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PAD-83-44 1 (1983-06-08)

handle is hein.gao/gaobabmzp0001 and id is 1 raw text is: 

                      UNITED STATES GENERAL ACCOUNTING OFFICE I t ' -
                             WASHINGTON, D.C. 20548


PROGRAM ANALYSIS
   DIVISION
                                                    JUNE 8, 1983
       B-203090




       The Honorable Robert Dole                            111111 111111 11
       Chairman, Committee on Finance                          121623
       United States Senate

       Dear Mr. Chairman:

            Subject: iTargeted Jobs Tax Credit Program Activity
                      (GAO/PAD-83-44)

            As',requestedlin your letter of March 18, 1983, we are.ipro-
       viding updated information on the Targeted Jobs Tax Credit (TJTC)
       program. ,The enclosed appendix discusses in greater detail var-
       ious characteristics of this program based on data obtained from
       the Department of Labor. We used these data to construct a brief
       statistical profile of program activity and those served by the
       program. Furthermore, we analyzed how changes in the program
       resulting from the Economic Recovery Tax Act of 1981 (ERTA) have
       affected program activity, particularly in fiscal year (FY)
       1982. This information serves as a backdrop for updating our
       estimates of the TJTC take-up rate for economically disadvan-
       taged youth. 1/ We provided an estimate of the take-up rate for
       FY 1980 to the Subcommittee on Economic Growth, Employment, and
       Revenue Sharing in June 1981 (see GAO/PAD-81-73).

            Using the available data, we found that the TJTC program has
       focused on the young and economically disadvantaged job seeker.
       A large proportion of program certifications are for lower paying
       jobs, and are located in the southern States.

            Several important changes occurred in the program with the
       passage of ERTA. Prior to FY 1982, the largest target group
       served- by the program was cooperative education students. ERTA
       changed the eligibility rules so that only economically disadvan-
       taged co-op students could be eligible for hire under TJTC. Our
       ankysis suggests that this more narrow targeting of the program
       is the major factor underlying the sharp drop in TJTC certifica-
       tions in FY 1982.


       I/The take up rate is the ratio of certified hires under TJTC
         to an estimate of the population of eligible hires.


                                                                (971765)


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