Labor secretary grilled over 2008 budget

Appropriator also takes department to task for awarding too many non-competitive contracts.

Labor Secretary Elaine Chao came under stiff criticism Thursday at the House Labor-Health and Human Services Appropriations Subcommittee with both Republicans and Democrats questioning her budget and policies.

Appropriations Chairman David Obey, D-Wis., who is also the subcommittee's chairman, criticized her for what he said were too many non-competitive-bid contracts given out by her agency and for splitting up Job Corps responsibilities among four departments.

Obey said 127 out of 150 agency contracts were made on a non-competitive basis, and asked Chao whether that was true. After being asked four times, Chao finally replied, "Yes, sir."

Similarly, Rep. Nita Lowey, D-N.Y., grilled Chao over what Lowey said was lack of planning for how to protect healthcare workers in a case of a pandemic influenza. Chao said Occupational Safety and Health Administration regulations do not require a plan until the flu has hit workers.

"Do you want to change the law before a pandemic hits?" Lowey asked, somewhat incredulously. Chao eventually assented to work with Congress on the possibility of changing the OSHA laws and regulations.

Rep. Mike Simpson, R-Idaho, asked her about proposed cuts in the Workforce Investment Act programs, which help retrain workers who are laid off from their jobs. Chao asserted that states have between $1.2 billion and $1.7 billion in surplus now in the program and that it does not need more funds.

Under the administration's fiscal 2008 budget proposal, the programs would be cut by about $1 billion, according to the American Federation of State, County and Municipal Employees.

Simpson said his local WIA office in Coeur D'Alene needs funds every year and said the surplus is saved for a rainy day when workers are laid off.

Labor-HHS Appropriations Subcommittee ranking member James Walsh, R-N.Y., cited a portion of the budget that eliminated an $81 million program for services to migrant workers in the rural areas in which they work, and required them to travel to urban "one-stop shopping" employment and training centers. "Their jobs are a long way from the one-stop shopping centers," Walsh said.

Walsh said the Bush administration has cut funds for the rural migrant worker program in each of the last five budgets, and each year, the Congress has restored the funds.

"There is disagreement between Congress and the administration on this," Chao allowed.

"Five years worth," Walsh retorted.