M E M O R A N D U M
TO: Reporters and Editors
RE: CIETC salaries
DA: June 15. 2006
Senator Chuck Grassley today released the following statement after a provision to cap salaries for individuals under the Employment and Training Administration was included in the supplemental appropriations bill that passed the Senate today. This action was taken in response to the Central Iowa Employment Training Consortium salary abuses. The bill will now go to the President for his signature.
Senators Grassley and Tom Harkin had introduced the amendment to the supplemental appropriations bill that set a national maximum salary level for individuals employed by programs funded under the Employment and Training Administration. The amendment sets a base salary and bonuses cap at the Federal Executive Level II (maximum is $165,200). This cap applies to funds appropriated for fiscal 2006, and prior year funds that have yet to be expended. The amendment also allows states to set a lower total compensation level.
In early April, Grassley, along with Congressman Jim Nussle sent a letter to Secretary of Labor Elaine Chao asking for a detailed accounting of the events leading up to the discovery of excessive salaries given to three employees at the training center. They said that in light of a 2004 Department of Labor audit that found executive compensation to be a problem at the Center, it was important to know what action, if any, was taken to prevent it.
Here is Grassley’s comment.
“The excessive salaries at the Central Iowa Employment Training Consortium that have come to light since the investigation began made this provision necessary. We can’t sit by and watch taxpayers line the pockets of executives of an agency that’s mission is to provide help to Iowans who are looking for jobs.”