should be held accountable for achieving unsubsidized placement rates (and other related goals) in proper balance with achieving SCSEP's other legislated goals, specifically service level to most-in-need and community services provided.

3. Streamline performance data collection.

The SCSEP data collection system, which has not yet been finalized, currently requires collecting data not directly related to either program performance or common measures. It is recommended that the Department work directly with SCSEP grantees to complete the design and implementation of a robust system that supports a broad range of users, including agencies with limited staff and limited capacity in information technology.

4. Provide sufficient funds to respond to the projected increase in SCSEP-eligible persons.

As stated earlier, the Census Bureau projects an increase in the number of older persons who will be eligible for SCSEP over the next decade. It is recommended that the Department support an increase in total SCSEP appropriations in order to respond to the growing numbers of older poor as well as allow for an increase in the SCSEP unit cost (especially since many states have increased their minimum wage above the federal).

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