nizations to be created or exp and potentially important sou Who will derive that por issue in the present contro ficials and private social they have vital interest? those interests by obtain The poverty structu of efforts by municips Under conditions of months ago calling decentralized mu progress centers are to be opera The project called the E public offic programs propriate such sums a k-training. ough fis re nical in ne operation o Without presuming approved. EXPAND THE WAR 280 Create jobs; and jobs, as we in the A subtan'ial increase in are the key to the war on povert Invernent; so is the p We hope the ་. the additional moneys provided b fiscal 1966-for the thousands of projec. ry to help millions of Americans in need-is a m e face of the limited resources of most of the loca the antipoverty war must be waged, and considering the es sought, and outlay of less than three-tenths of 1 percent gross national product is hardly extravagant. greatly ble progress has been made during the short period since last influe when funds were first appropriated for this act by the Congress. A and many already are in operation. Mr. Shriver has said that by has been assembled. Regulations have been written. Programs have been June 30 he hopes to have 10,000 young men and women enrolled at the Job Neighborhood Youth Corps and work-study programs, 2,000 VISTA volunteers in training or at work, and community action programs approved by 350 localexperience training, aids for migrant workers, and for rural and small business ities. In addition, other special programs-for adult basic education, workloans-will be well on the way. centers, about 200,000 needy young people at part-time work under the The amendments proposed by the administration seek to inject new ideas and new people as well as far more money-into essentially new efforts to help poor people to help themselves. There is no doubt that the new Federal money will be welcomed by most communities. However, it is inevitable that occasionally there should be controversy as to which agencies-private and public-should receive the money, administer it, and how much should be allotted to each. The introduction of new people with new ideas into the planning and administration of these programs-including representatives of minority groups, organized labor and the poor themselves-creates some problems of acceptance, accommodation and adjustment. This is probably true both for the newcomers and for people long involved. But such inherent difficulties must not be permitted to deflect the top administrators of this law from the basic essential principle that the planning and administration should include adequate representation of minority groups, trade unions, and the poor. Mr. Chairman, the war on poverty, as framed by the 1964 act and the present bill, not only reflects the deep concern of President Johnson, the Congress, and the Nation about the plight of the poor; it also reflects faith in the ability of Americans to work effectively together-at the local as well as the national level to do something constructive about it. We Organiz strong now as it w on many local While Washington now provides leadership, funds, ideas, and standards for the implementation of these new programs, the success of many of themparticularly the community action programs-depend upon the cooperative efforts of thousands of concerned people in the cities and towns and rural areas. In this aspect of the war on want, local initiative now has a chance to demonstrate what it can accomplish. New programs and new ideas always upset some people, for a time. But we must be confident that good commonsense and basic dedication to the cause will ultimately prevail. the elder The winner by wid time e It itself FO few re described seems to represent exactly what icipation by local persons to help themselves rves only persons living within a certain create jobs; and the ker to discrimination alger spriation of at least so 28 a thoroughcol? risk the r The Federal frva tar EXPAND need money. That there be work-related proje Projects aimed at en regular workers, reduc.. agreements. That projects under this a guidance to the poor with the We stand on these principles. Organized labor's early and enthusiastic mination to play, wherever possible, a leau. strong now as it was last year. The AFL-CIO is now conducting a series of re of the Nation, where the opportunities and challe discussed by trade unionists. on projects and CUNA d through experience, al staffing of credit 'cation for Persons Esther Peterson, ed credit unions lleviating many than middlejon, skill, and nions locally, the national regarding nagement. economic nions in Organized labor is represented on the National Adv. advises the director as to the conduct of the overall pro functioning Labor Advisory Committee as well. Labor is a. on many local community action committees and it is our intent. that this will be the pattern everywhere. What is more, we hope facilities of the labor movement-its leaders and its union halls-W utilized by the antipoverty programs. by Government studies. omes. uing the hat the war on poverty. But let me sketch the profile of poverty itself, as sh I am sure it is not necessary for us to tell this committee the importa, f memAbout half the poor families are headed by persons who are in the labor force who are unemployed or who, in a shocking number of cases, are actually This means that about half of the poverty problem is related to the lack o About one-quarter of the poor families are headed by persons who are past This means that a quarter of the poverty problem is related to the needs of employed. jobs at good wages for all. retirement age. the elderly. The remaining one-quarter of the poor are in families whose nominal breadwinner is dead, disabled, or has disappeared. Many of these families are headed by widows or deserted wives, who cannot care for their children and at the same time earn a subsistence income. It is obvious from this brief summary that the bill before you cannot, in itself, win the war on poverty. No single measure could do that. Fortunately, many other measures have been devised. I will name only a few of the most important ones. One which has special significance is a bill to extend the coverage of the Fair Labor Standards Act to millions who are now denied its protection, and to This would bring a measure of raise the statutory minimum wage to $2 an hour. justice to the poor whose plight is perhaps the most shameful-the working poor, fully employed in useful jobs, who earn too little to escape from poverty. Also before this committee are companion proposals to increase the overtime penalty under Fair Labor Standards Act to double time, and to shorten the basic workweek to 35 hours. These are among a series of measures designed to fident that these are "growing pains" that will, for the most part, cure themselves. Now as to the bill itself: As we understand it, S. 1759 has been introduced by Chairman McNamara on behalf of the administration in order to accomplish two major objectives. The first involves financing. An authorization of $1.5 billion is proposed for fiscal 1966, and an authorization is asked to appropriate such sums as may be necessary for fiscal 1967. To promote the most effective use of these funds, it is proposed that they be authorized on an overall basis as opposed to the separate program authorizations now provided. In addition, it is proposed to extend the 90 percent Federal financing of costs under the work-training, work-study, com munity-action, and adult basic education programs through fiscal 1967. In our judgment these requests are justified and should be approved. Second, certain amendments of the 1964 act are offered, not to authorize any new types of programs but to increase the effectiveness of those already underway. We understand that they are essentially technical in nature and that their need grows out of practical experience with the operation of the act. We are advised that these are realistic proposals. Without presuming expertise on all of them, we believe they also should be approved. Now let me turn to our views on the additional moneys provided by this bill. The $12 billion proposed for fiscal 1966-for the thousands of projects to be undertaken across the country to help millions of Americans in need-is a modest request indeed. In the face of the limited resources of most of the local communities where the antipoverty war must be waged, and considering the desirable objectives sought, and outlay of less than three-tenths of 1 percent of the Nation's gross national product is hardly extravagant. A Remarkable progress has been made during the short period since last October, when funds were first appropriated for this act by the Congress. staff has been assembled. Regulations have been written. Programs have been organized and many already are in operation. Mr. Shriver has said that by June 30 he hopes to have 10,000 young men and women enrolled at the Job Corps centers, about 200,000 needy young people at part-time work under the Neighborhood Youth Corps and work-study programs, 2,000 VISTA volunteers in training or at work, and community action programs approved by 350 localities. In addition, other special programs-for adult basic education, workexperience training, aids for migrant workers, and for rural and small business loans-will be well on the way. The amendments proposed by the administration seek to inject new ideas and new people as well as far more money-into essentially new efforts to help poor people to help themselves. There is no doubt that the new Federal money will be welcomed by most communities. However, it is inevitable that occasionally there should be controversy as to which agencies-private and public-should receive the money, administer it, and how much should be allotted to each. The introduction of new people with new ideas into the planning and administration of these programs-including representatives of minority groups, organized labor and the poor themselves-creates some problems of acceptance, accommodation and adjustment. This is probably true both for the newcomers and for people long involved. But such inherent difficulties must not be permitted to deflect the top administrators of this law from the basic essential principle that the planning and administration should include adequate representation of minority groups, trade unions, and the poor. Mr. Chairman, the war on poverty, as framed by the 1964 act and the present bill, not only reflects the deep concern of President Johnson, the Congress, and the Nation about the plight of the poor; it also reflects faith in the ability of Americans to work effectively together-at the local as well as the national level to do something constructive about it. While Washington now provides leadership, funds, ideas, and standards for the implementation of these new programs, the success of many of themparticularly the community action programs-depend upon the cooperative efforts of thousands of concerned people in the cities and towns and rural areas. In this aspect of the war on want, local initiative now has a chance to demonstrate what it can accomplish. New programs and new ideas always upset some people, for a time. But we must be confident that good commonsense and basic: dedication to the cause will ultimately prevail. The labor movement fully recognized the many complex problems that this new and hopeful undertaking must overcome. But we also fully recognize the need for adequate Federal standards to be applied in all aspects of the program. The AFL-CIO firmly believes that the following Federal standards should be maintained: That no one be allowed to veto the benefits intended by this act for all of the poor, without discrimination—whether he be a Governor, a local official, or anyone else. That representatives of minorities, of organized labor, and of the poor themselves be fully accepted as fully participating partners in the development, planning, and administration of projects. That on all work-related projects, no less than $1.25 an hour (the prevailing Federal minimum) shall be paid for each hour of work. To do less would be to embrace a concept that this country rejected a generation ago that it is all right to pay starvation wages to people who desparately need money. That there be effective enforcement of the act's provision that jobs in work-related projects not involve work that otherwise would be done. Projects aimed at ending poverty surely must not create it by displacing regular workers, reducing new hiring, or impairing collective bargaining agreements. That projects under this act provide adequate assistance, training, and guidance to the poor with the goal of helping them move out of poverty. We stand on these principles. Organized labor's early and enthusiastic support for this effort and our determination to play, wherever possible, a leading part in its success remains as strong now as it was last year. The AFL-CIO is now conducting a series of regional conferences in all parts of the Nation, where the opportunities and challenges inherent in the act are discussed by trade unionists. Organized labor is represented on the National Advisory Committee which advises the director as to the conduct of the overall program; and there is a functioning Labor Advisory Committee as well. Labor is already represented on many local community action committees and it is our intention to make sure that this will be the pattern everywhere. What is more, we hope that the local facilities of the labor movement-its leaders and its union halls-will be fully utilized by the antipoverty programs. I am sure it is not necessary for us to tell this committee the importance of the war on poverty. But let me sketch the profile of poverty itself, as shown by Government studies. About half the poor families are headed by persons who are in the labor force who are unemployed or who, in a shocking number of cases, are actually employed. This means that about half of the poverty problem is related to the lack of jobs at good wages for all. About one-quarter of the poor families are headed by persons who are past retirement age. This means that a quarter of the poverty problem is related to the needs of the elderly. The remaining one-quarter of the poor are in families whose nominal breadwinner is dead, disabled, or has disappeared. Many of these families are headed by widows or deserted wives, who cannot care for their children and at the same time earn a subsistence income. It is obvious from this brief summary that the bill before you cannot, in itself, win the war on poverty. No single measure could do that. Fortunately, many other measures have been devised. I will name only a few of the most important ones. One which has special significance is a bill to extend the coverage of the Fair Labor Standards Act to millions who are now denied its protection, and to raise the statutory minimum wage to $2 an hour. This would bring a measure of justice to the poor whose plight is perhaps the most shameful-the working poor, fully employed in useful jobs, who earn too little to escape from poverty. Also before this committee are companion proposals to increase the overtime penalty under Fair Labor Standards Act to double time, and to shorten the basic workweek to 35 hours. These are among a series of measures designed to create jobs; and jobs, as we in the AFL-CIO have said so often and for so long, are the key to the war on poverty, just as they are the key to the battle against discrimination. A substantial increase in the Federal public works program, setting a minimum appropriation of at least $2 billion a year, is also essential to this job-creating movement; so is the expansion of the Appalachia concept of area redevelopment; so is a thoroughgoing housing and urban renewal program. We hope the Congress will soon complete a giant step forward toward relieving one-quarter of the poor by passing the historic social security bill of this year, establishing medical care for the aged and raising old-age benefits. We could add many items to this list, but this would contain elements of risk-the risk that by omitting an item we would seem to be branding it as unimportant. All the items in our program are important. So I will mention only one more point, having special application to the poor. The Federal Government collects, each year, about $300 million in income taxes from families whose earnings are at or below the poverty level. This makes no sense to us; and I am sure it makes no sense to you. Mr. Chairman, I appreciate this opportunity to present the views of the AFLCIO on the antipoverty program. We are proud of this country's efforts to wipe out human suffering, to abolish poverty, to assure everyone in this great land the rights and the opportunities that are the elements of the American dream. The Economic Opportunity Act and the amendments contained in S. 1759 will not end poverty, but they symbolize this Nation's determination to do so. STATEMENT OF J. ORBIN SHIPE, MANAGING DIRECTOR, CUNA INTERNATIONAL, INC., (THE WORLDWIDE ASSOCIATION OF CREDIT UNIONS) Mr. Chairman and members of the subcommittee, CUNA International, Inc., the worldwide association of credit unions, appreciates this opportunity to present a statement on the activities of the credit union movement in the war on poverty. In the less than 12 months since the Economic Opportunity Act of 1964 was enacted, I am happy to report that credit unions have begun to demonstrate their usefulness in helping to eliminate the economic problems of the poor. Under the provisions of title II of the act, credit unions have participated in the antipoverty program through community action. Today about 20 community action programs involving individual credit unions, credit union leagues, or CUNA International are either in operation or planned to provide needed credit services and outlets for consumer information. One of these programs, a full-scale effort involving credit unions in urban centers, is well underway here in Washington. A byproduct of Washington Action for Youth, it derives its funds from Federal juvenile delinquency grants, the Ford Foundation, and the Office of Economic Opportunity. Through contracts with the District of Columbia Credit Union League and the United Planning Organization (UPO), the community planning agency, the program is designed to assist in organizing and supporting credit unions in six low-income neighborhood centers. One of the credit unions involved in a contract with the District of Columbia Credit Union League and UPO is the Fides Community Federal Credit Union at 1554 Eighth Street, NW. For some time before the war on poverty began, this credit union had existed to serve persons making use of Fides House, a neighborhood center. By agreement of the parties concerned and the Bureau of Federal Credit Unions, the charter of the credit union was amended to expand its potential membership to all persons living in census tracts 48 and 49. Using money provided through UPO, the credit union directors agreed to hire a manager and two employees on a full-time basis to operate the credit union. The hiring of this full-time management was in accord with CUNA International's experience that such staffing contributes immeasurably to the success of a credit union in a low-income area. For their part, the District of Columbia Credit Union League, CUNA International, Inc., and the Bureau of Federal Credit Unions are contributing the expertise required for the successful operation of the credit union. This assistance includes management training, a 1-month teller-training program, and a special training program using CUNA International's family financial counseling specialist. |