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PHW THE WHITE HOUSE WASHINGTON September 21, 1973 MEMORANDUM FOR: THE PRESIDENT VIA: KEN COLE FROM: JIM CAVANAUGN SUBJECT: Manpower Revenue Sharing Decision Paper BACKGROUND In view of your earlier concern about public service employ- ment, we wanted to give you an assessment of where we are with the manpower revenue sharing proposal and receive your guidance on how we should proceed. You originally proposed a manpower revenue sharing program two years ago. When the Congress failed to act, you directed, in January, that the Secretary of Labor move towards implementing as much of the revenue sharing proposal as possible by adminis- trative action. The Department developed a set of regulations and began consultations with members of Congress as well as Governors and Mayors. This action triggered the Congress into seriously considering manpower revenue sharing legislation. CURRENT STATUS The Senate has passed a comprehensive manpower bill as well as a $1. 25 billion extension of the Emergency Employment Act. We can live with parts of the Senate Bill, but not with the Emergency Employment Act. The House Labor Committee is currently in the process of marking up a manpower bill. We have been advised by House Republicans that it will not be possible to obtain a Senate-House compromise manpower bill that is compatible with your policy on manpower revenue sharing unless we reverse our total opposition to a separate program of public service employment and accept a $250-300 million limited public service employment program tied into manpower revenue sharing. Secretary Brennan shares this view.

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    "ocrText": "PHW\nTHE WHITE HOUSE\nWASHINGTON\nSeptember 21, 1973\nMEMORANDUM FOR:\nTHE PRESIDENT\nVIA:\nKEN COLE\nFROM:\nJIM CAVANAUGN\nSUBJECT:\nManpower Revenue Sharing Decision Paper\nBACKGROUND\nIn view of your earlier concern about public service employ-\nment, we wanted to give you an assessment of where we are with\nthe manpower revenue sharing proposal and receive your guidance\non how we should proceed.\nYou originally proposed a manpower revenue sharing program two\nyears ago. When the Congress failed to act, you directed, in\nJanuary, that the Secretary of Labor move towards implementing\nas much of the revenue sharing proposal as possible by adminis-\ntrative action. The Department developed a set of regulations\nand began consultations with members of Congress as well as\nGovernors and Mayors.\nThis action triggered the Congress into seriously considering\nmanpower revenue sharing legislation.\nCURRENT STATUS\nThe Senate has passed a comprehensive manpower bill as well as\na $1. 25 billion extension of the Emergency Employment Act. We\ncan live with parts of the Senate Bill, but not with the\nEmergency Employment Act. The House Labor Committee is currently\nin the process of marking up a manpower bill. We have been\nadvised by House Republicans that it will not be possible to\nobtain a Senate-House compromise manpower bill that is compatible\nwith your policy on manpower revenue sharing unless we reverse\nour total opposition to a separate program of public service\nemployment and accept a $250-300 million limited public service\nemployment program tied into manpower revenue sharing.\nSecretary Brennan shares this view."
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