U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

FBP

CORRESPONDENCE SYMBOL

TP

ISSUE DATE

August 3, 1998

RESCISSIONS

None

EXPIRATION DATE

Continuing

DIRECTIVE : TRAINING AND EMPLOYMENT INFORMATION NOTICE NO. 05-98
 
TO : ALL STATE JTPA LIAISONS
ALL STATE WAGNER-PEYSER ADMINISTERING AGENCIES
ALL STATE WORKER ADJUSTMENT LIAISONS
ALL ONE-STOP CAREER CENTER SYSTEM LEADS
 
FROM : DAVID HENSON
Director
Office of Regional Management
 
SUBJECT : Federal Bonding Program (FBP)

  1. Purpose. To inform the Job Training Partnership Act (JTPA) and Employment Service network of steps being taken in the redirection of the Federal Bonding Program.

  2. Background. Since 1966, the Employment and Training Administration (ETA) has administered, through contract, the Federal Bonding Program. Initiated as a small demonstration project, this innovative activity delivers a unique helping service that is not duplicated by any other program in the U.S. to secure the job placement of ex-offenders and other high-risk job applicants. The FBP functions as a job placement tool by providing employers with a special incentive to hire the hardest-to-place jobseekers.

  3. Program Redirection. This year, ETA is undertaking a major redirection of the FBP to a Federal-State partnership. This decision is based on several considerations:

  4. Funding. During Program Year (PY) 1997, ETA utilized resources from the previous program year to support the FBP at a slightly expanded level to aid in the move to the Federal-State partnership. ETA is providing funding at a fixed reduced level to he FBP in PY 1998. Under the existing contractual arrangement, a limited bond allocation has been issued to each of the States to assure that a small Federally-financed floor is available to provide continuity in the program. States can use their own resources to supplement Federal funding to provide fidelity bonding to ex-offenders and other hard-to-place applicants.

    The project staff has been engaging in activities designed to facilitate the transition to partial State and local funding for bond issuance. Instructions as to how to proceed were issued to State Employment Service Directors and State Bonding Coordinators.

  5. Action Required. States are encouraged to carefully examine resources that might be available for this purpose.

  6. Inquiries. Questions regarding this TEIN may be directed to Richard Muller of the Office of Policy and Research on (202) 219-7674 (x168).