Consolidation and Block Grants: Curse or Blessing?

Executive Summary

W. Norton Grubb, NCRVE Berkeley Site Director

The process of consolidating federal funds for vocational education, job training, and adult education has become incredibly murky. Instead of earmarking funds for separate programs, as has been done in the past, Congress is likely to approve some version of block grants that will give states increased control over how funds are spent. The exact details of the final legislation are still to be resolved. In the current debate, bizarre challenges from anti-government forces, debates over vouchers, election-year politics, and the normal difficulties of reconciling different legislation passed by the House and Senate are all colliding. The outcome is far from clear--though that has not stopped states from tinkering with their governance mechanisms, in anticipation of some version of consolidation.

The Good News

Consolidation contains both good news and bad news. The potential blessings are substantial. Consolidation will free states from federal regulations and allow them to combine their vocational education, job training, and adult education programs in more rational and coherent "systems" of workforce development--in place of the current array of uncoordinated programs.

States need their own visions to guide such coherent systems. They need to develop their vision with all the relevant programs participating--occupational programs in community colleges and adult education as well as job training and welfare-to-work programs, for example.

One vision for a coherent system would be to link short-term job training efforts--whose economic benefits are small, and generally decline after four or five years--to longer-term occupational education in community colleges and technical institutes, which have more substantial and sustained economic benefits. The role of adult education would be to provide the remedial or academic instruction necessary--remediation at the lower levels, and higher-order "academic" competencies as individuals moved up these "ladders" of training opportunities. Then individuals could enter the "system" at any level, complete a program, and return to employment as necessary--but be able to continue with their education as their circumstances permit. This kind of coherent system would enable individuals over time to move into the middle-skilled occupations that would allow them to move off welfare or escape poverty.

The Bad News

The curse of consolidation is easy enough to see: it will reduce overall federal funding and disrupt familiar programs. And it might give a boost to another cursed idea, long popular in policy circles: vouchers for postsecondary vocational education and job training, now being promoted by President Clinton in the form of tax deductions as well as by free-market Republicans in the form of "skill grants."

But the conditions necessary for vouchers to work well are missing. Most obviously, the "consumers" are not well informed. When my colleagues and I interviewed community college students, the majority of them had no idea what they wanted to do. Many were in community colleges because they provided a low-cost method of finding out more about options, not because these students had made a rational choice among alternative providers. And those in job training, welfare-to-work, and adult education programs are often in similar positions: with the exception of a few individuals (like dislocated workers, with considerable labor market experience), they have little information about the alternatives open to them and find themselves in programs almost haphazardly.

Furthermore, better information necessary for informed consumers--about the completion and placement rates of local programs, for example, or about long-term employment prospects -- is generally not available. Vocational education and job training are not like normal commodities--bread or pants, for example. Their effects are uncertain, and often depend on the state of the labor market or the characteristics of students. The one case where vouchers have been tried to fund vocational education--the use of student aid for proprietary schools--has been a dismal failure, with many students defrauded by low-quality schools and forced into high default rates. Until we know a great deal more about the effects of local programs, vouchers would be a poor mechanism for states to adopt.

Three Keys to a Successful Transition

During this period of transition, there are three key points to keep in mind.
  1. It is important to improve the quality of the education and training system, not sacrifice its effectiveness in the name of state control. In the past, the creation of block grants has enabled states to reduce program costs by reducing the quality of services provided. This is particularly likely when overall revenues are reduced, as may happen in the current consolidation.
  2. Although it is important that the overall education and training system allow second chances, the separate second-chance system should not be enlarged. Programs for vocational education have traditionally sought to improve the "first-chance" educational efforts of high schools and postsecondary institutions like community colleges, while programs for job training and adult education have supported "second-chance" programs for those without skills to find employment. If consolidated funds are used to improve educational programs rather than to support second-chance programs, states could both strengthen the first-chance programs and continue second-chance programs articulated with education.
  3. Finally, states need to create coherent education and training systems, not recreate the uncoordinated array of programs that consolidation is intended to correct. One vision appropriate for such a coherent system is the one I articulated above, where short-term job training programs are linked to longer-term occupational education programs through community colleges and technical institutes. This vision is also consistent with the principles articulated in the School-to-Work Opportunities Act of 1994. This legislation insisted that occupational and academic instruction should be integrated, that work-based learning should be combined with classroom instruction, and that each level should be linked to the next higher level--an idea implicit in the requirement that every high school program include at least one year of postsecondary education. These principles could guide any program of workforce development, and encourage states to create more effective and coherent systems from the fragmented efforts they now have.

This article draws in part on Grubb's book about job training programs, Learning to Work: The Case for Reintegrating Job Training and Education (New York: Russell Sage Foundation, May 1996)

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