1 Michigan and the American Recovery and Reinvestment Act of 2009 August 11, 2009 State Board of Education

2 Update Since June State Board Meeting Grant Applications: Reviews and Timelines GAO Reports and Round III Visit Race to the Top Common Standards

3 ARRA Grant Programs: Updates ARRA Education Stabilization   Used to restore cuts to FY2009 State School Aid   762 allocations; 760 applications received; 760 approved   Two districts declined federal funding   $541 M/$600 M paid out ARRA Equipment Grant   Awards to 104 school districts/agencies (167 buildings) participating in the National School Lunch Program   $2.5 M in grant funds awarded/$17 M requested   Over 500 school districts/agencies ( >1200 building applications) submitted applications ARRA McKinney-Vento Homeless Education Grant   29 consortium applications received   All 29 will be funded   Awards approved by Superintendent on August 5

4 ARRA Grant Programs: Updates (Cont’d) ARRA Title I, Part A, Improving Basic Programs   723 allocations; 543 applications received; 46 applications approved   LEAs applied on preliminary allocations; $0 drawn down   LEAs will have access to 90% of approved funds   LEAs will amend applications on final allocations in November ARRA Title I, Part D, N or D Prevention/Intervention   52 allocations; 28 applications received; 3 applications approved   LEAs applied on preliminary allocations; $0 drawn down   LEAs will have access to 90% of approved funds   LEAs will amend applications based on final allocations in November ARRA TEFAP   Administrative funds distributed to 30 agencies   $995,000 admin funds distributed   $3.9 M Commodity Food Entitlements awarded

5 ARRA Grant Programs: Updates (Cont’d) ARRA Special Education Flowthrough   59 allocations; 57 applications; 13 approved   $26 M/$200 M approved (50% award) ARRA Special Education Preschool   57 allocations; 50 applications; 27 approved   $1.64 M/$6.7 M approved ARRA Early On Michigan   57 allocations; 54 applications; 35 approved   $4.55 M/$6.17 M approved

6 ARRA Grant Programs: Updates (Cont’d) ARRA Title II, Part D, Enhancing Education Through Technology   50% Formula; 50% Competitive   Guidance released week of July 27   Formula   LEAs will apply on final allocations at a later date   Competitive   Michigan’s $11.6 million ARRA Title IID competitive grant announcement was released July 23, 2009   Due date for applications is September 15, 2009   Applications in MEGS starting September 1, 2009

7 ARRA Grant Programs: Challenges All:   No new MDE staff for monitoring and reporting   MEGS taxed with increased volume of applications   Furlough days to impact future operation   Availability of administrative funding inadequate   Increased level of reporting and transparency IDEA/Special Education:   Districts are already required to provide all services required on a student’s IEP   Building flexibility in allowable uses of funds to promote better outcomes for students with disabilities beyond State Aid Act limitations TAFAP:   No admin funds for the State/MDE; changing guidance from USDA

8 ARRA Grant Programs: Challenges (Cont’d) McKinney-Vento Homeless   Tight federal timelines (summer months) impacted level of district responses to consortium invitations   Early release of SRSD total count was necessary to calculate allocations cut close to August 8 th federal deadline for grant awards to districts Equipment Grant   At the federal level, limited notice, guidance and time period allowed for state grant activities.   USDA criteria limited awards to school districts/agencies with higher free/reduced price eligibility for meals, but all schools need funds for food service equipment.

9 ARRA Grant Programs: Successes Special Education:   Increased collaboration across OSE-EIS areas as well as LEAs on appropriate uses of IDEA funds   Helped districts develop appropriate long-term strategies supporting the principles of ARRA and outcomes for students with disabilities McKinney-Vento Homeless   Expanded homeless grant coverage in MI from 24 non-funded counties to only 9 non-funded counties for grant cycle   ARRA projects focused on building capacity for future Homeless Education programming throughout the State Office of Field Services   Estimated allocations for major programs released by June 30, 2009

10 ARRA Grant Programs: Successes (Cont’d) ARRA Equipment Grant   Schools given opportunity to purchase needed equipment that would not have occurred w/o grant funds.   Overwhelming number of grant applications provides an indicator of need for future funding. Education Stabilization Grant   Impact of State Aid reductions mitigated by expedited approvals of applications   All districts with submitted application had opportunity to draw funds before July State Aid reduction

11 GAO Reports and Site Visits Reports to Congress Bimonthly reviews First and second reports – April 23 and July 8, 2009 Full reports available at Third report due – September 23, 2009 Round III Michigan visit – July 28, 2009 Concentrated on fewer programs Focus on SFSF, Title I, IDEA allocations Interested in internal controls, tracking, reporting Developing an electronic survey process Met with MDE staff and Detroit Public Schools Future Visits Undetermined

12 Race to the Top $4 Billion Two Phases Phase I – Open in late 2009 Phase II – Open in Spring 2010 Separate Standards and Assessment Competition

13 Race to the Top (Cont’d) Comprehensive Approach to Four Reform Areas Standards and Assessments Great Teachers and Leaders Data Systems to Support Instruction Turning Around Struggling Schools

14 Race to the Top (Cont’d) Emphasis on STEM (Science, Technology, Engineering and Math) Expansion of Statewide Longitudinal Data Systems P-20 Alignment School-level Conditions for Reform and Innovation

15 Race to the Top (Cont’d) State-led Common Standards and Assessment $350 million set aside for separate competition 46 states and 3 territories formed consortium High School Exit Standards – public release mid- August K-12 Standards by end of December 2009 Eligibility for Race to the Top contingent on adopting standards and assessments