"TAA grants are not charity. These funds are vital in addressing the negative effects of international trade on American workers," Senator Collins wrote in a letter to Labor Secretary Elaine Chao. "Workers in Maine who have been displaced by trade deserve the assistance we have promised them. The new distribution process being used must not lose sight of the mission of the program."
Senator Collins is concerned that Maine workers stand to lose at least one-third of the current level of TAA dollars, because of a new distribution formula that will make states compete for a bulk of the federal funding.
"The TAA program is a critical program for Maine. Should a shortage occur, the consequences would be severe for displaced workers throughout the state," said Senator Collins. "Over the past few years, demand to participate in Maine's TAA program has risen in response to the loss of manufacturing jobs in the state. In fact, Maine has lost the highest percentage of manufacturing jobs in the country since 1998. The result has been that Maine has experienced more than a 100 percent increase in TAA enrollments since 2000."
Prior to this year, TAA funding was distributed based on the total amounts requested by states to help dislocated workers. The Department of Labor made these need-based allocations on a quarterly basis. Now, the Department is adopting an annual allocation process that uses a set formula to distribute 75 percent of the total federal TAA funds. States will then have to compete for the remaining 25 percent when there are large, unexpected layoffs.
Under this new distribution process, Maine receives $3.1 million in Fiscal Year 2004, which is $1.5 million less than it received last year. Since Maine has committed most of its $3.1 million for dislocated workers who have already enrolled in the program, the state will now have to compete for funds to help the rest of the year's new enrollees.
"I ask that the Department place a high priority on Maine's TAA program as it considers the allocation of reserve funds," said Senator Collins. "Maine should, at a minimum, receive the same amount of funds it received last year. Considering the increased demand for the program, however, Maine should receive even more to cover the added costs it faces."