American Recovery and Reinvestment Act

The Federal Stimulus Package for Education – 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  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  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: ProgramTimeline (percentages that are listed are relative to total expected funding) State Fiscal Stabilization Fund Approximately 65% issued as of mid-June; 2009 remaining portion Title I, Part AApproximately 40% issued as of June 2009* IDEA Part BApproximately 20% issued as of May 2009* McKinney-Vento/Homeless100% issued in March/April 2009 Title I School Improvement Grants100% 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 for Education – Timing

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  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  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 – 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 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 , statewide Title I regular entitlements declined relative to 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 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 – 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 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 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 Amounts  SFSF Funds $992,000  Used to offset state revenue limit reduction for  Avoided additional cuts to district budget for  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 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