The Future of SCSEP

DOL's proposed changes for SCSEP

The Department of Labor recently released its proposal for restructing SCSEP. Mason Bishop, deputy assistant secretary of labor, briefed representatives of the 13 national grantees and the National Association of State Units on Aging on February 24. Here is a summary.

Refocus the purpose of SCSEP.

  1. Streamline SCSEP into an employment and training program for low-income older persons (65+) most in need.
  2. Curtail assigning of SCSEP participants as staff for nonprofit and public agencies.
  3. Require SCSEP grantees to achieve only those common measures applicable to WIA and all federal job training and employment programs:
    1. entered employment,
    2. retention in employment; and
    3. earnings.
  4. Track community services provided as secondary outcomes for SCSEP.

Restructure the SCSEP delivery system.

  1. Establish a single grantee to operate SCSEP in each state. This SCSEP grantee would be determined either:
    1. By USDOL conducting a national competition, or
    2. By each state.
  2. Require grant competition at least once every three years in place of current system sanctioning grantees for poor performance.
  3. Require all grantees to show annual yearly progress similar to what is being proposed for WIA One Stops.
  4. Broaden the types of entities eligible to become SCSEP grantees to include non-profit agencies and organizations, for-profit agencies and organizations, agencies of a state government (under terms and conditions to assure their designation through full and open competition), or a consortium of agencies and/or organizations, including political subdivisions.
  5. Retain grantees to serve older Indians and older Pacific Islander and Asian Americans.
  6. Redirect current setaside of up to 1.5% of all Title V funding from 502(e) activities to support a broader range of national activities promoting unsubsidized placements in the private sector (both nonprofit and for-profit), including outreach to businesses and older workers, research, demonstrations and pilots, training and technical assistance, dissemination of best practices, and technology improvements.

Target the program to 65 and older.

  1. Increase the minimum age of eligibility to 65, with a limited exception for ages 55 – 64.
  2. Clarify definition of "low-income" and reconsider current policies on income exclusions/inclusions that determine income eligibility.

Broaden allowable program activities for SCSEP participants.

  1. Make paid community service employment at a host agency an optional activity for all SCSEP participants (currently a mandatory activity), and allow other types of training, including classroom, on-the-job training, etc.
  2. Reduce the level of required expenditures by SCSEP grantees on participant wages and benefits from 75% to 65%.
  3. Establish 2-year durational limit for SCSEP participants (some exceptions may be allowed, as described in 2/24/06 briefing but not described in 2/24/06 document)
  4. Eliminate all fringe benefits for participants (except those required by law).

National sponors propose SCSEP principles