American Recoveryand Reinvestment Act

American Recoveryand Reinvestment Act

The Federal Stimulus Package forEducation – Overview

The Federal Stimulus Package forEducation – Overview

The American Recovery and Reinvestment Act provides approximately $100 billion to save and create jobs and to reform education

It is a great deal of money – approximately $7 billion for K-12 education

The biggest programs get the biggest dollars – Title I and IDEA

In addition, the biggest single program is the SFSF – provides a total of $4.9 billion for K-16 education

And the federal government has great expectations for these funds

Save jobs

Stimulate the economy

Improve academic outcomes and support school reform

General Guidance – Using the Funds

General Guidance – Using the Funds

ARRA’s Four Reform Goals:

Increasing teacher effectiveness and equitable distribution of effective teachers

Adopting rigorous college and career-ready standards and high-quality assessments

Establishing data systems and using data for improvement

Turning around the lowest performing schools

General Guidance – Using the Funds

General Guidance – Using the Funds

Will the proposed use of ARRA funds:

Drive results for students?

Increase capacity?

Accelerate reform?

Avoid the “cliff” and improve productivity?

Track results?

Following are anticipated timelines for issuing funds based on guidelines known to date:

Program Timeline (percentages that are listed are relative to total expected funding)

State Fiscal Stabilization FundApproximately 65% issued as of mid-June; 2009 remaining portion

Title I, Part A Approximately 40% issued as of June 2009*

IDEA Part B Approximately 20% issued as of May 2009*

McKinney-Vento/Homeless 100% issued in March/April 2009

Title I School Improvement Grants 100% Fall 2009

Title II, Part D (Enhancing Education Through Technology)

100% Fall 2009 (50% competitive and 50% formula)

* Balance anticipated between July to October 2009

The Federal Stimulus Package forEducation – Timing

The Federal Stimulus Package forEducation – Timing

General Guidance – Management of the Funds

General Guidance – Management of the Funds

All funds must be legally obligated by September 30, 2011

Existing program and accounting rules apply Office of Management and Budget (OMB) A-87 and A-133

Supplement, Not Supplant Title I set asides, allocation plans, carryover limits, site council

involvement Special education program compliance and maintenance-of-effort rules

Example of Effective Funding Use –State Cuts and State Fiscal Stabilization

Example of Effective Funding Use –State Cuts and State Fiscal Stabilization

Ultimately, the best use is a one-time or limited-term use, but it may not be possible, given the cuts, to realistically or politically use 100% of the funds this way

If the funding must be used for personnel:

Set the right expectation – a job saved with these funds is a temporary reprieve, not a long-term fix

Code and track the use of funds because this must be reported

State Fiscal Stabilization Funding – Allowed Uses

State Fiscal Stabilization Funding – Allowed Uses

This funding is the most flexible of all ARRA programs A broad range of activities are permitted, but, like all ARRA funding, it is

short lived If funding is used to pay for general education program teacher(s), at

most it can stretch two years, assuming enough funding is available However, there are several prohibitions:

Payment of maintenance costs Stadiums or athletic facilities Purchase or upgrading of vehicles Facility projects that are not for buildings used for the direct education

of students (e.g., district/central office) Financial assistance for students to attend private schools School modernization, renovation, or repair that is inconsistent with

state law Restoring or supplementing a “rainy day” fund

Title I – OverviewTitle I – Overview

The purpose of the Title I ARRA funds is comparable to non-ARRA Title I funds

Provides additional support targeted at low income and low performing students

With the added expectation that, like other ARRA funds, the following can be accomplished:

Save and create jobs

Improve student achievement

Thoughtful use of funds to avoid “funding cliff”

Title I – How Much and WhyTitle I – How Much and Why

The ARRA Title I funds are in addition to Title I base grant amounts, but most LEAs will see a drop in their base grant

For 2009-10, statewide Title I regular entitlements declined relative to 2008-09 funded levels by 14.7%, with a median decline of 12.0%

LEAs (excluding independent charter schools) are expected to experience a decline in Title I base grant funding

Although the Title I ARRA funds generally more than make up for the drop in Title I base grants, the drop in base grant funding further adds to the

challenge of what to do once Title I ARRA funds are exhausted

Title I – Allowed UsesTitle I – Allowed Uses

Follow existing Title I rules when determining how to use the new Title I ARRA funds

A general rule to follow – Title I funds may be used at only Title I schools, targeted to the needs of Title I eligible students for activities that are supplemental to the core program

This could include supplemental supports such as pre-K, after school, summer school, and other support programs

IDEA – OverviewIDEA – Overview

While certainly not new, the new ARRA IDEA funding presents new opportunities to finally gain some relief from general fund contributions for special education – at least for a short while

Additional funding is provided for all the components of IDEA, Part B:

Local Assistance

Preschool Local Entitlement

Special Education Preschool Grants

IDEA – Flexibility OptionIDEA – Flexibility Option

MOE calculation is mathematical, but may be utilized to “free” up local contribution from “new” federal funding

Up to 50% of “new” federal funding may be used to offset existing local contributions

The “freed up” funding must be used toward activities authorized under ESEA of 1965 (reauthorized as No Child Left Behind [NCLB])

In effect, this means general operations can be supported under the provisions of Impact Aid

Other Programs – What to ExpectOther Programs – What to Expect

Facilities There are several bond programs and grants for facility projects – LEAs

with projects that are “shovel ready” should apply for such opportunities

School Improvement Grants Expect funding to be available in fall 2009 targeted to low-performing

schools – funding may be significant Title II, D – Enhancing Education Through Technology

$70 million to be divided between formula and competitive grants will be available by fall 2009 This is more than double the current funding levels – significant

increase to a relatively small program

ARRA Stimulus Fund AmountsARRA Stimulus Fund Amounts

SFSF Funds $992,000

Used to offset state revenue limit reduction for 2009-10

Avoided additional cuts to district budget for 2009-10

Title I ARRA Funds $469,256

Additional money given to sites for loss of Title I funds and state categorical funds

Using to provide intervention and support to students

IDEA Funds $443,000

Using to provide intervention and support specific to Special Education students

Reduce Special Education encroachment by 50%

ARRA Stimulus Fund UsesARRA Stimulus Fund Uses

K-2 Created 3 part-time teachers for language intervention and focusing on academic standards

3-5 Created Administrator / Intervention Specialist position

6-8 Created Math Intervention Teacher

9-12 Created 1 English teacher focusing on CAHSEE standards and ELD

Special Education – Created RSP position for caseload requirements

Total Cost of $480,000 through 6/30/2011