Before the assembled Members of Congress, Supreme Court, the Cabinet, diplomatic corps, and invited guests, President Bush in Tuesday's State of the Union address delivered a powerful statement resolving to fight terrorists around the world, protect our homeland, and turn the economy around. He also called on our citizens to continue the growth of a "a new culture of responsibility." Referring to the positive response of the nation in the aftermath of the September 11 murders, the President said, "...In the sacrifice of soldiers, the fierce brotherhood of firefighters, and the bravery and generosity of ordinary citizens, we have glimpsed what a new culture of responsibility could look like. We want to be a nation that serves goals larger than self. We've been offered a unique opportunity, and we must not let this moment pass."
The President urged all Americans "...to commit at least two years -- 4,000 hours over the rest of your lifetime -- to the service of your neighbors and your nation." In keeping with that theme, he announced a number of new presidential initiatives and modifications of existing programs, including more funding, to encourage greater civic involvement and engagement in service activities affecting a wide-range of national needs that can be met through volunteer work.
Sharp Increase Proposed in FWS Community Service Requirement
Among those new initiatives the Administration is proposing is one to modify the Federal Work-Study community service requirement. Currently, postsecondary institutions are required to use no less than 7% of their FWS funds to compensate students for community service jobs with at least one tutoring or family literacy project. Under Bush's proposal, which will need congressional action to implement, the current community service requirements would be modified so that, as the background document states on page 9: "Every college and university will be required to devote 50% of its Federal Work Study funds to community service...and specify that in any given year at least 5% of the students would be expected to work in fields of public safety, public health and emergency preparedness. This would mean that an additional 250,000 to 300,000 students would serve an average of 10 hours a week in non-profit organizations across the country." On page 27 of the document it states, "The proposal will include incentives for institutions of higher education to implement these changes, which will occur over time."
Among the questions left unanswered by the available documents are how the FWS changes will be made or implemented, what incentives schools might receive, or the length of the phase-in to 50%. Further details on the FWS proposal may be forthcoming in the Administration's FY 2003 budget proposal, which is scheduled to be released on Monday, February 4; but it's also possible that details may be released for weeks or months.
In December, Senators Bayh (D-IN) and McCain (R-AZ) introduced S. 1792, the Call to Service Act of 2001. That legislation contained many of the proposals advocated by the President in this State of the Union address; however, S. 1792 phased-in additional community service through FY 2011 to a level of 25% and would make Americorps benefits non-taxable. (NOTE: Bill language for the above two provision may be found in sections 131 and 132 of S. 1792.) Reps. Ford (D-TN) and Osborne (R-NE) have introduced similar legislation in the House as H.R. 3465.
Obviously, before the President's plan becomes law, further details need to be released and congressional legislative action needs to be completed. As financial aid administrators, we recognize from past experience that it will be difficult to derail an idea as simple and, on the face of it, as politically irresistible as the President's FWS proposal concept. We will not be surprised to see a number of college presidents endorse outright the FWS proposal. Consequently, NASFAA is asking for your assistance: please tell us your concerns about this idea, whether those concerns are operational, concerns about implementation, ideas about a phase-in, student concerns, ideas on incentives for schools, or other concerns or ideas you may have.
Already congressional staff has asked NASFAA what we believe needs to be corrected in the Bayh/McCain and Ford/Osborne bills. Certainly, they will want our views on the President's plan. We have discussed the possibility of creating a separate program for community service that potentially could be open to all postsecondary students, regardless on their financial need, and we have also discussed eliminating the mandatory percentage for community service, substituting incentives for schools that wish to accomplish the same goals. There are no doubt other ideas that you have as well, and that is why we want to hear from you soon. Please send your comments, concerns and ideas by February 28 to NASFAA at govtaffairs@NASFAA.org.
Democratic Response Proposes Student Aid Tax Break
House Democratic Majority Leader Dick Gephardt of Missouri delivered his party's response to the President's address and mentioned a student aid tax proposal. Gephardt recommended "We want to say to every student who wants to go to college and every worker who wants to update their skills: the first $10,000 of your education should be tax deductible."
By Dallas Martin, NASFAA
Posted January 31, 2002 on the NASFAA Web Site www.nasfaa.org
Copyright 2002, National Association of Student Financial Aid Administrators
Permission to reprint, distribute, and/or post on Web sites is granted to NASFAA Members
Please submit questions or comments to govtaffairs@NASFAA.org
