American Recovery and Reinvestment Act of 2009 (ARRA)

Impact on Districts Receiving Title I, Part A Funds

JoLynn Berge – Cal Brodie – Petrea Stoddard

American Recovery and Reinvestment Act

State Fiscal Stabilization Funds

Increases to Formula Grants

U.S. Dept. of ED Secretary’s

National Amount

Governor’s Portion

$1.0BWA State

•Title I-A Allocation ($135.3 M)•School Improvement Grants (1003 (g) Funds)•Educational Technology Grant•Homeless Grant•IDEA, Part B & 619

•Title I-A Allocation ($135.3 M)•School Improvement Grants (1003 (g) Funds)•Educational Technology Grant•Homeless Grant•IDEA, Part B & 619

•Competitive Grant Applications•Based on how well the state has used the Governor’s Portion of the Stabilization Funds

18.2%•$182.4 M•Used for Public Safety Initiatives – can be used for education

81.8%•$819.9M•Distributed between K-12 and Higher Education to cover budget shortfalls•Based on State Funding Formulas

•Leftover Funds – those funds that were not needed to cover budget shortfalls•Funds will be distributed to LEAs based on their portion for the Title I Allocations•NOT Title I Funds – can be used for activities under ESEA, IDEA, Perkins, or for Building Modernization

2

Innovative Grants•Competitive •$650 M•Direct to school districts from U.S. Dept of ED

Incentive Grants•Competitive•$4.35 B•Awarded to States

Purpose

• Provide additional assistance to high poverty schools to – improve instruction and learning, and – close the achievement gap

[A-1]

Guiding Principles

• Spend funds quickly to save and create jobs• Improve student achievement through school

improvement and reform• Ensure transparency, reporting and

accountability• Invest ARRA one-time funds thoughtfully to

minimize the “funding cliff”[A-1]

Considerations

• Implement evidence-based strategies to help build sustainable capacity for improving teaching and leaning

• Consider early childhood education• Consider programs serving secondary schools

[A-2]

2009 Funds

• Title I, Part A ARRA funds are in addition to regular Title I, Part A allocation

• Separate CFDA Numbers– 84.010A=Regular Title I, Part A allocation– 84.389A=ARRA Title I, Part A funds

• State must inform districts of amount of each• Hold harmless rates based on total of both

[A-2, A-4]

Basis of Allocation/Eligibility• ½ Target Grants [1125(a)(1)]

• ½ Education Finance Incentive Grants (EFIG) [1125A(c)]

• Same criteria—Per 2007 Census data, October 2008 caseload data for N and D students, and October 2007 caseload data for foster and temporary aid to needy families (TANF)– At least 10 formula children– Formula children = at least 5% of 5-17 population

[A-5-9, Section B]

Maintenance of Effort

• Applies—[Sections 1120A and 9521]• With in 90% of preceding fiscal year for

– Combined fiscal effort per student, or– Aggregate expenditures

• May request waiver once every 3 years [1127]

[C-1,Non Regulatory Guidance, Title I Fiscal Issues, ESEA1120A]

Maintenance of Effort• ED Secretary may approve waiver for state and/or

districts to consider State Fiscal Stabilization Funds (SFSF) as state funds

• Expenditures in 2009-10 would first affect MOE in 2011-12

• Even with waiver, remain Federal funds for – Comparability– Supplement Not Supplant– Reporting and Recordkeeping

[C-1-7, ARRA Section 14012(c-e), ESEA 1120A]

Supplement Not Supplant

• Title I, Part A funds subject to SNS requirements– 1120A(b) and (d)– 1114(a)(2)(B)

• Rebuttals and use of exclusion may be applied where appropriate

• Note: Supplement not supplant for Title I, Part A regular and ARRA funds but not for SFSF funds

[C-8-10]

Supplement Not Supplant

• What would the district do if there were no Title I, Part A Federal funds?

• Supplanting if– Activity is required by local, state or other Federal law– District conducted activity in prior year with non-

Federal funds– District uses non-Federal funds to provide same

activity for non-Title I students or in non-Title I schools

[C-8-10, 1120A]

Supplement Not Supplant• Rebuttal possible if

– Can demonstrate source of funds significantly reduced or eliminated

– Can demonstrate educational priorities for use of non-Federal funds has changed

– Activity allowable under Title I, Part A program requirements

– Use of Title I, Part A funds meets general standards of OMB Circular A-87

– Documentation contemporaneous with decision—Not after the fact

[C-8-10, 1120A]

Supplement Not Supplant

• State Fiscal Stabilization Funds are Federal funds and do not need to be taken into consideration when determining SNS

[C-10]

Comparability

• Applies to ARRA Title I, Part A funds• State Fiscal Stabilization Funds are not

included because they are Federal, not state or local funds

[C-11-12, ESEA 1120A]

Period of Availability

• Title I, Part A ARRA funds are FY 2009 funds– Initial period of availability through September 30,

2010 (85% unless waiver)– Remaining (15% or less) by September 30, 2011– See 34 CFR 76.707 for obligation chart

[C-13, NCLB Section 1127, 34 CFR Section 76.707]

Carryover

• Title I, Part A carryover rules apply• At least 85% must be obligated by September 30,

2010• Remainder is consider carryover and must be

obligated by September 30, 2011• Districts may apply for a waiver from this

requirement no more often than once every 3 years

[ESEA Section 1127, 34 CFR Section 76.707, C-13-17 & 19]

Carryover

• Carryover provisions apply ONLY to the Title I, Part A Recovery and Regular funds

• School Improvement funds under Section 1003(a) and (g) are not subject to the carryover provision

[C-18]

Carryover

• OSPI will be requesting a waiver of the ESEA Section 1127 carryover requirement

[C-20]

Cash Management

• Cash management rules apply• Not an issue if districts submit expenditures

on reimbursement basis

[C-21, 31 CFR Section 205, 34 CFR Section 80.21(b) & (i)]

Indirect Costs

• Use the restricted indirect rate for 2009-10• Rates are available on iGrants• Adjustments may be needed during the year

OSPI will monitor this

[C-22]

Requirements

• Title I, Part A Recovery funds are subject to – All applicable ESEA requirements,– Title I, Part A regulations– Other applicable laws and regulations– Applicable OMB Circulars

• A-87—Allowable Costs• A-133—Audit Requirements

[D-1]

Reservations (Set Asides)

• The following Title I, Part A set asides apply– Comparable services to homeless students [1113(c)(3)(A)]

– Comparable services to neglected and delinquent children living in institutions or community day school programs [1113(c)(3)(B)]

– Financial incentives for teachers (optional)• Limited to 5% of allocation [1113(c)(4)]

– Equitable services to eligible private school children, teachers and parents [9401(c)(5) and non-regulatory guidance (requires consultation prior to allocation)

[D-2-7]

Reservations (Set Asides)• At least 10% of school’s allocation for professional

development for schools in Step 1 or above [1116(b)(3)(A)(iii)(I)]

• At least 10% of the district’s allocation for professional development if the district is in Step 1 or above [1116(c)(7)(A)(iii)]

• At least 1% of district allocation for parent involvement activities if allocation is over $500,000 [1118(a)(3)(A)]

• Up to 20% of district allocation for transportation for public school choice (Step 1 and above) and supplemental educational services (Step 2 and above), if sufficient demand, for schools [1116(b)(10)]

[D-9]

Reservations (Set Asides)

• Set asides must take both regular and recovery Title I, Part A funds into consideration when determining if set asides apply– For example, to determine if 1% parent

involvement applies add both Title I, Part A funding sources together, if over $500,000 set aside applies

[D-10]

Waivers

• ED recommends waivers be submitted after the guidance is available to ensure the requests contain all relevant information

• There is no requirement to apply for any waiver• Waivers will be in effect for the two years the

funds are available for obligation

[F-1, F-4, F-5, ESEA Section 9401(c)]

Waivers

• OSPI will request waivers allowable for certain set asides

• Some set asides may NOT be waived– Homeless– Neglected and/or delinquent– Parent involvement– Equitable share to eligible private schools

[D-11]

Not Eligible for Waiver• In addition to the set asides discussed previously,

the following requirements may NOT be waived– Allocation and distribution of funds – Comparability of services– Use of Federal funds to supplement not supplant non-

Federal funds– Civil rights requirements– Prohibitions regarding

• State aid [Section 9522], • Use of funds for religious worship or instruction [9505]• Activities [9526]

Not Eligible for Waiver

• Ranking and allocating of funds to schools [1113(a) and (b)]

• Note: ED may waive maintenance of effort requirements [1125A(e)(3), 9521(c)]

[F-5]

Waivers Requested

• OSPI has or plans to request the following waivers as permitted for the Title I, Part A Recovery funds– At least 10% of district allocation and 10% of school

allocation for professional development for districts and/or schools in improvement

– Up to 20% set aside for transportation for public school choice and SES for schools in improvement

– Inclusion of Title I, Part A ARRA funds in determining per-child amount for SES

– Carryover cap of no more than 15% every three years– Maintenance of effort requirements

[D-11, 13-14]

Funding for Schools

• Ranking and allocation rules under Title I, Part A apply to Title I ARRA funds

• Additional eligible schools may be reached• Regular and ARRA Title I, Part A funds

considered together in determining per pupil allocations

[D-15]

Allocations to Schools in Improvement

• District may not reduce the Title I, Part A allocation to a school identified for corrective action or restructuring by more than 15% when reserving funds for public school choice and SES

[D-12, ESEA 1116(b)(10)(D)]

Ranking and Allocating

• Ranking and allocation rules apply to regular and ARRA Title I, Part A funds

• Both sources must be considered in the per pupil amounts

• Eligible schools not previously served could be reached

[D-15, ESEA Section 1113, 34 CFR Section 200.78]

Civil Rights

• Receipt of federal funds requires compliance with all civil rights laws that prohibit discrimination

[D-16, Notice on Civil Rights Obligations Applicable to the Distribution of Funds under the American Recovery and Reinvestment Act of 2009]

State Reporting Requirements• Detailed information on State and district use of Title I, Part A Recovery

funds will be required in quarterly reports and made public at www.Recovery.gov

• State reporting will include– Total amounts of Title I, Part A ARRA funds received and expended or

obligated– Project/activity name, description and evaluation of completion status

on which Title I, Part A ARRA funds were used– Estimate of number of jobs saved or created with Title I, Part A ARRA

funds• Report due no later than ten days after initial calendar quarter in which

State first receives Title I, Part A ARRA funs or July 10, 2009• ED is developing a common reporting form • Additional guidance is expected—soon

[E-1, Section 1512 of ARRA]

District Reporting Requirements

• Each district which receives Title I, Part A ARRA funds must file a school-by-school listing of its per-pupil education expenditures from State and local sources during the 2008-09 school year– Due to OSPI by December 1, 2009– OSPI must report to ED by March 31, 2010

[E-3]

Accounting for Title I ARRA Funds• Separate reporting requirements for Title I, Part

A ARRA funds and regular Title I, Part A funds, therefore, districts must– Account and report for separately

• Different CFDA Numbers– Title I, Part A regular = 84.010A– Title I, Part A ARRA = 84.389A

– Must maintain accurate, complete and reliable documentation for all ARRA expenditures

– Information on fund uses publicly available on www.Recovery.gov

[E-4-5]

Monitoring of ARRA

• OSPI must monitor grant activities to ensure compliance with all applicable Federal requirements

• ARRA Recovery Act Accountability and Transparency Board will oversee compliance

• Instances of potential fraud, waste and abuse must be reported promptly at 1-800-MIS-USED or oig.hotline@ed.gov

[E-5, Section 1553 of ARRA]