This is a unique agreement in the history of these programs. My written testimony describes why the Administration believes this proposal meets the objectives of the reform effort. The Workgroup believes these unique features justify moving the funding for these programs out from under the discretionary caps. We would add that if such changes are made, we believe it is essential that the proper budgetary review and controls exercised by the Department and Congress be maintained. I also note that the Senate Appropriations Committee acknowledged the problem of UI benefits being classified as mandatory while operational costs are discretionary, and included report language in the FY 2001 budget seeking a solution to this problem with the authorizing committees.
Time is short, and there is much legislative business to be completed.
However, with the workgroup's enthusiasm and bipartisan support, we believe that it should be possible to achieve enactment this year. Madam Chair, this concludes my formal remarks. I look forward to the testimony of my colleagues, and I will be glad to respond to any questions you or Members of the Subcommittee may have.