Proposed new rule for AmeriCorps: 60-day comment period

Posted by on August 13, 2004

Dear Colleagues,

The Corporation for National and Community Service recently published in the Federal Register a proposed rule for the AmeriCorps program. It is available now on our website at <a href="http://www.americorps.org">http://www.americorps.org</a>. We now enter into a 60-day comment period on the proposed rule that we hope will be as robust and informative as the pre-rulemaking discussion we engaged in this spring.

We want to take this opportunity to share the Corporation’s perspective about the proposed rule and address some issues surrounding sustainability. We start with three fundamental points:

1. The proposed rule represents the Corporation’s intent to make the AmeriCorps program stronger, increase its stability and predictability, and position it for continued growth.

2. The reforms contained in this proposal will resolve long-standing issues with the program – particularly in the area of sustainability.

3. We invite and expect feedback on ways to possibly strengthen the proposed rule.

In terms of what the proposed rule does, we think of it as falling into five categories:

1. Clarifies existing policy and provides predictability.
The proposed rule definitively establishes the cost per full-time-equivalent (FTE); it explicitly allows AmeriCorps members to engage in program resource development; it clarifies where paraprofessional requirements come into play; it codifies the cap on childcare payments; and it codifies current performance measure requirements.

2. Relieves burdens on, and expands support for, grantees.
The proposed rule significantly streamlines the grant continuation process and reduces the requirements for third-party evaluations.

3. Eases restrictions on state commissions.
The proposed rule reduces limits on state commissions directly operating programs, and it gives flexibility to state commissions to support subgrantees that might have difficulty meeting matching requirements.

4. Strengthens the competitive process.
The proposed rule clearly spells out selection criteria and better aligns criteria with elements that predict program success; the funding priorities are stronger and simpler; and the review process places more emphasis on outcomes.

5. Increases leverage of Federal dollars.
The proposed rule establishes a gradual and incremental match schedule; it asks state commissions to devise a sustainability approach; it makes cost-per-FTE a more meaningful factor in the selection process; and it offers assistance to organizations that might have difficulty meeting increased matching requirements.

We know that sustainability is a key issue for many of you. During the initial input period, many participants defined sustainability in broad terms. We agree that many forms of sustainability are important. That’s why we included many of the sustainability criteria identified by the field in our program selection criteria. However, a real focus on better leveraging Federal dollars by reducing the Federal share of costs must be a central component in a successful rule. The purpose is to make more resources available for increased national and community service, to help programs expand their access to non-Federal funding, to deepen and broaden grantees’ community ties, and to maximize the taxpayers’ return on investment over time.

Simply put, increased leveraging will mean more Americans meeting more needs in more communities. This approach also is consistent with directives from the President and Congress. In a recent Executive Order, the President directed the Corporation to "leverage Federal resources to maximize support from the private sector and from State and local governments," and each year since 1996 Congress has directed the Corporation to "increase significantly the level of matching funds and in-kind contributions provided by the private sector," and "reduce the total Federal costs per participant in all programs."

We believe these goals can be achieved without limiting the number of years an organization may receive funds; therefore, we have not included "sunsetting" provisions in the proposed rule. Grantees can and should contribute a higher share of program costs over time. So, we have proposed a reasonable and incremental matching schedule that is achievable by most, if not all, grantees and that requires programs receiving AmeriCorps State/National funding for ten years or more to gradually grow to a 50 percent aggregated match.

The match schedule we have devised is fair and incremental, and a good number of you are already meeting the most ambitious match requirement in the proposed rule. Even more of you are matching at a significantly higher level than you are required to report. The fact is, and this was reported in our pre-rulemaking meetings, organizations running AmeriCorps programs for ten years or more should be realizing significantly more administrative and program efficiency, and significantly deeper community support, than when they start out.

For some of you, these new requirements will largely be a matter of reporting what you are already doing. For most of you, this will require adding between 10 and 15 percent more match than you are currently reporting over the next seven to ten years. For the limited number of you who are at risk of being unable to meet this requirement, we have developed options to help your organizations build capacity and achieve the autonomy that comes with diverse funding sources. We have also identified mechanisms for working with programs that, despite best efforts, are unable to reach the requirement. I urge you to review the "Increase in grantee share of program costs" section of the Preamble of the proposed rule for more details on this assistance.

Any individual or organization is encouraged to submit written comments on the proposed rule. To ensure that comments are considered, they must be submitted within 60 calendar days. The best way to submit comments is via e-mail to [email protected].

At the conclusion of the comment period, the Corporation will review the input, make revisions as appropriate, and publish the final rule in the Federal Register. The final rule will address all comments received in the 60-day comment period and note any suggested changes from the comment period that have been incorporated into the final rule.

Then, to ensure the broadest input, we are scheduling additional conference calls and a series of five meetings around the country to seek public comment on the proposed rule, much as we did last spring before the rule was drafted. Additional information on the conference calls, public meetings, and how to submit written comments is available at the AmeriCorps website, <a href="http://www.americorps.org">http://www.americorps.org</a>. There, you will also find the proposed rule, a summary of its provisions, answers to Frequently Asked Questions, and other information.

President Bush has made strengthening and expanding national and community service a priority for his Administration. Under his leadership, the AmeriCorps program last year received record financing that will enable it to grow to 75,000 members this year – an increase of 50 percent. The President, with the Congress, has also called on AmeriCorps to institute reforms that will make the program even better and stronger.

As AmeriCorps enters its second decade, we believe that the balance struck in the proposed rule – which achieves long-sought reforms while taking into account the varying circumstances of the wide range of our grantees – will ensure a long and healthy future for national service. At the same time, we continue to be open to your ideas on how to strengthen the proposed rule, and the next 60 days are your opportunity to give us feedback. All of us at the Corporation and in AmeriCorps look forward to receiving your comments and to continuing to work together to keep this critical program on a strong pathway for future growth.

Sincerely,

David Eisner
Chief Executive Officer
Corporation for National and Community Service

Rosie K. Mauk
Director of AmeriCorps