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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 � • � � � • . s � �� . ��� � 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