Summary: The Department of Labor responded to the draft of a report which discussed problems with the planning, management, and implementation of the Labor Employment Security Automation Project and which recommended that Labor halt the expansion of the project until the problems were solved. Although Labor agreed with parts of the report, it strongly objected to the conclusions concerning the problems and their causes. Despite the disagreement by Labor with the report, the Administration's budget proposal for fiscal year (FY) 1980 provided for no expansion of the project and indicated that during FY 1979 and 1980 no agreements will be signed with additional states. In addition, evaluations will be used to determine the direction and scope of future automation.
A thorough review of the Labor response indicated that the positions contained in the original report were sound. While the actions outlined in the budget proposal and Labor recent letters, if carried out, appear to be steps toward implementing the report's recommendations, the nature of the initial response by Labor raises serious doubt about its commitment to these actions and its interest in solving the problems which it has recognized for years. Labor should reconsider how and to what extent it wishes to fund states to automate employment security operations. Recent budget proposals and the decision to halt the expansion of the project through the current and next fiscal years are encouraging signs that Labor recognizes the need to reevaluate the project in the light of known problems.
