South By North Strategies, Ltd.

The $14-billion discretionary budget proposal for fiscal year 2001l put forth yesterday by the U.S. Department of Labor is notable in at least three respects.

First, the proposal is organized around the concept of “good jobs for everyone.” It defines “good jobs” as follows:

jobs that can support families by increasing incomes and narrowing wage gaps; jobs that are safe and secure and give people a voice at the workplace and at the table; jobs that are sustainable and innovative; jobs that export products, not paychecks; and, jobs that rebuild and restore a strong middle class.

Second, the agency intends to focus its efforts on strengthening workplace protections and addressing the growing problem of employee misclassification. Misclassification is when employees are improperly considered independent contractors and therefore do not receive the benefits for which regular employees are eligible to receive.

Finally, the agency seeks to reform and reinvigorate its workforce development programs, especially those provided under the Workforce Investment Act, which currently is awaiting congressional re-authorization. To advance reforms, the agency intends to use $261 million to establish a Workforce Innovation Fund and a Youth Innovation Fund. The agency also plans to undertake five major evaluations of key programs.