[Congressional Record Volume 149, Number 90 (Wednesday, June 18, 2003)]
[Senate]
[Pages S8010-S8012]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

  Ms. MIKULSKI. Mr. President, what a mess we have at the Corporation 
for National and Community Service. The Congress has funded 50,000 
AmeriCorps volunteers, as we have year after year. But, guess what. The 
corporation has enrolled 70,000 volunteers. It seems the corporation 
cannot count. As a result, there will be fewer volunteers this year.
  Fortunately, because of a bipartisan collegial relationship on the 
VA/HUD subcommittee, Senator Bond and I are going to fix this problem 
for the volunteers and for the communities they serve. We are 
introducing something called the Strengthen AmeriCorps Program Act, 
and, frankly, it gives AmeriCorps the fix it needs to straighten out 
the mess they created.
  This bill is simple and straightforward. It gives the AmeriCorps 
Program the flexibility within the current funding for 2003 so there 
can be 50,000 AmeriCorps volunteers this year.
  I have been reading in press reports, but most of all I have been 
getting calls from constituents and other Senators who support 
AmeriCorps. What are they concerned about? They are concerned that it 
appears there will be cuts by as much as 15,000 volunteers. I am 
concerned about that, too, and the effects on our communities and the 
young people who serve them while earning a scholarship for college.
  I believe the public has a right to know what happened. So I want to 
explain to advocates and my colleagues what is happening and why the 
corporation has cut AmeriCorps. Congress has not cut AmeriCorps. It is 
because there is a persistent pattern of mismanagement at AmeriCorps. 
The corporation has over-enrolled 20,000 volunteers. When you make a 
mistake of 20,000 it is not a mistake, it is mismanagement. Two 
thousand would have been a mistake; 20,000 is mismanagement. The 
corporation has violated the law, mismanaged taxpayers dollars, and 
created uncertainty for our volunteers and our communities.

  In April, at the VA/HUD subcommittee, I called on the National 
Service CEO, Dr. Leslie Lenkowsky, to fix the problem. He promised he 
would do that by June 1. But, guess what. He called on May 30 and said 
he just could not do it. Then out came the shrinking of the number of 
volunteers, and out came the blaming on Congress. Instead of fixing the 
problem, he blamed Congress. I wish the corporation was as good at 
accounting as it is blaming. They had 10 weeks to get their act 
together and they did not do it.
  I was very stern with Dr. Lenkowsky and the Board of Directors at the 
hearing. I must say I thank the Board Chairman, Mr. Stephen Goldsmith, 
for responding constructively to the criticism of myself and other 
Members of the Congress. They took it to heart. They are beginning to 
reform national service. They are doing due diligence. They are putting 
more time into the oversight than, frankly, Dr. Lenkowsky.
  Dr. Lenkowsky is the Chief Executive. He has failed to respond to the 
situation, failed to respond to the subcommittee request, failed 
volunteers, failed communities, and in the schools I went to when you 
get that many ``Fs'' you just flunk out.
  Today, I am asking Dr. Lenkowsky to resign. I am really sorry we have 
gotten to this point, but we cannot continue this. I think if we are 
going to have a national service program, we need to have a national 
service program that serves the Nation and follows the directives of 
the Congress.
  We have worked on a bipartisan basis in this subcommittee year after 
year after year. We saved this program. It is usually zeroed out in the 
House. It is a gimmick to get us to rescue it. And now, once again, 
thanks to the leadership and constructive relationship with Senator 
Bond, we are going to strengthen AmeriCorps. Without our cooperation 
and leadership at VA/HUD, AmeriCorps wouldn't even be here. So

[[Page S8011]]

we need to pass the Strengthen AmeriCorps Program quickly. It is an 
accounting fix that is certified and approved by OMB and GAO.
  I support our President's call to national service. I want to work 
with President Bush in a bipartisan way to take national service into a 
new century. That is why I have worked with Senator McCain, Senator 
Bayh, and others to do that. Most of all, I want to work with my 
colleague Senator Bond, once again, as we always have, to sustain 
national service. Now we have legislation to clean up the mess that the 
corporation had. But the only way I think the corporation is going to 
get any momentum is if its current executive either steps aside or 
steps down.
  I hope Congress moves this bill in a matter of days. The Nation needs 
it because the volunteers need it and the communities need the 
volunteers.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Missouri.
  Mr. BOND. Mr. President, it is a real pleasure today to rise to join 
my colleague and good friend, the Senator from Maryland, in introducing 
legislation that will strengthen the Corporation for National Community 
Service, the AmeriCorps Program.
  I assure my colleagues the Strengthen AmeriCorps Act of 2003 is a 
bipartisan bill introduced with Senator Mikulski as ranking member, and 
the chair of the Appropriations Committee and members of the 
authorizing committee. The Senator from Maryland and I believe the bill 
will not only address some of the corporation's accounting problems 
but, more importantly, it will protect and expand volunteer service 
opportunities across the Nation.
  Many of my colleagues--I wouldn't be surprised if all of our 
colleagues--have heard from their constituents and the media in recent 
weeks about the potential cuts to the AmeriCorps Program. This bill 
addresses, to the best extent we can, those concerns--some have 
longstanding concerns about the management and financial problems of 
the corporation--by creating a budgeting mechanism that ensures the 
corporation has the funds needed to pay educational awards.
  Under this bill, the corporation would be able to enroll about 50,000 
AmeriCorps members without the need for additional funds. Looking at 
the allocation that is available for the VA/HUD subcommittee, 
additional funds are not a very great prospect at this time, I regret 
to say. We have to deal with what OMB has given us and the allocations 
we received from our distinguished and all-knowing senior colleagues on 
the Appropriations Committee.
  It is truly unfortunate--my colleague has already referred to it--
that there has been a plague of significant and longstanding management 
problems, neglected for many years, in the corporation. One notable 
result of this neglect has been the inappropriate and illegal practice 
of enrolling more AmeriCorps members than the corporation had budgeted. 
One would think a group of dedicated public servants running the 
AmeriCorps Program could count. They have not.
  Last year, the corporation overenrolled the AmeriCorps Program by 
more than 20,000 people. They have done it year after year, the year 
before and the year before that and the year before that. They came to 
the VA/HUD and Independent Agencies Appropriations Committee to bail 
them out. We were able to provide $43 million more than requested in 
the 2003 appropriations bill to meet the needs of these members and 
more. But because of continued poor budgeting practices, the VA/HUD 
subcommittee also approved another $64 million in deficiency 
appropriations in the 2003 supplemental appropriations to cover 
additional shortfalls.
  When the overenrollment problem first surfaced, we asked the GAO and 
the corporation's inspector general to review the accounting practices 
of the corporation and its internal controls to determine the causes of 
this problem. Further, we asked the GAO's Comptroller General to review 
the corporation's underlying statute to determine whether the 
corporation's practice complied with the law, and other fiscal laws 
such as the Anti-Deficiency Act.
  Both the General Accounting Office and the IG found the corporation 
did not comply with the law by incorrectly recording its funding 
obligation. GAO identified several factors that led to the 
corporation's incorrect accounting practice. The factors included 
inappropriate obligation practices, little or no communication among 
key corporation executives, too much flexibility given to grantees 
regarding enrollments, and unreliable data on the number of AmeriCorps 
participants.
  That is the official word. My unofficial word is they can't count.
  GAO also found that the corporation was not following the law in 
recording its legal liabilities.
  This bill responds to the problems identified by the auditors and 
allows the corporation to maximize the number of AmeriCorps enrollees 
that can participate in the program.
  In short, the bill allows the corporation to fund AmeriCorps grants 
based on the estimate of the number of members who will likely complete 
and use their education award to ensure that the AmeriCorps Program is 
accountable to taxpayers and the volunteers.
  It is our expectation the corporation will use conservative 
assumptions in developing its funding formula. This is especially 
important since the corporation has repeatedly failed to meet funding 
obligations resulting in action by Congress to provide additional 
funding, including deficiency appropriations.
  I serve notice here and now: Don't come back to us if you screw it up 
again. You are not going to get bailed out.
  Further, because of poor data, the bill requires the central reserve 
fund to give the corporation an extra cushion in case the actual usage 
rate exceeds the assumption used in the formulary.
  We believe we should pass this legislation as quickly as possible. It 
provides for clarification of the corporation in determining grant 
award allocations to its grantees in the States. Without this 
legislation, uncertainty and disagreement will delay and limit the 
enrollment of AmeriCorps volunteers.
  Considering the demand and need for the program, we cannot afford to 
wait. We designed this legislation with significant input from the 
administration. This is one of the President's top priorities. It has, 
I can assure you, their undivided attention.
  We think it is a reasonable and fair approach to the issue. It 
mitigates harm to the AmeriCorps Program in a manner that will ensure 
accountability and fiscal integrity.
  Keeping in mind the problems identified by the auditors which led to 
the enrollee freeze last November, we designed this legislation to 
ensure that we do not repeat those past mistakes. The enrollee freeze 
was unfortunate. It was an avoidable mistake, if the corporation had 
properly managed and monitored its programs.
  We need to put these enrollment issues behind us. This program has 
had a difficult and star-crossed history. It is unfortunate. And we are 
here in June revisiting the implementation of the program to ensure 
both accountability and credibility. We need to ensure the State and 
local programs are meeting both the program requirements and the 
community needs.
  I will tell my colleagues the corporation has hired a very strong CFO 
in getting a handle on these problems. And they do have the full 
attention of not only the administration through OMB but GAO and the 
IG.
  I urge my colleagues to support this legislation.
  I ask unanimous consent that the bill I wish to introduce on behalf 
of myself, the Senator from Maryland, and Senators Specter, Collins, 
Alexander, Santorum, and Kennedy be held at the desk.
  The PRESIDING OFFICER. Is there objection?
  Mr. GREGG. Mr. President, reserving the right to object, as the 
Senator knows, by holding the bill at the desk, it will not be referred 
to the committee of jurisdiction which I happen to chair, and which the 
Senator from Missouri is a member, as is the Senator from Maryland, and 
whose abilities I greatly respect. Obviously, I always have 
reservations about not having a bill referred to the proper committee 
of jurisdiction and have it step outside the proper process in the 
Senate, which is the bill should go to the committee of jurisdiction.

[[Page S8012]]

  But I believe the Senators from Missouri and Maryland are addressing 
a critical problem, and one for which, as appropriators, they have a 
unique responsibility. This issue has to be resolved. I hope in 
resolving it we can also address issues such as the Corporation of 
National Service, which is a very strong organization, and which 
because of the mismanagement of these funds may be cut out of the 
funding process.
  But I am not going to make the objection which logically a chairman 
should make to this type of request of holding it at the desk because I 
do think the Senators from Maryland and Missouri are doing very 
excellent work here, and it needs to be passed quickly. Therefore, I am 
willing to forego the committee of jurisdiction to get this bill 
through.
  I congratulate Senators for bringing the matter to the attention of 
the Senate.
  The PRESIDING OFFICER. Is there objection to the unanimous consent 
request? Without objection, it is so ordered.
  Mr. BOND. Mr. President, I express my deep appreciation to the 
chairman of the committee. We have shared this with the staff. But it 
was done on a very tight time schedule. I apologize to him for not 
being able to talk with him directly about it. I assure him it is a 
brief bill. If he has any questions, we will be happy to work with him.
  I hope we can bring it up as quickly as possible because of the 
compelling nature of resolving this problem. If we can get it passed 
quickly, I will be happy to make a note of the particular organization 
in which he is interested and ensure that our friends at the 
Corporation for National Service know about the high priority the 
chairman of the authorizing committee places on this organization.
  Ms. MIKULSKI. Mr. President, I, too, want to express my appreciation 
to the chairman of the HELP Committee, Senator Gregg. I think it is 
gracious of him to let us keep the bill at the desk knowing the urgency 
of the need to test it.
  I think the point he raises about the need for regular oversight on 
national service is well taken. I look forward to participating in that 
hearing. I thank him for his courtesy and for his sensitivity to the 
urgency of the situation and his commitments regarding volunteers.
  Mr. GREGG. Mr. President, if the Senator will yield, I will simply 
say I am always courteous to appropriators.
  The PRESIDING OFFICER. The Senator from Illinois is recognized.
  Mr. DURBIN. Mr. President, I understand there was a unanimous consent 
request that the Senator from New Hampshire be recognized. Is that 
right?
  The PRESIDING OFFICER. The Senator is correct.
  Mr. GREGG. Mr. President, if the Senator will yield, how much time 
does the Senator need? I would be happy to yield on my time.
  The PRESIDING OFFICER. Is there objection? Without objection, it is 
so ordered.
  Mr. DURBIN. Mr. President, I express my appreciation to the Senator 
from New Hampshire.

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