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Thursday, January 17, 2008

CONTACT: Amy Borgstrom
Phone: 202-606-6930
Email: aborgstrom@cns.gov

   

Policy Update 7

 

Message from the Director: 2008 Appropriations Language Changes Match Requirement

On December 26, 2007, President Bush signed H.R. 2764, the Consolidated Appropriations Act for Fiscal 2008. This omnibus measure provides $856,331,000 for the Corporation and its programs for Fiscal 2008, including a 1.747 percent across-the-board rescission. For more information you can read the statutory language, explanatory statement, and an updated budget chart on the budget page of our website.

This Act includes an important change in how AmeriCorps State and National programs match federal funds. It replaces the 15% minimum member support and 33% minimum program operating match with a single overall minimum match of 24% for the first three years of funding. Starting with year 4, match gradually increases to 50% by year ten according to the schedule put into place through rulemaking in 2005.

These changes are being discussed by state grantees in cluster calls. AmeriCorps National will host a portfolio call Tuesday, January 22 from 2-3:30 EST to discuss the implications of the single match and answer questions.

What Does the Single Match Mean for My Program?

This year, applicants submitted budgets in compliance with the 15% minimum member support and 33% program operating match as in the past. During the clarification period, 3/27/08-5/1/08, applicants will have the opportunity to revise budgets to reflect the new single match requirement. eGrants will no longer generate an error message based on the 15% and 33% minimum at that time. The new single match can be applied only to 2008 new, recompete, and continuation applications.

We will be sending successful applicants more detailed guidance as that period approaches, and will also be producing an FAQ. Next year, the Notice and Application Budget Instructions will reflect the new single match.

How Does the 2008 Appropriations Act Describe the Single Match?

Here is the language on the new single match which appears in Section 407 of the appropriations act: “AmeriCorps programs receiving grants under the National Service Trust program shall meet an overall minimum share requirement of 24% for the first three years that they receive AmeriCorps funding, and thereafter shall meet the overall minimum share requirement as provided in section 2521.60 of title 45, Code of Federal Regulations, without regard to the operating costs match requirement in section 121(e) or the member support Federal share limitations in section 140 of the National and Community Service Act of 1990, and subject to partial waiver consistent with section 2521.70 of title 45, Code of Federal Regulations.”

Living Allowance Waiver for State Formula Professional Corps Programs

Section 140 (c) (2) of the NCSA states that a professional corps program that pays its members a living allowance or salary greater than the maximum allowable living allowance ($22,800) may not apply for funding through a state’s formula application process.

The 2008 appropriations language, for the first time, allows professional corps programs that pay more than the maximum living allowance to apply to the Corporation for a waiver of application of this statutory provision. All other rules and regulations pertaining to professional corps remain in effect (see § 2522.110 of the AmeriCorps regulations.)

To apply for a waiver of application of section 140 (c) (2) state commissions may simply include professional corps programs that exceed the maximum living allowance in your state formula request. This will be considered your request for the waiver. The Corporation’s award of your formula grant will be considered approval of the request for the waiver.

Reminder: 2008 Clarification Process

In 2008 the Corporation plans to award grants immediately following the grant selection announcement in May. Corporation program officers will contact applicants in order to seek clarification, resolve questions and issues, negotiate performance measures, and revise budgets as part of the pre-award review process. This will take place from March 24-April 28, 2008. Please plan to be available during this time. Failure to respond to requests for information in a timely fashion may result in the removal of applications from consideration.

Last Day to Comment on the Rule

January 18 is the last day to provide public comment on the new AmeriCorps rule. You will find attached a side-by-side document that describes the technical fixes and minor changes we are making through this rulemaking. Although this rulemaking is not as far-reaching as the 2005 rulemaking, we hope that you take the opportunity to carefully consider the provisions in the new rule, and let us know what you think. Please provide your comments via e-mail addressed to americorpsrulemaking@cns.gov or provide your comments, in writing to Amy Borgstrom, who is managing the docket.

Dates to Remember

January 18, 2008 Last day of public comment on the rule

January 31, 2008 State Admin/PDAT/Disability FSRs due

March 18-20, 2008 Financial Management Institute

March 24-April 28, 2008 Application clarification period

April 30, 2008 State and National FSRs due

May 11-18, 2008: AmeriCorps Week

June 1-3, 2008: National Conference, Atlanta

July 7, 2008, 5:00 pm EST State formula grants due

AMERICORPS RULEMAKING II Side by Side List of Changes

Topic

Current

Final Proposed rule

Member evaluations

Grantees must evaluate members at mid- and end of term.

Removes the mid-term evaluation requirement for those members who leave service early. Adds language to preamble about the structure and documentation of the evaluation. Adds language stating that completion of service hours isn’t necessary for satisfactory service and that release for cause is not a per se disqualification from serving a second term.

Performance measurement

Grantees are required to report on outputs at the end of the first year, outputs and intermediate outcomes at the end of the second year, and outputs, intermediate outcomes, and end outcomes by the end of year three.

Changes requirement so that grantees must report on outputs at the end of the first year and outputs and intermediate outcomes in years two or three, but are not required to report on end outcomes.

National service insignia

Restrictions are focused on grantees

Clarifies that the use of national service insignia is subject to Corporation approval.

False or misleading statements

Potential gaps in ability to recover funds improperly received.

Adds provision stating that an individual who makes a materially false or misleading statement is subject to having the benefit forfeited and the qualification revoked.

Inspector General access to grantee records

IG was not included in one government-wide regulation’s list of those with access to grantee records.

Adds IG to list.

State service plans

Regulations include overlapping requirements that go beyond statute

Codifies one list of requirements streamlined to match statute.

In addition to these substantive changes, the proposed rule will also codify long-standing grant provisions or other practices, and make technical changes in the following areas:

Topic

Final Proposed Rule

Definition of Participant

Adds “member” to regulations as synonymous with “participant.”

Prohibited Activities

Codifies voter registration drives in regulatory list of prohibited activities (omitted in earlier rulemaking).

Living Allowance Disbursement

Codifies long-standing rules relating to the distribution of the living allowance (not a wage, regular payments, no lump sum payment)

Living Allowance Waiver

Codifies long-standing permission for an individual to waive receipt of the living allowance

Civil Rights

Codifies notice requirements and language on the right to file a complaint.

State Commission Membership

Aligns State Commission membership requirements to the statute.

Prohibition on Split-funded Project

Clarifies definition of “same project” and codifies current practice of allowing applicants to submit more than one applicant for the same project with the understanding that only one may be funded.

Small state minimum and timeframe for formula requests (non regulatory issue)

Beginning in FY 2008, the deadline will be earlier. Any unrequested funds remaining after the deadline will be reallocated to small states whose initial allocations are less than $500,000 and for other authorized purposes, as appropriate.

What Do You Think?

How can we make this periodic update more useful? What other policy tools would be helpful? Contact aborgstrom@cns.gov with your ideas.

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