American Recovery and Reinvestment Act of 2009:. The Largest Investment in Education in Our Nation’s History. American Recovery and Reinvestment Act of 2009. “Historic opportunity to create jobs and advance education reform ”
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American Recovery and Reinvestment Act of 2009: The Largest Investment in Education in Our Nation’s History
American Recovery and Reinvestment Act of 2009 “Historic opportunity to create jobs and advance education reform” • This is a staggering opportunity. If we do the right thing, not just for our economy, but for our children, we have a chance to do something absolutely extraordinary. This an historic opportunity, once in a lifetime. • Must invest these education dollars quickly, thoughtfully and productively in ways that best meet the long and short term needs of children and adults.
Selected Education Funding Figures • State Fiscal Stabilization Funds $53,600,000,000 • State Grants $48,600,000,000 • Incentive and Innovation Grants $5,000,000,000 • Title I Grants to LEAs $10,000,000,000 • Targeted Grants $5,000,000,000 • Incentive Grants $5,000,000,000 • School Improvement Grants $3,000,000,000 • IDEA $12,000,000,000 • Technology State Grants $650,000,000 • Education for Homeless children & youth $70,000,000
Awarding State Fiscal Stabilization Fund Grants The U.S. Department of Education will award the State Fiscal Stabilization Funds (approximately $48.6 billion) to the Governors on a formula basis; upon the approval of the State’s application. • Sixty-one percent (61%) of the States allocation will be based on the relative shares of individuals aged 5 to 24; and • Thirty-nine percent (39%) will be based on relative shares of total population.
Funds to Restore Support for Education • States must use 81.8 percent of funds awarded by formula for the support of public elementary, secondary, and higher education, and, as applicable, early childhood education programs and services. • States must use their allocations to restore support for public elementary, secondary, and postsecondary education to the greater of the FY 2008 or FY 2009 level. (The funds needed to restore support for elementary and secondary education must be run through the State’s primary elementary and secondary education funding formula).
Funds to Support Public Safety and Other Government Services • States must use 18.2 percent of the funds awarded by formula for public safety and other government services, which may include assistance for elementary and secondary education and IHEs. • In addition, States may use these funds for modernization, renovation, or repair of public school and IHE facilities.
State Fiscal Stabilization Fund $53.6 Billion Formula Competitive Governors $48.6 Billion The Secretary $5 Billion Elementary & Secondary Education Institutes of Higher Education Public Safety and Other State Services (1) State Incentive Grants; & (2) Innovation Funds Program 81.8% (39.7 billion) 18.2% ($8.8 billion)
Funding Flow Continued • If the allocation to the State exceeds the combined shortfall of Elementary-Education Secondary and Higher Education, then the remainder is distributed by the Title I formula. • These do NOT become Title I funds but are available for all the allowable uses of funds under the ARRA.
LEA Uses of Funds LEAs may use the funds for: • any activity authorized under the Elementary and Secondary Education Act of 1965, the Individuals with Disabilities Education Act, the Adult and Family Literacy Act, or the Carl D. Perkins Career and Technical Education Act of 2006; or • the modernization, renovation, or repair of public school facilities.
LEA Uses of Funds Continued One question that we have been receiving frequently is whether the portion of the State Fiscal Stabilization Funds distributed to the Governors based on the amount of fundsneeded to restore cuts in the State's primary elementary and secondary funding formulae, for fiscal years 2009, 2010, and 2011, can be used to pay for the salaries of education staff that were losing their jobs as a result of the cuts.We believe that the relevant permitted uses of funds under the various statutes listed in the earlier slide (for example, any activity authorized by the Elementary and Secondary Education Act of 1965 ("ESEA"), and other education statutes listed) would permit the use of these funds to pay the salaries of this group of education staff. We expect to be providing more guidance on this in the future.
IHE Uses of Funds IHEs may use program funds for: (1) education and general expenditures, and in such a way as to mitigate the need to raise tuition and fees for in-State students; or (2) the modernization, renovation, or repair of IHE facilities that are primarily used for instruction, research, or student housing. (IHEs may not use funds to increase their endowments).
Awarding State Fiscal Stabilization Fund Grants - Application State’s are required to submit an application to the U.S. Department of Education containing assurances that the State will: • maintain support for elementary, secondary, and postsecondary education at the FY 2006 level; • take actions to address inequities in the distribution of highly qualified teachers; • improve the collection and use of preschool-through-grade-12 and postsecondary education data; • enhance the quality of the State’s academic standards and assessments; and • take actions to turn around schools identified for improvement, corrective action, and restructuring under the Title I program.
Awarding State Fiscal Stabilization Fund Grants – Application • In its application a State must also provide baseline data that demonstrate its current status in each of the areas described in the assurances referenced above, and • Description of how it intends to use its allocation.
Accountability & Transparency Principles • The President and Secretary are committed to spending ARRA funds with an unprecedented level of transparency and accountability. States and LEAs that receive SFSF funds should expect to report on how those funds were spent and the results of those expenditures. • (Reports on ARRA expenditures on the Recovery.gov website). • To help ensure transparency and accountability, States must maintain records and provide timely reports.
Additional Information • In the near future, the U.S. Department of Education will make available additional information on the State Fiscal Stabilization Fund program. • Additional Information and estimated funding tables are at www.ed.gov Please check for information updates. • If you have any questions or concerns, please email them to: State.Fiscal.Fund@ed.gov