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Monday, December 08, 2008

Kristin McSwain
Chief of Program Operations
Director AmeriCorps State/National

   

Update and FAQs on FY 2009 AmeriCorps Grant Funding

 

Dear Colleagues,

Following up on the note you just received from Nicola Goren, I am writing to give you an update and answer some questions on the status of funding for FY 2009 AmeriCorps State and National grants.

For FY 2009, the President requested $274 million for AmeriCorps State and National grants, a $17.3 million increase over the FY 2008 enacted level, to support 67,000 State and National members. The President also requested $132 million for Segal AmeriCorps Education Awards and funding for AmeriCorps VISTA and NCCC which all together support a total of 75,000 members in FY 2009. More details about this request are in our FY 2009 Congressional Budget Justification on our website.

As you know, the Corporation is operating under a Continuing Resolution through March 6, 2009. Several factors could influence the final outcome of the FY 2009 appropriation for the Corporation including the transition to a new Administration, passage of a full-year appropriation, extension of the current CR, and efforts to stimulate the economy.

Below is a set of FAQs to address some questions you may have regarding AmeriCorps State and National FY 2009 funding and the upcoming grants cycle. In addition to questions about this year’s competition, we know that Commissions and grantees are deeply concerned about the current economic crisis and the possibility of reduced federal and state funding. We are actively looking for ways to assist with these challenges and are interested in hearing from you about what you are experiencing and areas where you believe we can help. We plan to use a portion of the State Commission cluster calls scheduled for this week to begin these discussions. AmeriCorps National grantees will soon receive notification about a similar fact-finding call.

As we approach the grant submission deadline, we continue to advocate for the President’s budget and discuss the negative impacts that would occur if FY 2008 AmeriCorps grant funding were continued at the same level in FY 2009. If you have questions about this information, please contact your Program Officer.

Thank you for your continued commitment to national service.

In service,

Kristin McSwain

Frequently Asked Questions
AmeriCorps State and National Funding for FY2009

  1. What is the President’s FY 2009 budget request for AmeriCorps State and National grants?

    The President’s FY 2009 budget request for AmeriCorps grants is $274 million, which along with VISTA, NCCC and National Service Trust funding will support 75,000 members. The FY 2009 request includes a $17.3 million increase for AmeriCorps grants to enable the Corporation to successfully transition from two-year to one-year funding while maintaining approximately the same number of AmeriCorps members.
  2. Why does the transition from two-year to one-year funding require additional funding to support the same number of AmeriCorps members?

    In previous years, two-year funding allowed the Corporation to de-obligate unused grant funds and carry over unrequested grant funds for use in the second year of funding. Fiscal year 2009 is the first year in which those processes are not available.
  3. Is the level of funding for the 2006 Katrina and Rita disaster relief grants included in the FY 2009 budget request?

    No. In 2006, the Corporation recovered unused funds from prior grants and made 13 three-year, fully-funded grants to programs in response to Hurricanes Katrina and Rita. These programs are eligible to apply through their State Commission or as National Direct grantees on the same basis as other programs.
  4. What is the current status of the FY 2009 appropriation and the impact on AmeriCorps grants?

    We are currently operating under a Continuing Resolution at FY 2008 funding levels through March 6, 2009. No final decisions have been made by Congress concerning FY 2009 funding. Pending enactment of its appropriation, the Corporation’s planning for AmeriCorps State and National grants is based on several potential scenarios for FY 2009 funding:
    • An FY 2009 appropriation consistent with the President’s request of $274 million for AmeriCorps State and National grants would allow us to support approximately the same number of AmeriCorps members as FY 2008; or
    • An FY 2009 final appropriation of $256 million for AmeriCorps State and National grants - the same as FY 2008 - would result in approximately 3,000 fewer members for FY 2009.

Of course, final Congressional action may be different from either of these scenarios. Whatever final FY 2009 budget we are given, we will promptly advise you of its impact on the amounts available for the AmeriCorps State National grant competition for FY 2009.

  1. Why isn’t an FY 2009 appropriation at FY 2008 levels sufficient to maintain the same number of AmeriCorps members?
        
    In FY 2008, the Corporation was able to augment the $256 million provided by the annual appropriations bill with unused carryover funds and recoveries from the previous year. That practice is no longer available with one-year funding, which is why the Corporation requested an increase in AmeriCorps grant funds in its FY 2009 budget request submitted last February. If the FY 2008 funding level for grants is appropriated for FY 2009, there would be a reduction of approximately 3,000 AmeriCorps members.
        
  2. How will the nation’s economic crisis factor into funding decisions?
         
    We understand that that the current economic crisis is putting pressure on state budgets, private philanthropy, and other sources of revenue for nonprofits at the same time there is growing need. We are looking at ways to alleviate this situation and are convening a series of calls with program and Commission representatives in the coming weeks to identify flexibilities for programs operating in a very tough budget environment. We will report back on efforts we are undertaking.
        
  3. Will the delay in passing a budget affect the timing of the GARP process or your ability to approve grants?
         
    No. The impact is on the amount of funding available for the grants, not the timing.
        
  4. Would the level of funding available for commission administrative grants under the President's FY 2009 budget request be higher than the amounts which commissions applied for under the current continuing resolution?
        
    Yes. The President's budget requested $12,642,000 for commission administrative grants. Under the Continuing Resolution, commissions applied for administrative grants based on an annualized available amount of $11,790,000 (reflecting the Corporation’s enacted FY 2008 appropriation, without carry-over). If an FY 2009 appropriation consistent with the President's request is passed, then the Corporation will allow commissions to adjust their applications to take advantage of their higher allocations

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