American Recovery and Reinvestment Act of 2009 NCACE Institute Greensboro, 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

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 current allocation procedures for 1003(g)?

ARRA Title I Funds 85% expended by end of FY 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 GUIDANCE Funds 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 NCs 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

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 /recovery/index.html /recovery/index.html Fact Sheet (Updated April 1, 2009) Fiscal guidance (April, 2009) – Note use of funds ARRA presentation (April 3 rd ) – Note data elements for SFSF – Note information on other funds (e.g., McKinney-Vento)

Resources at DPI bs/resources/#stimulus bs/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 Improvement Planning process may accomplish this 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 states that for schools the, allocation amount must be large enough to provide a reasonable assurance that a school can operate a Title I program of sufficient quality to achieve 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 for the supplement vs. supplant provision of Title I funds. However, cases of extreme budget shortfall often provide a rebuttal for the presumption of supplanting.

Will the state be able to hold the ARRA funds until July 1 to avoid exceeding the 15% carryover? Although 50% of ARRA funds that will be made available in April, ARRA funds for Title I, A are considered part of the total Title I allocation. Carryover provisions 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 considered part of the total Title I allocation. The carryover cap will be considered on the total of the two fund streams.

Will LEAs be able to request a waiver to exceed 15% carry-over limit for SY ? 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 of the total Title I allocation and the use of funds must adhere to all applicable statutory Requirements 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 total Title I allocation and the use of funds must adhere to all applicable statutory requirements under Title I, Part A. Qualifying students are considered those 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.