TESTIMONY
OF
SUMMER SPENCER, DIRECTOR

BEFORE

THE COMMITTEE ON WORKFORCE DEVELOPMENT AND GOVERNMENT OPERATIONS

THE HONORABLE
COUNCILMEMBER CAROL SCHWARTZ, CHAIR

PUBLIC HEARING ON

BILL 17-538, “OFFICE OF FIRST SOURCE COMPLIANCE ACT OF 2007”

MAY 28, 2008

Good afternoon Chairperson Schwartz, members, and staff of the Committee on Workforce Development and Government Operations.  I am Summer Spencer, Director of the Department of Employment Services (“DOES”).  Joining me today is Susan Gilbert, Associate Director of the Office of Employer Services.

I am here today to testify on behalf of Mayor Adrian Fenty regarding Bill 17-538, the “Office of First Source Compliance Act of 2007.”   DOES shares the vision of those who drafted this bill.  We fully support efforts to strengthen the monitoring, tracking, and compliance of beneficiaries of government-assisted projects by creating an Office of First Source Compliance.  As the Fenty Administration continues to create opportunities and incentives for developers and businesses to undertake major development projects, District residents should also benefit by receiving priority for employment on the projects.  

The combined support of the Mayor and the Council for the effective enforcement of First Source Agreements demonstrates the high level of importance that the District government as a whole places on this issue. As the proposed bill outlines, DOES is prepared to develop an “automated register” as an effective means of keeping timely and accurate records.  

Most importantly, we urge that the First Source program is allowed the opportunity for a complete and comprehensive review with the full engagement of the beneficiaries and other businesses in order for this well-intended program to provide the maximum advantage to District residents and businesses. To meet this end, DOES held one of three First Source Employer Forums in March 2008 as part of the FY08 Performance Plan.  This forum was the first step to gather the needed feedback about the strengths and weaknesses of the entire First Source program. 

We learned from this first forum that those businesses who have First Source agreements feel that in spite of the need for increased staff, the responsiveness and effectiveness of the DOES First Source staff is the program’s greatest success.  The greatest weakness, however, is our inability to match qualified candidates with the requirements of listed job vacancies.  Forum participants overwhelmingly stated that the job seekers referred to them need more “life skills,” customer service skills, and basic work skills in order to succeed in the workplace.  Employers are ready to offer District residents their own industry-specific training, but their failure to attract residents who are work-ready at a basic level severely impedes their ability to meet the 51% hiring requirement despite their strong partnership with DOES and their general good faith efforts, as the law currently requires.  Forum participants also repeatedly stated that they appreciate the outreach from DOES to listen to their concerns and provide suggestions.

DOES would like to continue in this positive direction and plans to hold additional forums to not only fully air the concerns of First Source beneficiaries but also to develop concrete, measureable outcomes and recommendations for improving the First Source program so that we can better serve our residents and businesses.

In sum, we believe that the continuance of these forums will best provide the needed expert advice that will produce the greatest positive impact on all components of the First Source program, including monitoring, compliance, and enforcement.  Our aim is for the Council to benefit from this invaluable feedback in order to create the most effective First Source program possible.

Thank you for the opportunity to testify on this important matter.  We look forward to continuing to work with this Committee to create strong First Source compliance legislation that will effectively benefit District residents and businesses alike.  

We are happy to address any questions you may have at this time.