Mayor's Letter of Support to Senator Grassley_Segal AmeriCorps Education Award Copyrighted
September 4, 2018
City of Dubuque Consent Items # 15.
ITEM TITLE: Mayor's Letter of Support to Senator Grassley Regarding
Segal AmeriCorps Education Award
SUMMARY: Letter of Support to Senator Chuck Grassley
encouraging co-sponsorship of S.1042, legislation
sponsored by Senators Johnny Isakson (R-GA)and
Michael Bennet (D-CO)to provide tax relief for individuals
who have earned a Segal AmeriCorps Education Award
and use it to pay for college tuition, vocational school, or to
pay down qualified student loan debt.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
Mayors Letter of Support to Senator Grassley Supporting Documentation
Regarding Segal AmeriCorps Education Award
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August 23, 2m8
The Honorable Chuck Grassley
U.S. Senate
i35 Hart Senate Office Building
Washington, D.C. 20510
Dear Senator Grassley:
We are writing to encourage you to cosponsor S.1o42, legislation sponsored by Senators Johnny
Isakson(R-GA) and Michael Bennet (D-CO)to provide tax relief for individuals who have
earned a Segal AmeriCorps Education Award and use it to pay for college tuition, vocational
school, or to pay down qualified student loan debt.
This year in Iowa, nearly i,600 citizens will serve in AmeriCorps helping to fulfill unmet needs
in our wmmunities.They will tutor and mentor struggling students,help Americans lead
healthier lives, improve Iowa waterways, reduce our reliance on nonrenewable energy, preserve
Iowa's parks and public lands,build and repair affordable housing, and offer disaster relief and
recovery assistance. Since i994� more than ii,000 Iowa residents have served approximately i5
million hours with AmeriCorps and have qualified for more than$36.9 million in AmeriCorps
Education Awards.The top five Iowa schools that have received these education award
payments are: University of Iowa, Iowa State University,Ashford University, University of
Northern Iowa and Buena Vista University.
Unfortunately, the AmeriCorps Education Awards are not treated the same as similar forms of
scholarships or fellowship benefits by the federal government. Unlike Pell Grants, the G.I.
Education Benefit, or the National Health Service Corps,the AmeriCorps Education Award is
subject to federal taxation after it is used and has the potential to move AmeriCorps alumni into
a higher tax bracket.As a result, alumni are hit with an unanticipated tax obligation that on
average runs in the hundreds of dollars and can exceed $2,000. In addition to causing financial
hardship,this considerable tax burden can delay educational plans or make service a less viable
option for low-income youth.
Iowa legislators saw the unfairness of the tax and unanimously excluded income from the
education award for state taxes in 2009 and again considered and affirmed this wmmitment in
the 2m8 Tax Reform. Since taxes cannot be withheld from the award,we are literally asking
Iowans to write a check to the government for time spent serving. It is time for the federal
government to recognize this issue, as Iowa leaders have, and align with Iowa tax code.
As you know, many young Americans are experiencing difficulties finding career-aligned work.
AmeriCorps is an evidence-based way to tackle these challenges and strengthen our nation's 2ist
century economy. Additionally many young people in our country are facing higher-than-ever
levels of student loan debt. If enacted, S. io42, the Segal AmeriCorps Education Award
Enhancement Act would assist these young people in paying for college tuition, vocational
school or to pay off student debt. This would promote meaningful employment and encourage
self-sufficiency.
The Segal AmeriCorps Education Award should continue to be a valuable and compelling
incentive for young people to serve, and we ask that you cosponsor S. io42 and reaffirm
congressional support for those who voluntarily chose to devote a year of their life to service.
Sincerely,
Roy D. Buol,Mayor, City of Dubuque
Jeff Capps, Executive Director,Cedar Valley Habitat for Humanity
Amy Croll, Executive Director,Community Youth Concepts
Ashley Farmer-Hanson,Interim VP for StudentAffairs and Dean of Students, Burma�sta University
Cyndi Hanson, Commissioner,Iowa Commission on Volunteer Service
Lance Henning, Executive Director&President, Greater Des Moines Habitat for Humanity
Kolton Hewlett, Director of Human Resources,Audubon County Memorial Hospital&Clinics
Lisa Houser, Executive Director,Iowa Habitat for Humanity
Shirley Kessel,Youth Development Specialist, Graceland University
Traci Kirtley, Commissioner, Iowa Commission on Volunteer Service
Cherian Koshy, Commissioner, Iowa Commission on Volunteer Service
Adam Lounsbury, Executive Director,Iowa Commission on Volunteer Service
Jaime Berman Matyas, President and Chief Executive Officer, Student Conservation Association
Amanda McCurley
Henry Ohr, Executive Director, Ethnic Minorities of Burma Advocacy and Resource Center(EMBARC)
Renae Oswald-Anderson,Interim Executive Director, Conservation Corps Minnesota&Iowa
State Senator Amanda Ragan, Iowa Senate District 2'7
Emily Shields, Executive Director, Iowa Campus Compact
Nathan Spalding, Iowa Program Coordinator, FoodCorps
Jordan Vernoy,Immediate Past Chair,Volunteer Iowa
Kerry Walter-Ashby,Commissioner, Iowa Commission on Volunteer Service
Kris Winter, President,M2K Marketing Group and Commissioner,Iowa Commission on Volunteer Service