American Recovery and Reinvestment Act of 2009

NCACE InstituteGreensboro, North Carolina

April 20, 2009

March 7, 2009

Secretary Arne Duncan announced that $44 billion in Recovery Act funding will be available to states in the next 30 to 45 days to help avert hundreds of thousands of estimated teacher layoffs while driving crucial education improvements and results for students.

American Recovery and Reinvestment Act

•ARRA•Stimulus•Recovery•SFSF•Stabilization•Targeted

State Stabilization

vs.

Targeted Increases to Formula Grants

•Stimulate the economy in the short term• Invest in education and public services for the long term

ARRA: Overall Goals

ARRA: Targeted

•Title I, Part A amount is $257,456,360•50% by end of March to SEA•Remaining 50% by September/October 2009•Becomes part of total allocation for 2009-2010

ARRA: Targeted

•Additional School Improvement funds by “fall, 2009” (1003g)•$76,000,000•New SEA application submitted to ED

•Will the SEA reserve 4% of the state allocation for school improvement 1003(a)?•Will 95% of 1003(a) be allocated to schools?•Can the SEA utilize 1003(a) funds for LEAs with no schools in improvement?•Can the SEA amend currentallocation procedures

for 1003(g)?

ARRA Title I Funds

•85% expended by end of FY 09-10•All monies expended or encumbered by Sept. 30, 2011

ARRA Title I Overview

•Use funds consistent with the Title I, Part A statutory and regulatory requirements

REMEMBER:

ARRA Title I Overview

•Use funds on short-term investments for long-term economic health• Invest one-time funds thoughtfully to minimize the “funding cliff”

Use of Funds

GUIDANCEFunds under Title I, Part A of the

Elementary and Secondary Education Act of 1965

Made Available Under

The American Recovery and Reinvestment Act of 2009

April, 2009

No waivers

•Comparability•Private school participation •Supplement vs. supplant

Supplement vs. Supplant

“In certain circumstances, including cases of severe budget shortfalls, an LEA may be able to establish compliance with the supplement, not supplant requirement even if it uses Title I, Part A funds to pay for allowable costs that were previously paid for with state or local funds.”

Overcoming the presumption of supplanting

•Activity allowed under Title I•Can demonstrate a reduction in non-Federal funds•Would have eliminated the activity without use of Title I funds•Meets standards of OMB A-87

•How was the position previously funded?•Are those funds no longer available?•Can “like” positions be supported in non-Title I schools?

Invitation for Waivers

•Set-aside requirements•SES student cap•Carryover cap•Maintenance of Effort (consider the extent of the impact of the economic decline)

Set-aside Waivers - YES

•LEA Improvement (10%)•School Improvement (Choice/SES 20%)•School Improvement PD (10% of school allocation)

Set-asides Waivers - NO

•Parent Involvement (1%)•Homeless Education•Private Schools

What about NC’s Ed-Flex authority?

•Not permitted to waive the MOE of any statutory or regulatory requirement related to section 1111(state plans) or section 1116 (School/LEA Improvement)

Request for Waivers

•LEA will indicate in Title I Application for those allowed•Some may be provided as national waivers•Others the SEA may apply to ED on behalf of LEAs•ED will issue more guidance as to process

Ensure transparency, reporting, and accountability

•All ARRA funds must be tracked separately•Quarterly reports on both financial information and how funds are being used•Estimated number of jobs created

Ensure transparency, reporting, and accountability• Subcontracts and sub-grants required to comply with the Federal Funding Accountability and Transparency Act• Reporting template being developed for use by States to capture required information• Transparency allows opportunity to quantify/define goals and mobilize support for improving results for all students

www.recovery.gov.

•Provide spending and performance data that will be posted on the web site to give Americans detailed and timely information on how and where recovery dollars are spent

•Will we have to submit amendments to the current budget or application?•Will we have separate PRCs for the ARRA funds?

Resources at USED

• http://www.ed.gov/policy/gen/leg/recovery/index.html•Fact Sheet (Updated April 1, 2009)•Fiscal guidance (April, 2009)

– Note use of funds•ARRA presentation (April 3rd)

– Note data elements for SFSF– Note information on other funds (e.g.,

McKinney-Vento)

Resources at DPI

• http://www.ncpublicschools.org/fbs/resources/#stimulus•ARRA flow chart•Updated April 6, 2009•Documents provided by the Council of Chief State School Officers – Maintenance of Effort and Supplement

Not Supplant Issues under the American Recovery and Reinvestment Act

Q&R

Title I Directors Frequently Asked Questions about the American Recovery and Reinvestment Act (ARRA) of 2009

Will the 09 ARRA funds be utilized only for currently participating schools?

Local education agencies (LEAs) decide on an annual basis which schools will receive Title I school allotments. The LEA should include input from all stakeholders when deciding which schools to continue serving and/or schools to begin serving for the first time.

Can a school operate as a schoolwide program the first year it is served as a Title I school?

“The comprehensive plan shall be — (i) developed during a one-year period, unless — (I)

the local educational agency, after considering the recommendation of the technical assistance providers under section 1117, determines that less time is needed to develop and implement the schoolwide program [Section 1114(b)(2)(B)(i)(I) of Title I of ESEA].

In NC, the School ImprovementPlanning process may accomplishthis requirement.

Can LEAs request a waiver to serve as a SWP, schools with less than 40% poverty?

Yes. This is an allowable

waiver request for which NC

has Ed-Flex authority.

Are there guidelines regarding minimum school level (per pupil) allocations?

Guidance issued in 2003 statesthat for schools the, “allocationamount must be large enough toprovide a reasonable assurance thata school can operate a Title Iprogram of sufficient quality toachieve that purpose.”

If the LEA chooses to serve additional schools, will the paraprofessionals in those schools be required to meet the definition of being highly-qualified?

Yes. Title I funds under

ARRA must follow all statutory

requirements under ESEA.

Can stimulus monies be used to expand preschool programs?

Yes. ARRA funds provided under Title I, Part A may be used for any activities allowable with regular Title I, Part A funds.

Can instructional facilitators be a district-wide initiative for Title I Schools?

Yes. ARRA funds provided under Title I, Part A may be used for any activities allowable with regular Title I, Part A funds.

With state budget cuts affecting teachers, will there be any waivers regarding supplement vs. supplant?

No waivers will be allowed forthe supplement vs. supplantprovision of Title I funds. However, cases of extremebudget shortfall often provide arebuttal for the presumption ofsupplanting.

Will the state be able to hold the ARRA funds until July 1 to avoid exceeding the 15% carryover?

Although 50% of ARRA fundsthat will be made available in April,ARRA funds for Title I, A areconsidered part of the 2009-2010total Title I allocation. Carryoverprovisions do not apply until September 30, 2010.

Should regular Title I funds and ARRA funds be used simultaneously (at the school level), or should PRC 050 be used first to avoid carry-over issues?

The ARRA funds are consideredpart of the total 2009-2010 TitleI allocation. The carryover capwill be considered on the total ofthe two fund streams.

Will LEAs be able to request a waiver to exceed 15% carry-over limit for SY 2008-09? 09-10?

NC has Ed-Flex authority and may grant carryover waivers to LEAs more than once in three years (as outlined in the regulations) if sufficient justification is provided.

Can positions supported by ARRA funds (other than LEA Improvement) serve the district at large, or would services be limited to Title I schools?

Again, ARRA funds are part ofthe total Title I allocation and theuse of funds must adhere to allapplicable statutoryRequirements under Title I, A.

With the reductions in state and local funding, can all qualifying students in the district attend summer programs funded by stimulus money?

Again, ARRA funds are part of the totalTitle I allocation and the use of fundsmust adhere to all applicable statutoryrequirements under Title I, Part A. Qualifying students are consideredthose students attending Title I schools.

Will the homeless set-aside increase regardless of whether the present set-aside is used?

Title I staff should collaborate with Homeless Education staff on an annual basis to determine the reservation amount from Title I, Part A funds.