State Fiscal Stabilization Fund- Annual Progress Report Highlights

State Fiscal Stabilization Fund The State Fiscal Stabilization Fund (SFSF), authorized under the American Recovery and Reinvestment Act of 2009 provided $48.6 billion dollars to States to create jobs and invest in education reform. These dollars were split into two funds: – $39.8 billion for the Education Stabilization Fund; – $18.8 billion for the Government Services Fund.

Annual Progress Report Overview The Department began awarding SFSF dollars to the 50 States, the District of Columbia, and Puerto Rico as early as April 2009.* The annual progress report (APR) requires all States, the District of Columbia, and Puerto Rico to report on SFSF activities from February 2009 through September of *States were allowed to request pre-award costs for this program to the date of enactment.

Annual Progress Report Overview The APR collected self-reported information on the following areas:* – The State’s distribution of SFSF funds; – The uses of SFSF funds; – Tuition and fees for, and enrollment of, in-State students at public institutions of higher education (IHEs); – The Governor’s estimate of tax increases averted because of the availability of SFSF funds; – The number of jobs estimated to have been saved or created with the funds received; and – The State’s progress in reform areas.** *These areas were prescribed by section of ARRA. **Progress on the States reform areas are reported through the SFSF Phase II and amended application process.

Allocated Funds In FY 2010, the Department obligated $48.3 Billion to States Alternate text for pie chart in the speakers note

SFSF Funds Of the $43.9 Billion - $35.7 Billion went to Elementary and Secondary Education and Public IHEs and $8.2 Billion went to Government Services Alternate text for pie chart in the speakers note

Uses of Education Stabilization Funds by Districts- $28 Billion Alternate text for pie chart in the speakers note

Uses of Education Stabilization Funds by Public IHEs- $7.7 Billion Alternate text for pie chart in the speakers note

Uses of Government Services Funds by States- $8.2 Billion *Although the States made $8.2 Billion available to various entities, many chose to spend those dollars in the next fiscal year. Alternate text for pie chart in the speakers note

Impact on Elementary and Secondary Education- Excerpts from the APR A majority of the School Districts have used their SFSF dollars for salaries and benefits that saved jobs and reduced potential furloughs- “The effect of using these funds for salaries has been the prevention of teacher layoffs. “ – Hawaii “Without the SFSF funds, schools would have cut numerous positions which would have directly affected the education of our children.” - Kansas “Funding teaching positions has helped keep the student- teacher ratios at a level where teachers can more effectively serve students who are most in need…”- Kentucky

Impact on Public IHEs - Excerpts from the APR States have reported that the SFSF dollars did mitigate the magnitude by which the public IHEs had to increase tuition and fees. “Without SFSF funds, it is likely that UC would have been forced to increase fees further to maintain critical functions.” - California “Colorado intentionally utilized ARRA funds to stabilize and sustain higher education funding and keep tuition increases low during the period those funds were available.” – Colorado “The availability of ARRA funds allowed the Governor of Missouri to reach unprecedented agreements with the leadership of all Missouri institutions to not increase tuition for two consecutive years. - Missouri

Resources The individual State APRs can be found at on/performance.html under the STATE APR link. on/performance.html SFSF Phase II applications on/phase-ii-resources.html on/phase-ii-resources.html