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How AmeriCorps Led to Obama's First Scandal

How a cash voucher for city teaching students hurt the President

When President Obama's abrupt dismissal of AmeriCorps Inspector General Gerald Walpin briefly made headlines last month, most of the resulting firestorm focused on the political side of the scandal. With no notice and a flimsy excuse, Obama had tossed out an independent government watchdog, irking senators on both sides of the aisle. But the findings uncovered by Walpin before his firing raise a larger question: Is AmeriCorps, set up by President Clinton to boost volunteerism, improperly shoveling millions of dollars to rookie New York City teachers?

One week before he was fired, Walpin's office issued a damning audit of one of AmeriCorps' largest initiatives, the New York City Teaching Fellows program. Until the Walpin scandal broke out, few people even realized NYCTF was an AmeriCorps project. Launched in 2000, when the city faced a dire teachers shortage in its neediest classrooms, Teaching Fellows recruited those looking for a career change to undergo two months of crash training and then step into an entry-level teaching job. From an initial pilot class of 300, NYCTF has now expanded to become the largest alternative-certification program in the country. More than 10 percent of New York City's current public school teachers come from its ranks.

The Teaching Fellows program lures candidates through inspirational subway ads that appeal to a sense of civic duty. But it's not community service in the traditional sense—participants draw the same salary as other rookie NYC teachers, currently $45,530, and receive a heavy subsidy from the city toward the master's degree in education that they're required to complete. For the past eight years, they've also received another incentive: membership in AmeriCorps, which makes them eligible for nearly $10,000 in federal funding for educational assistance.

In the audit that, he says, helped torpedo his job, Walpin took aim at that funding, saying the government should demand all $45 million of it to be paid back.

Walpin's argument hinges on a small technicality with giant ramifications. By law, AmeriCorps' grants are intended to support programs that fulfill "unmet needs." When the program subsidizes professionals like doctors, police officers, or teachers, it can only do so "in communities with an inadequate number of such professionals."

Back in 2001, when the fledgling NYCTF program landed its first AmeriCorps grant, it met that definition—it recruited non-traditional candidates for teaching jobs because the Department of Education (DOE) couldn't fill Bronx special education classrooms any other way. But the program quickly became a success: By 2004—the first program year covered in Walpin's audit—it had more than 17,000 applicants for around 2,000 spots. This year, supply so vastly exceed demand that NYCTF ran out of classroom positions for even those candidates it had already accepted. The DOE cancelled its mid-year program, and the 775 fellows who began training in June have no guarantee that they will land teaching jobs this fall. The statistics say that New York City no longer has a teacher shortage.

More problematically, the fellows told Walpin's auditors that the AmeriCorps grants played no role in getting them into the city's classrooms. "That raised a giant red flag," Walpin tells the Voice. "It was a touchy thing we hit, because this is the largest AmeriCorps program. The amount of money that goes to it and the number of members involved really add to the ability of the Corporation to look like it's growing and successful."

The Teaching Fellows initiative has never looked like a classic AmeriCorps program. Created in 1993 to bring together a hodgepodge of national service programs, AmeriCorps was intended as a domestic Peace Corps, sending minimally compensated volunteers off to work in underserved areas. "You will work on boats to reclaim the Chesapeake Bay and work on new housing to rebuild parts of Roxbury," President Clinton told AmeriCorps' first wave of recruits at the program's inaugural swearing-in ceremony. "For our nation, the moments of service that will follow will change our lives for many seasons to come."

Full-time AmeriCorps members spend 1,700 hours working on community projects, and, in return, receive a subsistence-level salary and basic benefits. The main financial lure comes at the end: After a year of service, graduates qualify for an education award of $4,725 (twice that for those serving two years) that they can use to pay off a student loan or put toward future educational expenses.

When it created AmeriCorps, Congress authorized the inclusion of "professional corps" programs like the Teaching Fellows. Professional members don't get a federal salary, but they're still eligible for education awards. For NYCTF, those awards have cost the federal government more than $40 million so far. Awards for the June 2009 fellows cohort would put AmeriCorps on the hook for another $7.3 million.

That would be fine if the program was doing what Congress intended: luring candidates to fill pressing community needs that would otherwise go unmet. For most AmeriCorps programs, that's what the educational subsidy does. In a 2007 survey, AmeriCorps' parent organization, the Corporation for National and Community Service, found that 71 percent of the Corps' recruits called the education money a "moderate" or "large" factor in their decision to join up.

But in Walpin's audit of active fellows, none of those polled said AmeriCorps and the education award it offers were incentives to join the program. Most said they were unaware of AmeriCorps' involvement when they enrolled—and every single one said they would have applied to be a teaching fellow even if the program didn't offer AmeriCorps education grants.

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  • teachinnyc 03/27/2010 8:25:00 PM

    I know of 8 teachers with absolutely no special credentials who have gotten the loans for their masters degrees fully paid/ forgiven through AmericCorps placements. They spent at most a year doing something else before teaching. Their job interests before teaching made it difficult to find work so they figured they'd teach. These are not highly qualified people. The teachers I've spoken with receive $4000 a year and have done so for the last three years. Three left the city after the two year commitment was over to teach on Long Island. Another stopped teaching because he "Didn't want to teach anyway," and two others send resumes out every year looking to move out of the city. I speak from my experiences at only two schools. Multiply that by all the districts in NYC and you've got a huge money pit. If you're getting a free ride then you should have to stay and teach in the city for a minimum of five years. This is a total waste of money. To all the teachers who actually stay in NYC and try to make a difference, thank you.

  • tracy pierce 02/27/2010 8:09:00 AM

    I am a fellow member of amer.corps in fresno ca. I received the 2008 spirit of service award.I was hurt when an opening came up for program manager, and was told bthat E.O.C. wanted to hire outside. I felt let down, by the very program that I helped to get reconized, I was told that there would be an article about me on our website,and that never happened,Then I was told that we did not have the money and it has been one story after another, I am a supervisor for the recycling program, and my boss at the time was promoted to the l.C.C. director, I asked for his old position and he stated to me that he was not going to hire anyone for this position because we were operating at a low budget, even though it was low we he held the position. Then I was told to turn in a resume, which I did and another supervisor was taken out of the field to work on a special project, so now there are 3 field superviors in the field. Then I was told that if no-one likes you in the office you will never come inside. At this time i cannot find another job, I lost my mother a few years ago and it has been really hard trying to pay motrgage without a better paying position. I hope that other americorps members who have won the spirit of service awards do not go through this type of treatment, and that someone, some where takes a stand for us. Does it mean anything to win this or are we asking for to much,to be put into better positions with the local conservation corps. I hope that this message goes out to a person who will take intrest in what I had to say. I have been with the L.C.C for over 2yrs, now, and I know that I did make a difference in my community. Thank-You

  • Cohort 14 08/18/2009 5:08:00 AM

    In your article you state that the grant is a "bonus paycheck." You also remark that we fellows pay $6,600 out of our paycheck. Additionally, you say that most fellows don't find out about the AmeriCorp program until they are a fellow. I believe the grant replaces my deductions and therefore IS used for education. When I applied to NYCTF, I was told that my degree would be subsidized. After I started training I found out about the monthly deductions. During training I was told about the AmeriCorp grant that would make up for the deductions. So, the grant was not a bonus paycheck, it replaced the deductions that were taken out of my paycheck. There is a NY Times article I read from 2001 stating that the city had to stop fully funding the degree because of budget issues and the AmeriCorp Grant picked up the slack. 2 x $4700 - taxes is pretty close to $6600. At least, it made up the difference for me.

  • ATL Guy 08/04/2009 10:00:00 AM

    I fail to see how this is Obama's scandal as you say. This program started in 2000 and ended last year and yet this is his problem? Seems like your arrow is pointing the wrong way. Whatever happened to "serving at the pleasure of the President"? As a new President, Obama wanted a change in ship. If this guy has been around for all of these years since 2000, then this is pure incompetence on his part to find problems 8 years later. I can clearly see why the newspaper business is in the pits these days because writers like you are journalistically lazy and incompetent. Good luck with your future reporting cause if this piece is any evidence of your work, then you're going to be unemployed soon.

  • pork 07/30/2009 8:06:00 AM

    this makes no sense. what does obama have to gain? i may not always agree with him but he's not stupid. there's gotta be more to the story.

 

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