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FOIA Number: 2013-0661-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: Legislative Affairs Series/Staff Member: Jack Lew Subseries: OA/ID Number: 2392 FolderID: Folder Title: [National Service Proposal-Comments on Discussion Outline, 3/93] Stack: Row: Section: Shelf: Position: S 25 7 10 3 Clinton National Service Proposal Discussion Outline The President's call to service extends from the youngest elementary students to our oldest citizens, and includes no system Hard , everything from part-time volunteer activities to full-time public service jobs. Toward this end, the President supports funding for service programs involving school-age youth and senior citizens, as well as professional corps programs such as in all the Police Corps and Teacher Corps designed to attract top candidates to public service jobs. State The centerpiece of the President's proposal is a national lever service program that will make it possible for college graduates and others to perform needed services in their communities by making it easier to pay back their student loans. All students will have the option of repaying their loans with a small percentage of their income over time, removing a significant Elans obstacle to low-paying careers in public service. Some will have the opportunity to serve in national service positions in the areas of education, human services, environment, and public safety. This program is outlined below. should senie A. National Service Positions twoyl Types of Placements: States and the federal government may stated ve senie approve placements in youth corps, specialized service corps, leaving individual placements in non-profit organizations (through VISTA or nonfederal programs), and college service programs, with an Ever emphasis on placements addressing nation priority needs. A limited number of public service entrepr eurs would also be selected for participation. National Service positions may not displace paid workers. Describe Selection of Participants: A diverse group of recent ethin college graduates, as well as college students and non-college bound youth, will be selected for participation by applying to this and being accepted into a program offering approved national service positions. A national system to help match individuals Sr3 with programs will be established. Benefits: All participants will receive a minimum-wage stipend and health and child care benefits (if needed). Individuals serving after college would receive student loan forgiveness worth $10,000 for each of two years of service, or the amount of their outstanding loans, whichever is less. Other participants would receive a post-service benefit of $5,000 which can be used for higher education or employment training. Building an Infrastructure: Funding will be available for three types of grants: single-year venture capital grants may be made to individuals, states, and public or private non-profit organizations (including education institutions) for program start-up; states and public or private non-profit organizations operating programs may receive multi-year grants for program costs; and states and public or private non-profit organizations may receive grants to replicate proven existing programs. Leveraging Nonfederal Funding: All program support and stipends will be made on a challenge basis and must be matched. Federal role: The federal government will establish criteria for approved national service positions, allocate program resources, ensure against fraud and abuse, arrange for a national training program, coordinate service programs within the federal government, and provide training and technical assistance to states and programs. State role: The governor of each state may designate a lead agency and appoint a State National Service Commission responsible for overseeing national service programs in the state. The State Commission should include representatives of local service program directors and other citizens and will develop a plan for service, including proposed national service placements in the state. The plan must ensure equitable treatment of urban and rural areas within the state and be approved by the governor and the national service agency. Phase-in: Participation is expected to reach at least 25,000 by the end of fiscal year 1994, increasing to at least 100,000 in 1997. B. Income Contingent Loan Repayment All borrowers will be able to repay their loans through income contingent repayments. This means that borrowers with higher incomes would repay more quickly, while lower-income borrowers would repay over a longer period of time. Student debt will not prevent borrowers from choosing lower-paying jobs for fear that they will not be able to repay their debt. Clinton National Service Proposal Discussion Outline The President's call to service extends from the youngest elementary students to our oldest citizens, and includes everything from part-time volunteer activities to full-time public service jobs. Toward this end, the President supports funding for service programs involving school-age youth and senior citizens, as well as professional corps programs such as the Police Corps and Teacher Corps designed to attract top candidates to public service jobs. The centerpiece of the President's proposal is a national service program that will make it possible for college graduates and others to perform needed services in their communities by making it easier to pay back their student loans. All students will have the option of repaying their loans with a small percentage of their income over time, removing a significant obstacle to low-paying careers in public service. Some will have the opportunity to serve in national service positions in the areas of education, human services, environment, and public safety. This program is outlined below. A. National Service Positions Types of Placements: States and the federal government may approve placements in youth corps, specialized service corps, individual placements in non-profit organizations (through VISTA or nonfederal programs), and college service programs, with an emphasis on placements addressing national priority needs. A limited number of public service entrepreneurs would also be selected for participation. National Service positions may not displace paid workers. Selection of Participants: A diverse group of recent college graduates, as well as college students and non-college bound youth, will be selected for participation by applying to and being accepted into a program offering approved national service positions. A national system to help match individuals with programs will be established. Benefits: All participants will receive a minimum-wage stipend and health and child care benefits (if needed). Individuals serving after college would receive student loan forgiveness worth $10,000 for each of two years of service, or the amount of their outstanding loans, whichever is less. Other participants would receive a post-service benefit of $5,000 which can be used for higher education or employment training. Building an Infrastructure: Funding will be available for three types of grants: single-year venture capital grants may be made to individuals, states, and public or private non-profit organizations (including education institutions) for program start-up; states and public or private non-profit organizations operating programs may receive multi-year grants for program costs; and states and public or private non-profit organizations may receive grants to replicate proven existing programs. Leveraging Nonfederal Funding: All program support and stipends will be made on a challenge basis and must be matched. Federal role: The federal government will establish criteria for approved national service positions, allocate program resources, ensure against fraud and abuse, arrange for a national training program, coordinate service programs within the federal government, and provide training and technical assistance to states and programs. State role: The governor of each state may designate a lead agency and appoint a State National Service Commission responsible for overseeing national service programs in the state. The State Commission should include representatives of local service program directors and other citizens and will develop a plan for service, including proposed national service placements in the state. The plan must ensure equitable treatment of urban and rural areas within the state and be approved by the governor and the national service agency. Phase-in: Participation is expected to reach at least 25,000 by the end of fiscal year 1994, increasing to at least 100,000 in 1997. B. Income Contingent Loan Repayment All borrowers will be able to repay their loans through income contingent repayments. This means that borrowers with higher incomes would repay more quickly, while lower-income borrowers would repay over a longer period of time. Student debt will not prevent borrowers from choosing lower-paying jobs for fear that they will not be able to repay their debt. Clinton National Service Proposal Discussion Outline The President's call to service extends from the youngest elementary students to our oldest citizens, and includes everything from part-time volunteer activities to full-time public service jobs. Toward this end, the President supports funding for service programs involving school-age youth and senior citizens, as well as professional corps programs such as the Police Corps and Teacher Corps designed to attract top candidates to public service jobs. The centerpiece of the President's proposal is a national service program that will make it possible for college graduates and others to perform needed services in their communities by making it easier to pay back their student loans. All students will have the option of repaying their loans with a small percentage of their income over time, removing a significant obstacle to low-paying careers in public service. Some will have the opportunity to serve in national service positions in the areas of education, human services, environment, and public safety. This program is outlined below. A. National Service Positions Types of Placements: States and the federal government may approve placements in youth corps, specialized service corps, individual placements in non-profit organizations (through VISTA or nonfederal programs), and college service programs, with an emphasis on placements addressing national priority needs. A limited number of public service entrepreneurs would also be selected for participation. National Service positions may not displace paid workers. Selection of Participants: A diverse group of recent college graduates, as well as college students and non-college bound youth, will be selected for participation by applying to and being accepted into a program offering approved national service positions. A national system to help match individuals with programs will be established. Benefits: All participants will receive a minimum-wage stipend and health and child care benefits (if needed). Individuals serving after college would receive student loan forgiveness worth $10,000 for each of two years of service, or the amount of their outstanding loans, whichever is less. Other participants would receive a post-service benefit of $5,000 which can be used for higher education or employment training. Building an Infrastructure: Funding will be available for three types of grants: single-year venture capital grants may be made to individuals, states, and public or private non-profit organizations (including education institutions) for program start-up; states and public or private non-profit organizations operating programs may receive multi-year grants for program costs; and states and public or private non-profit organizations may receive grants to replicate proven existing programs. Leveraging Nonfederal Funding: All program support and stipends will be made on a challenge basis and must be matched. Federal role: The federal government will establish criteria for approved national service positions, allocate program resources, ensure against fraud and abuse, arrange for a national training program, coordinate service programs within the federal government, and provide training and technical assistance to states and programs. State role: The governor of each state may designate a lead agency and appoint a State National Service Commission responsible for overseeing national service programs in the state. The State Commission should include representatives of local service program directors and other citizens and will develop a plan for service, including proposed national service placements in the state. The plan must ensure equitable treatment of urban and rural areas within the state and be approved by the governor and the national service agency. Phase-in: Participation is expected to reach at least 25,000 by the end of fiscal year 1994, increasing to at least 100,000 in 1997. B. Income Contingent Loan Repayment All borrowers will be able to repay their loans through income contingent repayments. This means that borrowers with higher incomes would repay more quickly, while lower-income borrowers would repay over a longer period of time. Student debt will not prevent borrowers from choosing lower-paying jobs for fear that they will not be able to repay their debt. Clinton National Service Proposal Discussion Outline The President's call to service extends from the youngest elementary students to our oldest citizens, and includes everything from part-time volunteer activities to full-time public service jobs. Toward this end, the President supports funding for service programs involving school-age youth and senior citizens, as well as professional corps programs such as the Police Corps and Teacher Corps designed to attract top candidates to public service jobs. 0- The centerpiece of the President's proposal is a national service program that will make it possible for college graduates and others to perform needed services in their communities by making it easier to pay back their student loans. All students will have the option of repaying their loans with a small percentage of their income over time, removing a significant obstacle to low-paying careers in public service. Some will have the opportunity to serve in national service positions in the areas of education, human services, environment, and public safety. This program is outlined below. A. National Service Positions Types of Placements: States and the federal government may approve placements in youth corps, specialized service corps dedicated to priority needs, individual placements in non-profit organizations (through VISTA or nonfederal programs), and college service programs, with an emphasis on placements addressing national priority needs. A limited number of public service entrepreneurs would also be selected for participation. National Service positions may not displace paid workers. Selection of Participants: A diverse group of recent college graduates, as well as college students and out-of-school youth, will be selected for participation by applying to and being accepted into a program offering approved national service positions. A national system to help match individuals with programs will be established. Benefits: All participants will receive a minimum-wage stipend and health and child care benefits (if needed). Individuals serving after college would receive student loan forgiveness worth $10,000 for each of two years of service, or the amount of their outstanding loans. Other participants would receive a post-service benefit of $5,000 which can be used for higher education or employment training. Building an Infrastructure: Funding will be available for three types of grants: single-year venture capital grants may be made to individuals, states, and public or private non-profit organizations (including education institutions) for program start-up; states and public or private non-profit organizations operating programs may receive multi-year grants for program costs; and states and public or private non-profit organizations may receive grants to replicate proven existing programs. Leveraging Nonfederal Funding: All program support and stipends will be made on a challenge basis and must be matched. Federal role: The federal government will establish criteria for approved national service positions, allocate program resources, ensure against fraud and abuse, arrange for a national training program, coordinate service programs within the federal government, and provide training and technical assistance to states and programs. State role: As required under the existing National and Community Service Act, the governor of each state may designate a lead agency and appoint a State National Service Commission responsible for overseeing national service programs in the state. The State Commission should include representatives of local service program directors and other citizens and will develop a plan for service, including proposed national service placements 0- in the state. The plan must ensure equitable treatment of urban and rural areas within the state and be approved by the governor and the national service agency. Phase-in: Participation is expected to be approximately 30,000 in 1994, increasing to at least 100,000 in 1997. B. Income Contingent Loan Repayment All borrowers will be able to repay their loans through income contingent repayments. This means that borrowers with higher incomes would repay more quickly, while lower- income borrowers would repay over a longer period of time. Student debt will not prevent borrowers from choosing lower-paying jobs for fear that they will not be able to repay their debt. In addition, a reformed student aid structure will provide assistance to students in a simpler and less costly way. Eliminating excess bank profits from the student loan programs will reduce costs to taxpayers while improving the delivery of services to students and their families. Jack - IS this chost Current version? Can I have the most carrent? Why aren't these dates?!! dated RA 3-5 Clinton National Service Proposal Discussion Outline The President's call to service extends from the youngest elementary students to our oldest citizens, and includes everything from part-time volunteer activities to full-time public service jobs. Toward this end, the Presidentsupports funding for service programs involving school-age youth and senior citizens, as well as professional corps programs such as the Police Corps and Teacher Corps designed to attract top candidatesto public service jobs. The centerpieceof the President's proposal is a nationalservice program that will make it possible for college graduatesand others to perform neededservices in their communitiesby making it easier to pay back their student loans. All studentswill have the option of repaying their loans with a small percentageof their income over time, removing a significant obstacle to low-paying careers in public service. Some will have the opportunity to serve in national service positions in the areas of education, human services, environment, and public safety. This program is outlinedbelow. A. National Service Positions Types of Placements: States and the federal government may approve placementsin youth corps, specialized service corps dedicated to priority needs, individual placements in non-profit organizations (through VISTA or nonfederal programs), and college service programs, with an emphasis on placements addressing national priority needs. A limited number of public service entrepreneurswould also be selected for participation. National Service positions may not displace paid workers. Selectionof Participants: A diverse group of recent college graduates, as well as college students and out-of-school youth, will be selected for participationby applying to and being acceptedinto a program offering approvednationalservice positions. A nationalsystem to help match individuals with programs will be established. Benefits: All participants will receive a minimum-wage stipend and health and child care benefits (if needed). Individuals serving after college would receive student loan forgiveness worth $10,000 for each of two years of service, or the amountof their outstanding loans, whichever is less. Other participants would receive a post-service benefit of $5,000 which can be used for higher educationor employmenttraining. Building an Infrastructure: Funding will be available for three types of grants: single- year venture capital grants may be made to individuals, states, and public or private non-profit organizations( including educationinstitutions )for program start-up; states and public or private non-profit organizations operating programs may receive multi-year grants for program costs; and states and public or private non-profit organizationsmay receive grants to replicate proven existing programs. Leveraging Nonfederal Funding: All program support and stipends will be made on a challenge basis and must be matched. Federal role: The federal government will establish criteria for approved national service positions, allocate program resources, ensure against fraud and abuse, arrange for a national training program, coordinate service programs within the federal government, and provide training and technical assistance to states and programs. State role: As required under the existing National and Community Service Act, the governor of each state may designate a lead agency and appoint a State National Service Commission responsible for overseeing national service programs in the state. The State Commissionshould include representativesof local service program directors and other citizens and will develop a plan for service, including proposednationalservice placementsin the state. The plan must ensure equitable treatmentof urban and rural areas within the state and be approved by the governor and the national service agency. Phase-in: Participationis expected to be approximately 30,000 in 1994, increasing to at least 100,000 in 1997. B. Income Contingent Loan Repayment All borrowers will be able to repay their loans through income contingent repayments. This means that borrowers with higher incomes would repay more quickly, while lower-income borrowers would repay over a longer period of time. Student debt will not prevent borrowers from choosing lower-paying jobs for fear that they will not be able to repay their debt. In addition, a reformed student aid structure will provide assistance to studentsin a simpler and less costly way. Eliminating excess bank profits from the student loan programs will reduce costs to taxpayers while improving the delivery of services to students and their families. 03/05/93 13:10 COMMITTEE ON EDUCATION & LABOR 002 NEWS RELEASE COMMITTEE ON EDUCATION AND LABOR William D. Ford (Michigan), Chairman U.S. House of Representatives 2181 Rayburn House Office Building Washington. D.C. 20515 (202) 225-4527 FOR IMMEDIATE RELEASE Contact: Mike Russell Monday, March 1, 1993 CONGRESSMAN FORD PRAISES CLINTON'S NATIONAL SERVICE PROGRAM Congressmen William D. Ford of Michigan, chairman of the House Committee on Education and Labor, today applauded President Clinton's national service proposal. Accompanying Clinton to Rutgers University for the amouncement of the program, Fond said, "The proposal has the double value of making a college education affordable and nurturing " more compassionate, public-spirited consciousness among our young people that will sprend throughout the country." Ford, whose committee will have responsibility for approving the national service program when 11 Is sent to Congress, said hc looked forward to working with the Administration to develop the program. The president's proposal initially would Involve 30,000 young people in 1994, increasing to at least 100,000 In 1997. Those who cnter the program upon completion of college would receive a minimum-wage stipend, health and child care benefits where necessary. and student loan forgiveness of up to $10,000 for each of the two years of their service. The federal government would fund state, local and private initiatives and existing programs. All federal funds would be leveraged with public and private matches. Participants - to include a diverse group of recent college graduates, college students und high school graduates would be placed in youth corps, non-profit organizations and college service programs that address pressing national and local problems. The participants will, for example, teach and assist in public schools. stail health clinics, join the police, and work on pollution cleanup and recycling projects. "We have on opportunity to build a now, domestic Peace Corps, based on the successes and failures of the social programs WC enacted in the 1960s," Ford said. "1 am gratified that the president shares my commitment to making a college education available 10 every young person who wants one. Whatever cadcavor our participants may choose in their lives, their perspectives will be broadened. and perhaps their career paths changed. by helping to rebuild our country after the neglect of the past decade." -30- THE WHITE HOUSE WASHINGTON March 2, 1993 MEMORANDUM FOR NATIONAL SERVICE POLICY GROUP FROM: ELI J. SEGAL SUBJECT: RESPONSE TO NATIONAL SERVICE INITIATIVE The enclosed memo from Ed Kilgore represents the first substantive response from our outline. Since Ed is close to Senator Nunn and is very knowledgeable on the subject, we need to take a careful look at his thoughts. Perhaps we should use this memo to schedule a meeting later this week to discuss the outline and figure out next steps including: a) broader distribution; b) drafting legislation; and c) other issues related to the legislative process Unless others have a problem, I suggest 10 a.m. on Thursday, March 4. Please let Karen Ewing know if you have a conflict with this time. Thanks. EJS:ke Distribution: Rick Allen Peter Edelman Bill Galston Jack Lew Shirley Sagawa Melanne Verveer 3/3 ELI HERE'S THE COVER NOTE FROM ED KILGORE re: Sam Nunn + NATIONAL SERVICE. Thanks, Paul Begala you * multh FIG it went top Jack sheet. GOVERNOR'S OFFICE 3 Mar 2,93 15:27 No 012 P.01 X STATE OF GEORGIA OFFICE OF THE GOVERNOR ATL ANTA 30334-0900 Zeil Miller Ed Kligore GOVERNOR DIRECTOR OF INTERGOVERNMENTAL RELATIONS FAX TRANSMITTAL INTERGOVERNMENTAL RELATIONS OFFICE OF THE GOVERNOR 245 STATE CAPITOL ATLANTA, GEORGIA 30334-0900 (404) 651-7768 FAX: (404) 656-5947 TO: PAUL BEGALA WITH: FAX #: FROM: ED KILSORTE DATE: 3/2/93 # OF PAGES (including cover) 3 If problems receiving transmission, call Gayle at (404) 651-7768. COMMENTS: PAUL - THIS ISSUE COULD MAKE GAYS- THE MILITARY Look LIKE A BRIEF DUST-UP, NUNN- WISE. THERE'S AN OBVIOUS COMPROMISE (SEE*) THAT WOULD REASSURE NUNN 8/THE DLC WITHOUT ABANDONING THE PRESIDENT'S COMMITMENTS. 3/2/93 THE WHITE HOUSE WASHINGTON Eu - SOME USEFUL ADVICE FROM A FORMER ADVISOR TO SEN. NUNN (NOW WITH Gov. MIUER). KILGORE'S # IS 404 04/651-7768 651-7768 THANKS, - Paul Begala GOVERNOR OFFICE 3 Mar 2.93 15:28 No 012 P.02 STATE OF GEORGIA OFFICE OF THE GOVERNOR ATLANTA 30334-0900 Zell Miller March 2, 1993 Ed Kligore DIRECTOR OF INTERGOVERNMENTAL RELATIONS GOVERNOR MEMORANDUM TO: Eli segal FROM: Ed Kilgore EK SUBJECT: President's National Service Initiative Congratulations on the initial unveiling of the President's national service proposal. It sounds like the Rutgers event was a great success, and the overall scope of the initiative appears to exceed all expectations. I do have one very obvious concern about the proposal as outlined in the discussion draft your staff sent me last night, and I pass it on because you will immediately encounter it among national service supporters in Congress. If the post-service benefit for post-college volunteers is potentially double that available to pre-college volunteers, then it is hard to imagine why anyone capable of gaining admission to college would serve first. It's like telling children they have a choice of broccoli or dessert as the first course of a meal, but if they start with dessert, they get twice as much. Unless modified, this approach would probably make the ratio of post-college to pre-college volunteers about 90-10, with the pre-college pool being limited to non-college bound kids. Furthermore, it would virtually destroy the concept of educational assistance as an earned benefit. The most obvious remedy would be to make the pre- and post- college benefits the same. Assuming the proposal is too far advanced for that kind of basic modification, the only alternative is to tightly link higher assistance for post-college service to critical service occupations that require post-secondary education --in other words, to stick to the ROTC model and require an explicit commitment to prepare for and then serve in a capacity of unquestioned social value, such as community policing or teaching in an inner-city school. Under this approach, if you wanted unconditional educational aid regardless of your field of study or career path, and also preferred extensive options in service, then you would have to earn the benefits first. GOVERNOR' OFFICE 3 Mar 2,93 15:28 No 012 P.03 ELI SEGAL, page 2 If the President is completely wedded to making post-college service an option for every young American, then at the very least you could lower the maximum loan forgiveness for post-college service to $5,000 a year for unconditional assistance, with the higher benefit limited to those who made a specific service commitment requiring advanced training. I strongly urge you to give an indication that some modification along these lines is at least a possibility. Otherwise, those like Senator Sam Nunn who believe pre-college service is more feasible economically and more significant politically and morally will likely dismiss the President's proposal as just another entitlement program with some offsetting benefits. In addition, an unrestricted post-college program with double the benefits of pre-college service would decimate participation in existing pre-college programs, including those established by the 1989 demonstration bill. On another subject, I am intrigued by the potentially broader role of the state in supervising national service efforts that your discussion outline appears to suggest. I know you have briefed both the Democratic Governors and staff from the National Governors' Association. I would like to repeat the offer I made to Gloria Johnson several weeks ago, to put together a small group of staff representing Governors who are close to the President and very interested in national service, to meet with you and your staff to talk very specifically about the state role.