January 9, 2004



The Honorable Arlen Specter, Chairman
Subcommittee on Labor, Health and Human Services and Education
Senate Appropriations Committee
184 Senate Dirksen Building
Washington, D.C. 20510

Dear Chairman Specter:

I am writing on behalf of the Council of State Administrators of Vocational Rehabilitation (CSAVR) to request consent to have a witness chosen by CSAVR to provide testimony on the Public VR Program in the upcoming hearing on the FY 2005 appropriations for the Departments of Labor, Health and Human Services, and Education. The CSAVR is composed of the chief administrators of the Public Vocational Rehabilitation (VR) agencies serving individuals with physical and mental disabilities in the states, District of Columbia, and the territories. These agencies constitute the state partners in the State-Federal, public-private partnership referred to as the Public VR Program.

The Public VR Program is one of the most cost effective programs ever created by Congress. In any given year, State VR agencies nationwide provide services and supports to more than 1.4 million individuals with disabilities who are trying to overcome barriers to employment. Of those served each year, more than 220,000 are placed in competitive employment. The basic funding mechanism for the program, which requires a state match of 21.3 percent, creates a state-federal partnership that has worked well for over 83 years and has assisted more than 14 million individuals with disabilities to go to work and become tax-paying citizens.

The Rehabilitation Act mandates that the annual Federal appropriation for the VR program grow at a rate at least equal to the change in the Consumer Price Index (CPI) over the previous fiscal year. While this mandate was intended to create a floor for the VR appropriation, Congress has not appropriated funds above the mandated CPI increase for a number of years.

Unfortunately, a number of external forces have exacerbated the challenges resulting from the insufficiency of VR’s federal funds. First and foremost are the challenges facing VR agencies as they try to address the needs of ever increasing numbers of special education students who are leaving the education system and seeking vocational rehabilitation services to go to work. Between 1994 and 2004, the federal appropriation for special education increased by approximately 390 percent. During the same period, the federal appropriation for the Public VR Program increased by less than 30 percent.

Chairman Spector, the VR agency in Pennsylvania served 83,273 individuals with disabilities during FY 2003, placing 10,628 of those served in competitive employment. Approximately 34 percent of those served and those placed in employment during FY 2003 were transition age students with disabilities. There are reportedly 551 high schools in Pennsylvania providing educational services to approximately 134,124 students with disabilities ages 12 to 21. Proposed amendments to the transition provisions in the Rehabilitation Act (i.e., in S. 1627, S. 1248 and H.R. 1261) would significantly increase VR responsibilities with regard to serving transition age students with disabilities without providing any new federal funding. CSAVR fears that these increased responsibilities without an accompanying increase in federal funding will only increase the expectations of students with disabilities and their families for services that State VR agencies will not be able to provide. While CSAVR supports expanding VR’s role in transition services, such an expansion must be accompanied by a significant increase in VR’s appropriation or State VR agencies will be forced to divert funds from serving adults with disabilities to serving youth with disabilities.

In addition, if the infrastructure funding provisions proposed in the pending bills to reauthorize the Workforce Investment Act (S. 1627 and H.R. 1261) become law, State VR agencies will be forced to divert funds away from serving individuals with disabilities to supporting the infrastructure costs of the One-Stop service delivery system. CSAVR is particularly concerned about such a diversion of funds given that a significant number of One-Stop Centers continue to be inaccessible to individuals with disabilities.

In 1999, the Ticket to Work and Work Incentives Improvement Act authorized a new Social Security program to address the employment and training needs of beneficiaries with disabilities. State VR agencies are currently receiving 85 to 90 percent of the ticket assignments and have had to dedicate significant resources to implementing this program without any increase in federal funds.

As a result of insufficient funding and the impact of these and other external challenges on the resources of the Public VR Program, more that 35 State VR agencies have implemented an order of selection, i.e., a process whereby individuals with the most significance disabilities are served first and others are placed on a waiting list.

Please let us know at your earliest convenience whether a CSAVR witness will be permitted to testify during the Labor, HHS, and Education Appropriations Hearing which will likely be scheduled in February or March. If you have any questions about the Public VR Program or about CSAVR, please feel free to call me at (301) 654-8414.



Sincerely,

Carl Suter
Executive Director

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