[Congressional Record (Bound Edition), Volume 149 (2003), Part 11]
[Senate]
[Pages 15356-15358]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   STRENGTHEN AMERICORPS PROGRAM ACT

  Mr. GRASSLEY. Madam President, in regard to S. 1276, I ask unanimous 
consent that the Senate immediately proceed to this bill, which was 
introduced earlier today and is being held at the desk.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 1276) to improve the manner in which the 
     Corporation for National and Community Service approves, and 
     records obligations relating to, national service positions.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. BOND. Madam President, I rise today to support legislation that 
will strengthen the Corporation for National and Community Service's 
AmeriCorps program. The Strengthen AmeriCorps Program Act of 2003 is a 
bipartisan bill that I introduce with my colleague and good friend, 
Senator Barbara Mikulski, and a number of my other colleagues. As the 
ranking member and chair of the Corporation's appropriations committee 
and members of the authorizing committee, Senator Mikulski and I 
believe that this bill will not only address the Corporation's 
accounting problems, but more importantly, it will protect and expand 
volunteer service opportunities across our Nation.
  Many of my colleagues have heard from their constituents and the 
media in recent weeks about the potential cuts to the AmeriCorps 
program. This bill addresses those concerns and the long-standing 
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 our bill, the Corporation 
would be able to enroll about 50,000 AmeriCorps members, without the 
need for additional funds.
  As many of my colleagues know, the President has asked every American 
to volunteer in their communities and has made the AmeriCorps program a 
central vehicle in meeting volunteer needs. I support the President's 
call to service and if harnessed in the right fashion, the AmeriCorps 
program can play an important and effective role in improving the lives 
of many Americans and communities it serves.
  The Corporation, unfortunately, has been plagued by significant and 
long-standing management problems that have been neglected for several 
years. One notable result of this neglect has been the inappropriate 
and illegal practice of enrolling more AmeriCorps members than the 
Corporation had budgeted. According to the Corporation's Inspector 
General, the number of approved AmeriCorps volunteer positions for 
program years 2000, 2001, and 2002, were approximately 59,000, 61,000, 
and 67,000, respectively, even though its budget estimates were based 
on enrollment levels that were around 50,000. Last year, the 
Corporation over-enrolled the AmeriCorps program by more than 20,000. 
Fortunately, the VA-HUD and Independent Agencies Appropriations 
Subcommittees were able to provide $43 million more than requested in 
the fiscal year 2003 appropriations bill to meet the needs of these 
members and more. Because of continued poor budgeting practices, the 
VA-HUD Subcommittee also approved another $64 million in a deficiency 
appropriation in the fiscal year 2003 supplemental appropriations to 
cover additional shortfalls.
  When the over-enrollment problem first surfaced, I immediately asked 
the General Accounting Office 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, I asked the 
GAO's Comptroller General to review the Corporation's underlying 
statute to determine whether the Corporation's practices complied with 
this law and other fiscal laws such as the Antideficiency Act.
  Both the GAO and the IG found that the Corporation did not comply 
with the law by incorrectly recording its funding obligations. In a 
statement for the record for the VA-HUD and Independent Agencies 
Appropriations Subcommittee hearing on April 10, 2003, 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.
  The GAO also found that the Corporation was not following the law in 
recording its legal liabilities. The GAO's finding is described in the 
Comptroller General's two legal opinions that were issued on April 9, 
2003--B-300480, and June 6, 2003--B-300480.2. The first opinion 
concluded that the Corporation incurs a legal liability for the award 
of educational benefits of AmeriCorps participants when it enters into 
a grant agreement. At the time it enters a grant agreement, the 
Corporation approves a specified number of new participants in the 
AmeriCorps program. By this action:

       the Corporation incurs a legal duty that once fully 
     matured, by action of the grantee and participants outside 
     the Corporation's control, will require the Corporation to 
     pay education benefits to qualified participants from the 
     National Service Trust.

  The Comptroller General opinion further states that as:

       the Corporation incurs an obligation for education 
     benefits, it must record the obligation against the budget 
     authority available in the Trust.

  In other words, to ensure compliance with the law, the Corporation 
must record and track its obligations based on the value of the 
educational award multiplied by all approved positions.
  We understand that recording obligations based on the approved level 
of AmeriCorps members in the program does not reflect the true 
performance of the program. We know from historical data that not all 
AmeriCorps volunteers successfully complete service. We also know that 
not all AmeriCorps members who successfully complete service use their 
educational award benefit. Accordingly, this bill recognizes the 
realities of the AmeriCorps program and allows the Corporation to 
maximize the number of AmeriCorps members that can participate in the 
program.
  In short, the bill allows the Corporation to fund AmeriCorps grants 
based on estimates of the number of members who will likely complete 
and use their education award. Further, the bill requires an annual 
actuarial audit of the National Service Trust to ensure that the 
Federal Government is able to meet its liabilities. The bill also 
requires the chief executive officer to certify that the Corporation 
has properly recorded and tracked its obligations.
  To ensure that the AmeriCorps program is accountable to the taxpayer 
and its volunteers, it is our expectation that the Corporation will use 
conservative assumptions in developing its funding formula. This 
especially is important since the Corporation has repeatedly failed to 
meet funding obligations resulting in actions by the Congress to 
provide additional funding, including a deficiency appropriation. While 
the program has been in place for about 10 years, there is little data 
on the performance of the program. Until there is reliable data, I 
strongly believe that the Corporation should assume a 100 percent 
enrollment rate for every volunteer slot approved in the grant 
agreements. I also believe that the Corporation should assume at least

[[Page 15357]]

an 80 percent earnings rate for the program and at least an 80 percent 
education award usage rate. Further, because of poor data, the bill 
requires a central reserve fund to give the Corporation an extra 
cushion in case the actual usage rate exceeds the assumptions used in 
the formula.
  It is my hope that we can pass this legislation as quickly as 
possible. This legislation provides clarification for the Corporation 
in determining grant award allocations to its grantees and the states. 
Without this legislation, uncertainty and disagreement will delay and 
limit the enrollment of AmeriCorps volunteers. Considering the demand 
and the need for this program, we cannot afford to wait.
  We designed this legislation with input from the administration. I 
think it is a reasonable and fair approach to address this issue. It 
mitigates harm to AmeriCorps programs in a manner that will ensure 
accountability and fiscal integrity in the programs. Keeping in mind 
the problems identified by the auditors, which led to the enrollment 
freeze last November, we designed this legislation to ensure that we do 
not repeat those past mistakes. The enrollment freeze was an 
unfortunate but avoidable mistake if the Corporation had properly 
managed and monitored its programs.
  Finally, we need to put these enrollment issues behind us. This 
program has had a difficult and star-crossed history, and it is 
unfortunate that we are here in June revisiting the implementation of 
the program to ensure both accountability and credibility. We need to 
ensure that the State and local programs are meeting both program 
requirements and community needs.
  Before closing, I want to raise a technical issue regarding the 
enrollment cap of 50,000 AmeriCorps members. The Corporation enrolls 
members based on full-time equivalent or FTE levels since some 
AmeriCorps members serve part-time and others serve full-time. The cap 
should be based on FTE levels so that it is consistent with normal 
AmeriCorps business practices.
  I urge my colleagues to support this legislation and pass it as 
quickly as possible. Senator Mikulski and I have tried to construct 
this bill in a thoughtful and fair manner to address the concerns about 
the program. This bill ensures that volunteers across this Nation and 
the taxpayers will have confidence in the AmeriCorps program.
  Mr. KENNEDY. Madam President, it is a privilege to join my colleagues 
Senator Mikulski and Senator Bond on this legislation to head off the 
cuts in AmeriCorps announced this week that will be so devastating to 
so many Americorps programs in so many States.
  Our bill directs the Corporation for National Service to calculate 
membership by a reasonable formula, and ensure that every person who 
commits to a year of service to their community in AmeriCorps will 
receive the education award.
  The fiscal mismanagement at the Corporation is a serious continuing 
problem, but State and local programs should not have to pay for those 
mistakes by slashing their programs. Today, we take the first step in 
preserving service opportunities for this year and the future. We will 
continue to do all we can to increase the funds available, so that 
programs do not suffer because the Corporation over-enrolled 20,000 
members last year. That over-enrollment is a clear signal that 
Americorps is reviving the spirit of volunteerism in our country and we 
should make these opportunities available for people of all ages to 
serve their communities. In this struggling economy, too many after-
school and summer school programs are being cut back, and health 
clinics and food kitchens are serving more people than ever. AmeriCorps 
helps these programs help others.
  I commend Senator Mikulski and Senator Bond for their impressive 
bipartisan leadership on this issue, and I urge the Senate to join us 
in maintaining these successful programs.
  Mr. GRASSLEY. I ask unanimous consent that the bill be read the third 
time and passed, the motion to reconsider be laid upon the table, and 
that any statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 1276) was read the third time and passed, as follows:

                                S. 1276

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Strengthen AmeriCorps 
     Program Act''.

     SEC. 2. PROCESS OF APPROVAL OF NATIONAL SERVICE POSITIONS.

       (a) Definitions.--In this Act, the terms ``approved 
     national service position'' and ``Corporation'' have the 
     meanings given the terms in section 101 of the National and 
     Community Service Act of 1990 (42 U.S.C. 12511).
       (b) Timing and Recording Requirements.--
       (1) In general.--Notwithstanding subtitles C and D of title 
     I of the National and Community Service Act of 1990 (42 
     U.S.C. 12571 et seq., 12601 et seq.), and any other provision 
     of law, in approving a position as an approved national 
     service position, the Corporation--
       (A) shall approve the position at the time the 
     Corporation--
       (i) enters into an enforceable agreement with an individual 
     participant to serve in a program carried out under subtitle 
     E of title I of that Act (42 U.S.C. 12611 et seq.) or title I 
     of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 
     et seq.); or
       (ii) except as provided in clause (i), awards a grant to 
     (or enters into a contract or cooperative agreement with) an 
     entity to carry out a program for which such a position may 
     be approved under section 123 of the National and Community 
     Service Act of 1990 (42 U.S.C. 12573); and
       (B) shall record as an obligation an estimate of the net 
     present value of the national service educational award 
     associated with the position, based on a formula that takes 
     into consideration historical rates of enrollment in such a 
     program, and of earning and using national service 
     educational awards for such a program.
       (2) Formula.--In determining the formula described in 
     paragraph (1)(B), the Corporation shall consult with the 
     Director of the Congressional Budget Office.
       (3) Certification report.--The Chief Executive Officer of 
     the Corporation shall annually prepare and submit to Congress 
     a report that contains a certification that the Corporation 
     is in compliance with the requirements of paragraph (1).
       (4) Approval.--The requirements of this subsection shall 
     apply to each approved national service position that the 
     Corporation approves--
       (A) during fiscal year 2003 (before or after the date of 
     enactment of this Act); and
       (B) during any subsequent fiscal year.
       (c) Reserve Account.--
       (1) Establishment and contents.--
       (A) Establishment.--Notwithstanding subtitles C and D of 
     title I of the National and Community Service Act of 1990 (42 
     U.S.C. 12571 et seq., 12601 et seq.), and any other provision 
     of law, within the National Service Trust established under 
     section 145 of the National and Community Service Act of 1990 
     (42 U.S.C. 12601), the Corporation shall establish a reserve 
     account.
       (B) Contents.--To ensure the availability of adequate funds 
     to support the awards of approved national service positions 
     for each fiscal year, the Corporation shall place in the 
     account--
       (i) during fiscal year 2003, a portion of the funds that 
     were appropriated for fiscal year 2003 or a previous fiscal 
     year under section 501(a)(2) (42 U.S.C. 12681(a)(2)), were 
     made available to carry out subtitle C or D of title I of 
     that Act, and remain available; and
       (ii) during fiscal year 2004 or a subsequent fiscal year, a 
     portion of the funds that were appropriated for that fiscal 
     year under section 501(a)(2) and were made available to carry 
     out subtitle C or D of title I of that Act.
       (2) Obligation.--The Corporation shall not obligate the 
     funds in the reserve account until the Corporation--
       (A) determines that the funds will not be needed for the 
     payment of national service educational awards associated 
     with previously approved national service positions; or
       (B) obligates the funds for the payment of such awards for 
     such previously approved national service positions.
       (d) Audits.--The accounts of the Corporation relating to 
     the appropriated funds for approved national service 
     positions, and the records demonstrating the manner in which 
     the Corporation has recorded estimates described in 
     subsection (b)(1)(B) as obligations, shall be audited 
     annually by independent certified public accountants or 
     independent licensed public accountants certified or licensed 
     by a regulatory authority of a State or other political 
     subdivision of the United States in accordance with generally 
     accepted auditing standards. A report containing the results 
     of each such independent audit shall be included in the 
     annual report required by subsection (b)(3).

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       (e) Availability of Amounts.--Except as provided in 
     subsection (c), all amounts included in the National Service 
     Trust under paragraphs (1), (2), and (3) of section 145(a) of 
     the National and Community Service Act of 1990 (42 U.S.C. 
     12601(a)) shall be available for payments of national service 
     educational awards under section 148 of that Act (42 U.S.C. 
     12604).

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