[Federal Register: May 20, 1998 (Volume 63, Number 97)]
[Notices]
[Page 27805-27809]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20my98-122]
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_______________________________________________________________________
Part III
Department of Education
_______________________________________________________________________
Systems-Change Projects To Expand Employment Opportunities for
Individuals With Mental or Physical Disabilities, or Both, Who Receive
Public Support; Notice
[[Page 27806]]
DEPARTMENT OF EDUCATION
RIN 1820-ZA11
Systems-Change Projects To Expand Employment Opportunities for
Individuals With Mental or Physical Disabilities, or Both, Who Receive
Public Support
AGENCY: Office of Special Education and Rehabilitative Services,
Department of Education.
ACTION: Notice of proposed priority and definitions for fiscal year
(FY) 1998 and subsequent years.
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SUMMARY: The Secretary proposes a priority for fiscal year (FY) 1998
and subsequent years under section 12(a)(3) of the Rehabilitation Act
of 1973, as amended (the Act) (29 U.S.C. 762(b)(3)), authorizing the
conduct of special projects and demonstrations in carrying out the
purposes of the Act. The priority would support five-year projects to
expand employment outcomes for individuals with mental or physical
disabilities, or both, who receive public support. The priority is
intended to enhance collaboration in existing systems to increase
competitive employment opportunities for individuals with disabilities
who are participants in public support programs funded by Federal,
State, and local agencies.
DATES: Comments must be received by the Department on or before June
19, 1998.
ADDRESSES: All comments concerning this proposed priority should be
addressed to Dr. Thomas Finch, U.S. Department of Education, 600
Independence Avenue, SW., Room 3038, MES Building, Washington, DC.
20202-2650. Comments may also be sent through the Internet to:
comments@ed.gov
You must include the term ``Systems-Change Projects'' in the
subject line of your electronic message.
FOR FURTHER INFORMATION CONTACT: Pedro Romero, U.S. Department of
Education, 600 Independence Avenue, SW., Room 3316, MES Building,
Washington, DC. 20202-2650. Telephone: (202) 205-9797. Individuals who
use a telecommunications device for the deaf (TDD) may call the Federal
Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8
p.m., Eastern time, Monday through Friday.
Individuals with disabilities may obtain this document in an
alternate format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed in the preceding
paragraph.
Electronic Access to This Document
Anyone may view this document, as well as all other Department of
Education documents published in the Federal Register, in text or
portable document format (pdf) on the World Wide Web at either of the
following sites:
http://ocfo.ed.gov/fedreg.htm
http://www.ed.gov/news.html
To use the pdf you must have the Adobe Acrobat Reader Program with
Search, which is available free at either of the previous sites. If you
have questions about using the pdf, call the U.S. Government Printing
Office toll free at 1-888-293-6498.
Anyone may also view these documents in text copy only on an
electronic bulletin board of the Department. Telephone: (202) 219-1511
or, toll free, 1-800-222-4922. The documents are located under option
G--Files/Announcements, Bulletins and Press Releases.
Note: The official version of this document is the document
published in the Federal Register.
Goals 2000: Educate America Act
The Goals 2000: Educate America Act (Goals 2000) focuses the
Nation's education reform efforts on the eight National Education Goals
and provides a framework for meeting them. Goals 2000 promotes new
partnerships to strengthen schools and expands the Department's
capacities for helping communities to exchange ideas and obtain
information needed to achieve the goals.
This proposed priority would address the National Education Goal
that every adult American, including individuals with disabilities,
will possess the knowledge and skills necessary to compete in a global
economy and exercise the rights and responsibilities of citizenship.
The Secretary will announce the final priority in a notice in the
Federal Register. The final priority will be determined by responses to
this notice, available funds, and other considerations. Funding of
particular projects depends on the availability of funds, the nature of
the final priority, and the quality of the applications received. The
publication of this proposed priority does not preclude the Secretary
from proposing or funding additional priorities, subject to meeting
applicable rulemaking requirements.
Note: This notice of proposed priority does not solicit
applications. In any year in which the Secretary chooses to use this
proposed priority, the Secretary invites applications through a
notice in the Federal Register.
Priority
Background
According to the 1994 Harris Survey of Americans with Disabilities,
two-thirds of individuals with disabilities between the ages of 16 and
64 are not working. Many of these individuals receive financial support
or services through programs funded by Federal, State, and local
agencies. Examples of these programs include Temporary Aid to Needy
Families (TANF), Supplemental Security Income (SSI), Social Security
Disability Income (SSDI), Medicaid (including Medicaid waiver
programs), Medicare, subsidized housing, and food stamps.
Statistical data reveal that of the 32 percent of adult recipients
of Aid to Families with Dependent Children (AFDC) who had a work or
functional disability, 15 percent were able to work despite their
functional limitations (National Health Interview Survey on Disability,
U.S. Department of Health and Human Services, 1994). Studies conducted
in Kansas and Washington indicate that up to 60 percent of the current
TANF recipients in those States have some type of disability. At the
same time, the TANF program requires recipients to work and also limits
the length of TANF assistance--recent developments that further
underscore the need to reduce barriers to employment confronted by
individuals with disabilities on public support.
In addition, the proportion of individuals with disabilities
receiving public support through SSI or SSDI continues to increase.
Over the past decade, the total number of SSI and SSDI beneficiaries
has doubled, and cash payments for these individuals increased to over
$55 billion (World Institute on Disability, 1996). Social Security
recipients often do not work since they would lose their Social
Security and Medicaid benefits if their earnings increased beyond a
threshold level. Thus, few individuals leave the Social Security
system. New adult SSI recipients receive benefits for an average of 10
years, whereas individuals who receive SSI benefits as children remain
on the rolls for an average of approximately 27 years (Rupp and Scott,
1995).
Many individuals participating in public support programs,
including the programs discussed previously, are unable to obtain the
services or supports they need to become competitively employed and
achieve economic independence. Employment training
[[Page 27807]]
programs that serve the general population, as well as employers
themselves, are often unable to meet the specialized needs of these
individuals. In addition, individuals with disabilities who are not
eligible for State vocational rehabilitation services, or who do not
believe that they need a comprehensive rehabilitation program, are
still unlikely to receive work-related services from employment
training programs that serve the general population. Consequently, many
individuals with disabilities who are capable of working essentially
``fall between the cracks.'' The Secretary expects that the models
developed under the proposed priority will demonstrate how employment
training and other related programs can more effectively coordinate
services so that individuals with disabilities can obtain employment.
Seventy-nine percent of unemployed individuals with disabilities
have indicated that they would prefer to be working (Harris Survey,
1994). The combination of the high costs associated with living with a
disability, work-related expenses, and the reduction in public supports
available to persons once they become employed often dissuade
individuals with disabilities from pursuing competitive work. Some of
the specific barriers to the employment that individuals with
disabilities commonly confront include--
* Lack of adequate health insurance (e.g., individuals' fear
of losing public health care coverage, inability to obtain private
medical insurance, or limited access to treatment and prescription
services);
* Underutilization of existing work incentives from Social
Security and other State and local agencies (e.g., Plan for Achieving
Self Support (PASS), and Impairment Related Work Expenses, section
1619a and b of the Social Security Act);
* Lack of affordable, accessible housing and transportation;
* Insufficient education and training services;
* Lack of child care;
* Inadequate supports for employees with disabilities (e.g.,
onsite and offsite job accommodations and long-term follow-along
services); and
* Inadequate supports for employers (e.g., incentives for
hiring, retaining, and promoting individuals with disabilities and
technical assistance and follow-along consultation to assist employers
in addressing the ongoing needs of employees with disabilities and to
clarify employer misperceptions and misinformation).
Lack of information and coordination of public support programs can
cause program-related barriers that inhibit individuals with
disabilities from effectively using available services. In many
instances, individuals with disabilities are simply unaware of existing
employment-related programs, work incentives, or available services.
Another common barrier is the lack of coordination between separate
programs with separate eligibility criteria even though the same
individuals often require services from each program. The Secretary
expects projects to address these types of program-related barriers, as
well as any other type of barrier that impedes individuals with
disabilities from becoming employed and self-sufficient.
There is a critical need for greater coordination between multiple
public programs that support individuals with disabilities that would
foster increased economic self-sufficiency and a more efficient use of
public resources. In an effort to address this need, the Secretary
proposes the following priority in order to provide a framework for
assisting individuals with disabilities to reduce their reliance on
various public support programs and obtain and maintain employment in
the competitive labor market.
The requirements in the priority are designed to facilitate
systems-change projects that eliminate barriers to employment for
individuals with disabilities and are based on existing studies and
reports, the experiences of State vocational rehabilitation agencies in
working with individuals participating in other public support
programs, and on information provided by other Federal agencies that
administer disability-related programs. These Federal agencies were
particularly helpful in assisting the Secretary to identify the
employment-related barriers confronted by individuals with disabilities
that the Secretary proposes to target through this priority and to
identify the types of State agencies whose participation in the project
would be most critical to eliminating those barriers. The identified
State agencies would serve as members of a consortium that the systems-
change project would establish under paragraph (A) of the priority.
The Secretary emphasizes that the model systems-change projects
that would be supported under this priority are part of a larger effort
on the part of the Federal Government to create a coordinated and
aggressive national policy to reduce the unemployment rate of
individuals with disabilities and to assist those individuals in
obtaining competitive jobs. This effort is directly reflected in
Executive Order 13078, signed on March 13, 1998, entitled ``Increasing
Employment of Adults With Disabilities'' (63 FR 13111, March 18, 1998).
For example, Executive Order 13078, in part, calls for an analysis of
existing programs and policies to determine what modifications and
innovations may be necessary to remove work-related barriers
experienced by individuals with disabilities; the development and
recommendation of options for eliminating barriers to health insurance
coverage for those with disabilities; and an analysis of work-related
youth programs and the outcomes of these programs for young people with
disabilities. The Secretary proposes the following priority as one
means of addressing the purposes of Executive Order 13078. As other
Federal agencies design and carry out activities in response to the
Executive order, it is expected that many of those activities will
complement the systems-change projects funded under this priority.
The Secretary also emphasizes the need for projects supported under
this priority to begin implementing strategies for removing barriers
early in the project period in order for the project to have a
measurable effect on the rate by which individuals with disabilities
become competitively employed. For that reason, the Secretary expects
project recipients to work with Rehabilitation Services Administration
staff to ensure that planning steps, including development of
partnership agreements and, if appropriate, submission of Medicaid
waiver requests under paragraph (C) of the priority, are promptly
completed and that projects begin implementing their barrier-removal
strategies as soon as possible.
The purpose of the proposed absolute priority is to establish five-
year model demonstration projects that stimulate and advance systems-
change in order to expand employment outcomes for individuals with
mental or physical disabilities, or both, who are participants in
Federal, State, and local public support programs (e.g., TANF, SSI,
SSDI, Medicaid, Medicare, subsidized housing, and food stamps, etc.)
Absolute Priority
Under 34 CFR 75.105(c)(3) and section 12(a)(3) of the Act, the
Secretary proposes to give an absolute preference to applications that
meet the following priority. The Secretary proposes to fund under this
competition only applications that meet this absolute priority:
[[Page 27808]]
A. General Requirements for Applicants
Applicants under this priority shall satisfy the following
requirements:
(1) Applicants shall form a consortium of, at a minimum, the State
vocational rehabilitation agency, the State welfare agency, the State
educational agency, the State agency responsible for administering the
Medicaid program, and an agency administering an employment or
employment training program supported by the U.S. Department of Labor.
Additional entities (e.g., public and private nonprofit organizations)
that could effectively assist in removing barriers to employment for
individuals with disabilities also may be included as part of the
consortium.
(2) The members of the consortium shall either designate one of
their members to apply for the grant or establish a separate, eligible
legal entity to apply for the grant. The designated applicant shall
serve as the grantee and be legally responsible for the use of all
grant funds, overall fiscal and programmatic oversight of the project,
and for ensuring that the project is carried out by consortium members
in accordance with Federal requirements.
(3) Consortium members shall be substantially involved in the
development of the application. Each consortium member's advisory
council, if the member has such a council, shall also participate in
the development of the application.
(4) The members of the consortium shall enter into an agreement
that details the activities that each member plans to perform and that
binds each member to the statements and assurances included in the
application. Each member is legally responsible for carrying out the
activities it agrees to perform and for using the funds that it
receives under the agreement in accordance with Federal requirements
that apply to the grant. The agreement must be submitted as part of the
application.
(5) The application submitted under this priority also must
identify the specific locality or region that would be served by the
project.
B. Project Objectives
Projects supported under this priority must--
(1) Identify systemic barriers, including State or local agency
policies, practices, procedures, or rules that inhibit individuals with
disabilities who are participants in public support programs from
becoming employed.
(2) Develop and implement replicable strategies to remove
identified barriers, including, at a minimum, strategies for--
(a) Establishing effective collaborative working relationships
among project consortium members and their partners as described in
paragraph (C)(1) of this priority (e.g., providing interagency staff
training and technical assistance on program requirements and services
or collaboratively using labor market and job vacancy information);
(b) Establishing coordinated service delivery systems (e.g., common
intake and referral procedures, customer databases, and resource
information) and developing innovative services and service approaches
that address service gaps (e.g., developing employee and employer
support networks);
(c) Improving access to health insurance for individuals with
disabilities who become employed;
(d) Increasing the use of existing resources by State and local
agencies (e.g., Medicaid waivers, Home Community Based Services
waivers, Job Training Partnership Act income exemptions, and work
incentive provisions such as Plan for Achieving Self Support);
(3) Design and implement an internal evaluation plan for which--
(a) The methods of evaluation are thorough, feasible, and
appropriate to the goals, objectives, and outcomes of the project;
(b) The methods of evaluation provide for examining the
effectiveness of project implementation strategies;
(c) The methods of evaluation include the use of objective
performance measures that are clearly related to the intended outcomes
of the project and will produce quantitative and qualitative data to
the extent possible;
(d) The methods of evaluation will provide performance feedback and
permit periodic assessment of progress toward achieving intended
outcomes; and
(e) The evaluation will provide guidance about effective strategies
suitable for replication or testing in other settings; and
(4) Disseminate information on effective systems-change approaches
developed under these projects to Federal, State, and local
stakeholders and facilitate the use of systems-change models in other
geographic areas. As examples, consortia may make presentations before
national, State, or local conferences, consult with and provide
technical assistance to other States or localities, develop Internet
web sites, and distribute project publications.
C. Project Requirements
In carrying out the priority, the projects must--
(1) Develop partnership agreements, as described under DEFINITIONS,
with the local district offices of the Social Security Administration;
the State agency or agencies responsible for mental retardation,
developmental disabilities, and mental health services; existing
transportation or paratransit service providers; and appropriate public
and private sector employers. Partnerships also may be formed with
other appropriate entities identified by the consortium, including, but
not limited to, Centers for Independent Living, consumer advocacy
organizations, economic development councils, Private Industry
Councils, Governor's committees on the employment of persons with
disabilities, developmental disabilities councils, mental health
centers, community rehabilitation programs, Indian Tribes, labor
unions, and employment and training organizations funded by the U.S.
Department of Labor;
(2) Make timely, formal requests for Medicaid waivers if necessary
for projects to be able to implement developed strategies;
(3) Implement, in a timely manner, the strategies developed by the
project to expand employment outcomes for individuals with mental or
physical disabilities, or both;
(4) Participate, as appropriate, in meetings of a Federal
Interagency Employment Initiative Workgroup and inform workgroup
members of project activities; and
(5) Participate in, and provide data for, an external evaluation of
the systems-change projects as directed by the Commissioner of the
Rehabilitation Services Administration. The evaluation would examine--
(a) The effect of specific innovative systems-change approaches and
strategies on State or local agency policies, practices, or rules
affecting the employment of individuals with disabilities; (b) The
effect of specific innovative systems-change approaches and strategies
on increasing the number of individuals with disabilities who obtain
competitive employment, including job retention, promotion,
satisfaction, and wage growth; and (c) The cost effectiveness of
employment supports and services implemented by the project.
Proposed Definitions
Consortium means a group of eligible parties formed by the
applicant seeking a Federal award under this priority. Members of the
consortium shall enter
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into an agreement and carry out their responsibilities consistent with
the requirements in paragraph (A) of the priority. Members of the
consortium shall also ensure that project partners carry out their
agreed-upon activities.
Disability with respect to an individual means a physical or mental
impairment that substantially limits one or more of the major life
activities of that individual, having a record of such an impairment,
or being regarded as having such an impairment.
Locality means specific geographical areas within a State or
States.
Partner means an entity with which the consortium has entered into
an agreement to carry out specific activities, goals, and objectives of
the project.
Partnership agreement means a written arrangement between a
consortium and its partners to carry out specific activities related to
the project.
Public Support means Federal, State, and local public programs that
provide resources or services to individuals with disabilities. These
programs include, but are not limited to, Temporary Aid to Needy
Families (TANF), Supplemental Security Income (SSI), Social Security
Disability Income (SSDI), Medicaid (including Medicaid waiver
programs), Medicare, subsidized housing, and food stamps.
Region means two or more States participating in the project.
Selection Criteria
In evaluating an application for a new grant under this
competition, the Secretary uses selection criteria chosen from the
general selection criteria in Sec. 75.210 of the Education Department
General Administrative Regulations. The selection criteria to be used
for this competition will be provided in the application package for
this competition.
Executive Order 12866
This proposed priority has been reviewed in accordance with
Executive Order 12866. Under the terms of the order the Secretary has
assessed the potential costs and benefits of this regulatory action.
The Secretary has determined that there are no costs associated
with this priority. Announcement of the priority would not result in
costs to State and local governments, recipients of grant funds, or to
individuals with disabilities and their families. The benefit from this
priority would be to focus activities and Federal assistance on
increasing competitive employment outcomes for individuals with
disabilities who are participants in public support programs through
enhanced collaboration and coordination.
The Secretary has also determined that this regulatory action does
not unduly interfere with State, local, and tribal governments in the
exercise of their governmental functions.
To assist the Department in complying with the specific
requirements of Executive Order 12866, the Secretary invites comment on
whether there may be opportunities to increase potential benefits
resulting from this proposed priority without impeding the effective
and efficient administration of the program.
Intergovernmental Review
This program is subject to the requirements of Executive Order
12372 and the regulations in 34 CFR part 79. The objective of the
Executive order is to foster an intergovernmental partnership and a
strengthened federalism by relying on processes developed by State and
local governments for coordination and review of proposed Federal
financial assistance.
In accordance with the order, this document is intended to provide
early notification of the Department's specific plans and actions for
this program.
Invitation To Comment
Interested persons are invited to submit comments and
recommendations regarding this proposed priority. The Secretary is
particularly interested in receiving comments on the composition of the
consortium and other consortium requirements. In addition, the
Secretary invites comment on whether it is appropriate or feasible for
a consortium to serve more than one State.
All comments submitted in response to this proposed priority will
be available for public inspection, during and after the comment
period, in Room 3038, MES Building, 330 C Street, S.W., Washington, DC,
between the hours of 8:30 a.m. and 4:00 p.m., Eastern time, Monday
through Friday of each week except Federal holidays.
On request the Department supplies an appropriate aid, such as a
reader or print magnifier, to an individual with a disability who needs
assistance to review the comments or other documents in the public
rulemaking docket for this proposed priority. An individual with a
disability who wants to schedule an appointment for this type of aid
may call (202) 205-8113 or (202) 260-9895. An individual who uses a TDD
may call the Federal Information Relay Service at 1-800-877-8339
between 8 a.m. and 8 p.m., Eastern time, Monday through Friday.
Program Authority: 29 U.S.C. 762(b)(3).
(Catalog of Federal Domestic Assistance Number has not been
assigned)
Dated: March 24, 1998.
Judith E. Heumann,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 98-13398 Filed 5-19-98; 8:45 am]
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