1. www.bakerdaniels.com American Recovery & Reinvestment Act of 2009 Education-related Stimulus Appropriations

2. 2 “Typically, school district spending on textbooks, supplemental resources, and technology ranges from 2 to 4 percent of [a school’s] overall budget… The stimulus could boost spending in these areas into a range of 5 to 10 percent. ….5 to 10 percent of $100 billion is a pretty large infusion into this market.” Textbook publisher, quoted in Education Week, May 13, 2009

3. Where are the opportunities?  Companies in search of education-related opportunities are focusing on 3 main areas: –Products that are good candidates for one- time funding (such as technology, computers, data systems) –Services (such as how to use stimulus funding to turn around a failing school) –Consulting (how to get even more stimulus dollars) 3

4. Where are the opportunities?  Companies that offer help and materials for special education and for struggling schools could benefit the most, since special education and Title I programs are getting a combined $15 billion nationally from the stimulus ($492 million in Indiana)  Because most school districts are expected to spend their funding within the next 6-8 months, existing companies with solid track records may prevail over start-ups. 4

5. Some things you want to know about ARRA… A.When will the money begin flowing? B.Who is eligible to receive education stimulus funds? C.How do I get my share of the stimulus money?

6. $44 Billion Available in April  State Stabilization - $32.5 billion (67%)  IDEA, Parts B & C - $6.1 billion (50%)  Title I, Part A - $5 billion (50%)  Vocational Rehabilitation - $270 million (50%)  Independent Living - $52.5 million (100% of formula monies; $87.5 million in competitive grants to follow)  Homeless Youth - $70 million (100%)  Impact Aid - $40 million (100% of formula monies; $60 million in competitive grants to follow)

7. Additional $49 Billion Available Later in 2009  Pell & Work Study - $17.3 billion (100%)  State Stabilization - $16.1 billion (33%)  IDEA, Parts B & C - $6.1 billion (50%)  Title I, Part A - $5 billion (50%)  Title I School Improvement - $3 billion (100%)  Enhancing Education through Technology - $650 million (100%)  Vocational Rehabilitation - $270 million (50%)  Statewide Data Systems - $250 million (100%)  Teacher Incentive Fund - $200 million (100%)  Teacher Quality Enhancement - $100 million (100%)

8. What is Indiana getting?  State Stabilization - $1 billion  IDEA - $271 million  Title I - $221 million  Vocational Rehabilitation & Independent living - $15 million  Homeless Youth - $1 million  Federal Work-Study - $4 million  Educational Technology - $10.9 million 8

9. Advance Core Reforms: Assurances College- and career-ready standards and high-quality, valid, and reliable assessments for all students, including ELLs and students with disabilities Pre-K-to-higher education data systems that meet the principles in the America COMPETES Act Teacher effectiveness and equitable distribution of effective teachers Intensive support and effective interventions for lowest- performing schools

10. State Fiscal Stabilization Fund $53.6 billion Governors $48.6 billion Public Elementary, Secondary, and Institutions of Higher Education 81.8% ($39.8 billion) Education, School Modernization, Public Safety, or other Government Services 18.2% ($8.8 billion) The Secretary $5 billion Race to the Top ($4.35 billion) What Works and Innovation ($650 million) Formula Competitive

11. State Fiscal Stabilization Fund INDIANA Governor Daniels ($1 billion) Public Elementary, Secondary, and Institutions of Higher Education 81.8% ($823 million) Education, School Modernization, Public Safety, or other Government Services 18.2% ($183 million) The Secretary (TBD) Race to the Top (TBD) What Works and Innovation (TBD) Formula Competitive

12. State Fiscal Stabilization Fund (Formula) How much?  $48.6 Billion –Education (81.8%) –Government Services (18.2%) Purpose: Restoring state support for education and other government services. Timelines: Money likely to be distributed in two parts Strings Attached: Application and assurances by Governor and heavy reporting Indiana’s share: $1 billion

13. SFSF Education Fund: Uses  Education funds for elementary and secondary must run through State’s primary funding formulae  LEAs may use funds for any activity authorized under ESEA, IDEA, Adult Ed, or Perkins, including modernization of school facilities and salaries to avoid teacher layoffs  LEAs encouraged to use funds for activities that advance progress on the assurances and drive lasting results without unsustainable recurring costs  General Assembly is expected to appropriate nearly $700 million in SFSF funds through the school funding formula.

14. SFSF Education Fund: Uses  IHEs may use education funds for: –education and general expenditures –mitigating tuition and fee increases for in-State students –modernization, renovation, and repair of facilities used for instruction, research, student housing –General Assembly is expected to appropriate $130 million to IHEs in biennial budget.

15. SFSF Government Fund Services: Uses  States may use for education, public safety and other government services  May include modernization & renovation of public schools and public and private college facilities.  Failed Senate budget appropriated entire $183 million, including $25 million for 21 st Century Fund, $10 million for MIND, $22.5 million for CORE research, & $65 million for SASE.

16. State Fiscal Stabilization Fund (Competitive) How much?  $5 Billion –Incentive Fund –Innovation Fund ($650M) Purpose: Competitive grants to stimulate education reform Timelines: Grants for FY 2010 Strings Attached: Application and assurances by Governor and heavy reporting

17. “Race to Top” / “What Works and Innovation”  “Race to the Top” – $4.35 billion competitive grants to States making most progress toward the assurances  “What Works and Innovation” – $650 million competitive grants to LEAs and non-profits that have made significant gains in closing achievement gaps to be models of best practices. Purpose is to “scale up” promising programs such as Teach for America and New Leaders for New Schools.  2010 grant awards will be made in two rounds – late 2009, 2010

18. Title I, Part A (Targeted & EFIG) How much?  $10 Billion –$5 Billion for targeted –$5 Billion for incentive Purpose: To help children in poverty meet challenging state academic standards Timelines:  ED to rush to get money to SEAs, LEAs, and Schools  Intended for 2009-2010 & 2010-2011 school years Strings Attached:  Congress ‘expects’ some of the funds to be used for early childhood programs and activities Indiana’s share: $169 million

19. Title I, Part A (Targeted & EFIG)  Fort Wayne Community Schools - $8.7 million  East Allen County Schools - $1.7 million  Northwest Allen County Schools - $215,000  Southwest Allen County Schools - $0

20. Title I, Part A (Targeted & EFIG)  Indianapolis Public Schools – $23.4 million  MSD Wayne Township - $3.9 million  MSD Perry Township – $2.7 million  MSD Warren Township – $2.2 million  MSD Lawrence Township - $2 million  MSD Washington Township – $1.9 million  MSD Decatur Township - $1.1 million

21. Title I, Part A (School Improvement) How much?  $3 Billion Purpose: To assist schools identified for improvement, corrective action, and restructuring. Timelines:  ED to rush to get money to SEAs, LEAs, and Schools  Intended for 2009-2010 & 2010-2011 school years Strings Attached:  Congress ‘directs’ 40 percent of the funds to be used for middle and high schools Indiana’s share: $51.8 million

22. Impact Aid Construction How much?  $100 Million –$60 million for 8007a –$40 million for competitive grants Purpose: Competitive grants for emergency repairs and modernization of school facilities Timelines:  No specific requirement in legislation Strings Attached:  ‘Shovel ready’ projects Indiana’s share: $0

23. Education Technology (Title II-D) How much?  $650 Million Purpose: To improve student academic achievement through the use of technology Timelines:  Intended for 2009-2010 & 2010-2011 school years Strings Attached: High-Need Local Educational Agency Indiana’s share: $10.9 million

24. McKinney Vento Homeless Assistance How much?  $70 Million Purpose: Mitigate the effects of the economic crisis on homeless youth Timelines:  Intended for 2009-2010 & 2010-2011 school years Strings Attached: Segregation of homeless students is prohibited Indiana’s share: $959,295

25. Potential uses  Supplemental educational services  Health referral  Professional development  Transportation to school of origin  Before- and after-school programs  Parent education & training  School supplies  Coordination with service providers

26. Teacher Incentive Fund How much?  $200 Million Purpose: To develop and implement performance-based teacher and principal compensation systems Timelines:  Not specifically specified in law Strings Attached: Compensation systems must consider gains in student achievement and classroom evaluations Indiana’s share: TBD

27. IDEA, Part B (Sec. 611) How much?  $11.3 Billion Purpose: To assist States to provide special education and related services to children with disabilities Timelines:  Intended for 2009-2010 & 2010-2011 school years Strings Attached: Reporting requirements Indiana’s share: $253 million

28. IDEA, Part B (Sec. 611)  Fort Wayne Community Schools - $9.2 million  East Allen County Schools - $2.5 million  Northwest Allen County Schools - $1.3 millon  Southwest Allen County Schools - $1.4 million

29. IDEA, Part B (Sec. 611)  Indianapolis Public Schools – $10.3 million  MSD Wayne Township - $3.9 million  MSD Perry Township –$3.9 million  MSD Warren Township –$3.1 million  MSD Lawrence Township - $4 million  MSD Washington Township –$2.9 million  MSD Decatur Township - $1.5 million  Franklin Township - $2 million

30. IDEA, Part B (Sec. 611)  Carmel-Clay – $3.2 million  Noblesville - $2 million  Hamilton-Southeastern – $3.5 million  Westfield-Washington - $1.3 million  Center Grove - $1.6 million  Zionsville - $1.1 million  Brownsburg - $1.6 million  Avon – $1.8 million

31. IDEA, Preschool Grants (Sec. 619) How much?  $400 Million Purpose: To provide special education and related services to preschool age children with disabilities Timelines:  Intended for 2009-2010 & 2010-2011 school years Strings Attached: Reporting requirements Indiana’s share: $9.2 million

32. IDEA, Preschool Grants (Sec. 619)  Fort Wayne Community Schools - $342,378  East Allen County Schools - $93,175  Northwest Allen County Schools - $47,304  Southwest Allen County Schools - $51,940

33. IDEA, Preschool Grants (Sec. 619)  Indianapolis Public Schools – $383,445  MSD Wayne Township - $144,962  MSD Perry Township –$145,363  MSD Warren Township –$114,682  MSD Lawrence Township - $148,125  MSD Washington Township $107,698  MSD Decatur Township - $57,055  Franklin Township - $75,024

34. IDEA, Preschool Grants (Sec. 619)  Carmel-Clay – $118,703  Noblesville - $74,395  Hamilton-Southeastern – $130,441  Westfield-Washington - $47,648  Center Grove - $57,821  Zionsville - $38,879  Brownsburg - $60,275  Avon – $68,382

35. IDEA, Infants & Toddlers (Sec. 619) How much?  $500 Million Purpose: To provide early intervention services for infants and toddlers with disabilities and their families Timelines:  Intended for 2009-2010 & 2010-2011 school years Indiana’s share: $8.6 million Timelines:  Not specifically specified in the law

36. Voc/Rehab State Grants How much?  $540 Million Purpose: Employment supports Timelines:  Not specifically specified in the law Indiana’s share: $12.3 million

37. Independent Living Programs How much?  $140 Million –$18.2M State Grants –$87.5M Independent Living Centers –$34.3M Older Blind Purpose: To supports projects that provide independent living services Timelines:  Not specifically specified in the law

38. Indiana’s share:  Independent Living State Grant - $281,753  Centers for Independent Living - $1.8 million  Services for Older Blind Individuals - $728,054

39. Pell Grants How much?  $15.84 Billion Purpose: To allow for a maximum Pell Grant award $5,350 Timelines:  For 2009-2010 school year

40. HEA Title II, Part A How much?  $100 Million Purpose: To make lasting changes in the ways teachers are recruited, prepared, licensed, and supported. Timelines:  Not specified in legislative history Strings Attached: New rules from recent HEA reauthorization

41. Potential Uses of PreK-12 ARRA Funds to Drive Long-Term Educational Reform and Improvement Developing rigorous standards and high- quality assessments  Increase student participation in rigorous college and career courses  Develop and adopt valid and reliable formative assessment systems  Purchase or adapt high quality curriculum aligned to standards with embedded assessments

42. Potential Uses of PreK-12 ARRA Funds to Drive Long-Term Educational Reform and Improvement Turning around low-performing schools  Close and re-open schools with new leadership and staff, new instructional programs, and extended learning time  Create summer programs and 9 th -grade academies so that students are equipped to succeed in algebra and college-preparatory classes  Launch a comprehensive literacy program

43. Potential Uses of PreK-12 ARRA Funds to Drive Long-Term Educational Reform and Improvement Establishing data systems and using data for improvement  Develop or enhance data systems that provide teachers information on student progress  Train educators to use data for decision-making to improve instruction  Implement online Individual Education Program (IEP) aligned with standards

44. Potential Uses of PreK-12 ARRA Funds to Drive Long-Term Educational Reform and Improvement Improving results for all students  Strengthen early learning programs  Use technology to improve teaching and learning  Increase student awareness of college and career options and provide transition supports  Invest in school modernization that advances up-to-date science labs, energy efficiency, community, and early childhood facilities

45. National Science Foundation How much?  $3 Billion –Incentive Fund –Innovation Fund ($650M) Purpose: Competitive grants to stimulate education reform Timelines: Grants for FY 2010 Strings Attached: Application and assurances by Governor and heavy reporting

46. Your Challenge  Leverage “recovery funds” to stimulate improvements and innovation in education to significantly improve teaching and learning.

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