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June 1 Letter to CEO’s
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June 1 Letter to CEO’s
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Jim Kreidler's Files
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FOIA Number: 2013-0661-F (2)
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:
National Service
Series/Staff Member:
Jim Kreidler
Subseries:
OA/ID Number:
1285
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Folder Title:
June 1 Letter to CEO's
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66
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5
2
INDEX OF FILES
June 1 LETTER TO CEO's
INVITATION TO NAT. SERVICE BILL SIGNING
SPONSER REQUEST
POSSIBLE VOLUNTEERS
NEW LETTERS OF SUPPORT OR ENDORSEMENTS
LENERS FROM PRESIDENT To CONG FOR HOUSE VOTE ON BILL
POINTS OF LIGHT/ONS MAILING
CORPRATE ENDORSE MENTS
SUMMER of SERVICE SITES +LETTERS
LETTERS to CEO'S w/ FALT SHEETS
INFO PACKETS To congress + Public
GRAPHICS FOR LEGISLATION DEMONSTRATION / HOUSE
RANDOM RESOMES SENT
LETTERS SENT w/ PERSONAL LINE OF THANKS
CONGRESSIONAL MAILING
PRAFTED LETTERS FROM The President
SUMMER OF SERVICE CHALLENGE
INFORMATION PACKETS
THE WHITE HOUSE
WASHINGTON
June 1, 1993
Mr. Alan Seelenfreund
Chairman & CFO
McKesson Corporation
One Post Street
San Francisco, CA 94104-5292
Dear Mr. Seelenfreund:
As we work toward passage of national service legislation, the White House
Office of National Service wants to share with you the enclosed information about
the initiative. In the weeks ahead, the President will be working aggressively to
make this vision a reality - to expand educational opportunity, reward individual
responsibility, and build the American community by bringing citizens together to
tackle common problems.
This week hearings continue before the House Committee on Education and
Labor. Hearings before the Senate Committee on Labor and Human Services will
be completed on June 8. Mark-ups in both the House and Senate committees are
scheduled for June 9.
In his message to Congress transmitting the proposed national service
legislation, the President emphasized the singular importance of partnerships in
rebuilding our communities. In the 1990's, more and more businesses are
recognizing that long term profitability is linked to a commitment to the
community. Research shows that businesses which promote service have higher
productivity, a more satisfied work force, and better community relations.
Businesses shape the direction and values of their environment with innovative
and responsible policies which unite their own success to that of their
communities. President Clinton's national service proposal encourages further
growth of this alliance.
Your support will help ensure the success of national service. Letters to
the President can be faxed to (202) 456-6420. This is an ongoing process; please
let us know of your willingness to help.
Nancy Rubin, Director of Private Sector Liaison, would like to know of
your company's interest in national service as soon as possible. She can be
reached at (202) 456-6444.
With your participation, we will continue to renew our communities and
rebuild our country.
Sincerely,
Eef.Syl
Eli J. Segal
Assistant to the President
Director of National Service
FACT SHEET
NATIONAL SERVICE TRUST ACT OF 1993
The "National Service Trust Act of 1993" is innovative public policy founded on
traditional American values: offering educational opportunity, demanding personal
responsibility, and building the American community. In affirming these values, the initiative
also rejects big bureaucracy -- reinventing government to unleash the initiative of the
American people.
The President's support for service extends from the youngest elementary school
students to our oldest citizens, and includes everything from part-time volunteer activities to
full-time public service jobs.
The President's initiative will:
Build the American community through a new domestic Peace Corps that brings
Americans together to tackle pressing national problems.
Offer educational opportunity and reward individual responsibility by providing
educational awards to hundreds of thousands of Americans who serve our country.
Reinvent government by streamlining Federal bureaucracies, relying on locally driven
initiatives, and creating flexibility for students and competition among programs.
The Act will establish a Corporation for National Service that will offer Americans
who do vital work in the national service initiative an educational award.
The Corporation will establish quality criteria and require measurable impacts, but
within these bounds, communities will be able to design programs that meet their own
pressing needs. Programs will be expected to educate their participants both in the particular
skills their service demands and in the civic responsibility that our democracy requires. In all
respects, the Act is designed to build partnerships - among Federal Government, State
governments, and the private sector; and within communities, among the schools, businesses,
and civic organizations that seek to fight common problems. Assistance will be distributed on
a competitive basis and no program will have a right to funding, but a wide variety of
organizations will have a chance to establish programs that serve our country.
1
Definition of National Service
Meets unmet educational, environmental, human, or public safety needs.
Improves the life of the participant, through citizenship education and training.
Does not displace or duplicate the functions of existing workers.
Organization
To reduce waste and promote an entrepreneurial government culture, a new
government Corporation for National Service will be established, combining the
Commission on National and Community Service and ACTION.
While maintaining existing programs such as VISTA, the new program makes
investments in new initiatives; neither the Corporation nor the State commissions will
operate them.
A small bipartisan Board will share power with a Chairperson.
Flexible and quality-driven personnel policies will include pay-for-performance and a
7-year limit on most tenures.
The Corporation may solicit and accept private contributions.
At the state level, commissions on national service will be established to mirror and
cooperate with the Federal Corporation.
Like the Corporation Board, commissions will be composed of bipartisan members
from a variety of fields. To ensure a genuine Federal/State partnership, a representative
of the Corporation will sit on the State commissions, and a State representative will sit
on the Corporation Board.
All programs will have to compete for support; none will be guaranteed funding.
One-third of funds will be allocated by population-based formula to State commissions
with approved plans for competitive distribution of funds; at least one-third to State
commissions on a competitive basis for competitive distribution; and up to one-third
will be reserved to the Corporation for allocation on a competitive basis.
Programs
National quality criteria for programming will be developed for every type of program
in conjunction with experts in the field.
Performance goals and independent evaluations will be required in every program.
2
An Inspector General will police fraud and abuse and perform oversight of funded
programs.
To encourage public/private partnership, programs must provide a 15 percent cash
match on stipends and health care and a 25 percent match for other program support.
Entities ranging from small community organizations to Federal agencies will be
eligible to operate service programs.
A broad array of possible programs will be eligible for funding: from youth corps for
at-risk youth, to specialized service programs for college graduates, to diverse
community corps for Americans of all backgrounds. Many other models are possible,
and venture capital will be available for new efforts.
Participants
To encourage wide and diverse participation, individuals aged 17 and over may serve
before, during, or after post-secondary education.
To target program participation to participant interests and community needs,
participants will be recruited and selected by approved local programs. A national or
State recruitment system will also be established to disseminate information and help
interested individuals locate placements in local programs. Information about
available positions will be widely disseminated through high schools, colleges, and
other placement offices.
To earn an educational award, a participant must complete at least 1 year of full-time
or 2 years of part-time service in an approved program. An individual may serve up to
two terms and earn up to two educational awards.
Educational awards of $5,000 will be provided for each term of service. Awards may
be used for past, present or future expenses, including 2- and 4-year colleges, training
programs, and graduate or professional programs.
Programs will set stipends within a limited range based at minimum wage. Health and
child care will be provided to those who need them.
Encouraging Service by All
The Act enhances the Serve-America program for school-age youth.
The Act extends and improves the VISTA and Older Americans Volunteer Programs.
The Act reauthorizes support for the Civilian Community Corps.
The Act reauthorizes support for the Points of Light Foundation.
3
BACKGROUND ON
SUMMER OF SERVICE
On March 1, 1993, in a speech at Rutgers University, the President outlined his vision for
national service. On April 30 in New Orleans, he unveiled the first part of that vision -- a
legislative initiative creating a national service program. By offering increased
educational opportunity, the program will make it easier for Americans to afford college.
In return, national service will demand responsibility from Americans for rebuilding our
country and our communities -- city by city, neighborhood by neighborhood, block by
block.
A second aspect of the President's vision of national service is the "Summer of Service" --
an immediate initiative designed to meet critical needs of at-risk children this summer,
while at the same time building future national service leaders.
This effort will involve approximately 1,500 young people (ages 17-25) across the country
in serving the educational, health, public safety and environmental needs of children at-
risk.
The Commission on National and Community Service, which is responsible for
implementing the Summer of Service, received more than 430 grant applications from
community service organizations in all 50 states and three territories. The White Office
of National Service received more than 6,000 letters expressing interest in the program.
The Office of National Service and the Commission announced on May 6, 1993, sixteen
Summer of Service grant recipients from across the country. The programs range from a
primary healthcare project for children at-risk, to a low-income housing safety inspection
and smoke detector installation project, to a middle school tutoring and mentoring
program. Groups that received grants are now in the process of recruiting and selecting
the young people to serve in the programs. All of the initiatives will demonstrate the
tangible and measurable community benefits that can result from national service.
Summer of Service will kick off with a national leadership training week June 20-25. All
of these young national service pioneers will gather in the San Francisco Bay Area for an
intensive "boot-camp" style training to prepare them for the summer and to build a core of
young leaders for national service. They will be trained by leaders from such programs
as the Peace Corps, Outward Bound, Youth Build and Boston's City Year and learn how
to bring their national training experience home to the communities in which they live. In
addition to going out into the Bay Area and performing a wide range of service projects,
the participants will be immersed in an interactive leadership development curriculum
including classroom work, community case studies and group leadership exercises of the
type favored by many Fortune 500 companies.
The summer will end with a Summit on Service hosted by the President where he and the
service pioneers will meet to discuss the challenges of the summer and lay future plans for
national service.
This material may be protected by copyright law. (litie 11, U.S. Code)
N.Y.TIMES:05/01/93
CLINTON PROPOSES
SERVICE PROGRAM
TO AID STUDENTS
National Service Plan
$10,000 per student in school
ALSO URGES LENDING
grants would be available in
return for community work
($5,000 per year of service).
Students would also be paid at
$10,000 Grants Planned
least the minimum wage, and
receive health care and child
in Return for 2 Years
care assistance if needed.
25,000 students would take
in Community Jobs
part in 1994, working in
human services, education,
By THOMAS L. FRIEDMAN
the environment and safety.
Special to The New York Times
NEW ORLEANS, April 30 - Presi-
dent Clinton outlined a plan today to
Student Loan Overhaul
overhaul the way Americans pay for
MONEY would be lent to
college, offering students up to $10,000
students directly by the
for college or vocational training in
Government.
return for two years of community
service. In addition, he would change
REPAYMENT would be based
the student loan program to allow stu-
dents to borrow money directly from
Bypassing Banks
on a percentage of a worker's
the Government.
The other major component of the
income. Those with lower-
Mr. Clinton unveiled the aid program
aid program, to be introduced as a
income jobs would have
- a central promise of his campaign,
separate bill, is direct student loans
longer to pay.
with great appeal to middle-class vot-
from the Federal Government. Such
ers to a cheering audience of stu-
loans are now guaranteed by the Gov-
WAGE WITHHOLDING might be
dents at the University of New Orleans,
ernment but made by banks, which
used by the Internal Revenue
saying that if adopted by Congress, it
earn a profit on the interest. The Presi-
Service to enforce loan
would "revive America's commitment
dent said direct aid would eliminate
collection.
to community and make affordable the
bank profits, making loans available at
cost of a college education for every
lower rates.
American."
In 1992, banks made $13.6 billion in
G.I. Bill of the 90's?
federally insured student loans. Ad-
ministration officials estimate that de-
He said his National Service Trust
mand for such loans could rise to $20
Act would be to the 1990's what the G.I.
billion to $25 billion a year after five
Bill was for the 1950's and the Peace
years. The Government would raise
Corps was for the 1960's the place
the money it lends in the bond market,
"where higher learning goes hand in
not from taxes.
nand with the higher purpose of ad-
The legislation will include a pro-
dressing our unmet needs."
posal to allow graduates to repay tu-
If Congress passes the national serv-
ition loans at a monthly rate linked to
ice bill this year, Mr. Clinton said, the
their income, thereby reducing de-
program can start in 1994. The Nation-
faults and encouraging graduates to
al Service budget calls for $400 million
in 1994, which would cover about 25,000
Continued on Page 10, Column 1
community service jobs, rising to $3.4
billion a year for 150,000 participants in
1997.
They would do minimum-wage jobs
in education. the environment, public
safety and human services. On top of
their wages, about $8,500 a year, they
would get $5,000 a year to repay college
loans or otherwise pay for education
and training.
THE NEW YORK TIMES NATIONAL SATURDAY, MAY 1, 199:
Clinton Offers New Plan
The National Service Plan
To Aid College Students
Who is eligible?
High school graduates and those with a
General Equivalency Diploma, 17 or older, can
qualify for school grants in return for community service.
Continued From Page 1
tion by giving states the opportunity to
to get more if they come up with cre-
How long ticipants serve?
ative ideas. The states would decide
take low-paying community service
At least one year of full-time service.
which groups would get slots and the
jobs. The payments would be collected
National Service Corporation in Wash-
How much are the awards worth?
through the Internal Revenue Service,
ington will simply ratify the choices.
Awards of $5,000 will be paid for each year of service; students can
Mr. Clinton said, most likely through
A community service program au-
payroll deductions or as part of income
thorized for three slots, for instance,
choose one or two years. The money could be used to repay
tax filings.
can make this offer to three people
college. cans or to pay for other education or training, Students
Contrary Opinions
ages 17 years or older: If they will
would also-receive at least minimum-wage stipends, along with
work for the minimum wage of $4.25 an
health care and child care assistance if needed.
Administration officials said they
hour for one year, the national service
were cautiously optimistic that the
trust fund will provide up to $5,000
What kinds of Jobs will be available?
plan would have bipartisan support in
toward their tuition, room and board.
Congress, but early reaction was
Service will be in four broad areas. Here are examples:
That money, if used for tuition pay-
mixed.
ments. would be paid by the Govern-
Education: Assisting teachers In Head Start or in classrooms.
"The President's plan gets two A's
ment directly to the college of the stu-
from me because it makes a college
The Environment: Working on recycling or conservation projects.
dent's choice; money for loan repay-
education or better job training more
ment for former students would be
Human services: Providing care to homebound elderly. Helping to
affordable and accessible to our young
made directly to the bank.
build housing for the homeless
people and our workers," said Repre-
Anyone could volunteer for national
sentative William D. Ford, of Michigan.
Public safety: Teaching drug education seminars. Serving as a
service and receive the grants regard-
chairman of the House Education and
less of family income. If a volunteer
community service officer with a police department.
Labor Committee.
works for two years, the government
But Representative Marge Roukema
would pay $10,000 toward his educa-
of New Jersey, the senior Republican
tion, the maximum available under the
'on Mr. Ford's committee, said the
program. The money must be used for
ernment will no longer have to extend a
which the Government would provide
President "should be concentrating on
education within five years of the serv-
subsidy to commercial banks to keep
all students with the opportunity to pay
reducing the deficit, instead of propos-
ice work. The Federal government
the loans below market rate, because
back their student loans as a percent-
ing new multibillion-dollar entitlement
would also pay 85 percent of the $4.25
bank profits will be taken out of the
age of their income over time; the less
programs."
minimum wage - roughly $6,000 a
equation and because the Government
the graduate makes, the more time he
The night before his announcement,
year per person with state and local
can borrow money for student loans
has to pay off the loan. The value of this
Mr. Clinton decided to slash the com-
authorities expected to pick up the rest.
more cheaply than banks can. The loan
program, he said, is that graduates,
pensation for community service from
The states would be responsible for
program is intended to pay for itself.
freed from the pressure of large loan
a maximum of $13,000 for two years'
monitoring the local service organiza-
In the 1991-92 school year, annual
payments, would be encouraged to take
tions to prevent fraud, and the National
costs tuition, room, board, books and
low-paying public service jobs.
Service Corporation would also have
expenses - at four-year public institu-
Mr. Clinton directed the Secretaries
its own inspector general to monitor
tions averaged $7,584, according to the
of the Treasury and Education to come
Assistance that
the programs. Any program caught in
College Board, while the costs of four-
up with a plan for I.R.S. collection of
fraud would be removed.
year private institutions averaged
student loans, through wage withhold-
appeals to the
As for the student loan programs,
$16,292.
ings or some other means, to reduce
Mr. Clinton proposed two fundamental
The last program Mr. Clinton un-
defaults and simplify the system for
middle-class.
changes. The first is the establishment
veiled is called Excel Accounts, under
borrowers.
of what is being called one-stop direct
student loans. Student loans are now
work to $10,000. in hopes of pre-empting
provided by commercial banks at be-
complaints from Republicans about
low-market interest rates and guaran-
costs, and to deal with Pentagon con-
teed by the Government. When stu-
cerns that too much cash would lure
dents default, the Government pays the
young people away from the military
banks; defaults cost the Government
which has its own scholarship program
about $3 billion a year.
in return for service.
Under the new program detailed by
Mr. Clinton said his proposal, which
Mr. Clinton today, the Federal Govern-
is the work of Eli Segal, the director of
ment would provide a pool of public
the White House national service bu-
money for student loans, replacing the
reau, had been designed to put as much
private capital being provided by com-
of the bureaucratic burden as possible
mercial banks. The government would
on state and local institutions.
grant student loans, with colleges and
vocational schools working as the mid-
Bones of the Program
dlemen. Mr. Clinton said he would like
It would work as follows: A National
to phase in this program, beginning
Service Corporation would be set up by
with roughly $500 million in loan capi-
the Government to allocate National
tal for fiscal 1994 and eventually grow-
Service slots to states, which would
ing to cover all loans by 1997.
allot them to community service
The commercial banking industry is
groups and municipalities.
expected to fight this proposal.
The number of a state's slots would
Mr. Clinton argued that in the long
be based on population, but the Admin-
run this program would save taxpay-
istration hopes to encourage competi-
ers money, primarily because the gov-
198
Response to the President's National Service Initiative
Corporation:
Address:
Phone #:
Name of Contact:
The Office of National Service is putting together a list of endorsements for the
President's Initiative on National Service.
Yes, my organization would like to be added to the list of
endorsements.
No, my organization is unable to add its name to the list of
endorsements at this time.
Please keep us informed of how we can support National Service.
Please fax responses to Nancy Rubin, (202) 456-6420, by June 18, 1993.