1. American Recovery and Reinvestment Act of 2009 (ARRA) Impact on Districts Receiving Title I, Part A Funds JoLynn Berge – Cal Brodie – Petrea Stoddard

2. American Recovery and Reinvestment Act State Fiscal Stabilization Funds Increases to Formula Grants U.S. Dept. of ED Secretary’s National Amount Governor’s Portion $1.0B WA State Title I-A Allocation ($135.3 M) School Improvement Grants (1003 (g) Funds) Educational Technology Grant Homeless Grant IDEA, Part B & 619 Title I-A Allocation ($135.3 M) School Improvement Grants (1003 (g) Funds) Educational Technology Grant Homeless Grant IDEA, Part B & 619 Competitive Grant Applications Based on how well the state has used the Governor’s Portion of the Stabilization Funds 18.2% $182.4 M Used for Public Safety Initiatives – can be used for education 81.8% $819.9M Distributed between K-12 and Higher Education to cover budget shortfalls Based on State Funding Formulas Leftover Funds – those funds that were not needed to cover budget shortfalls Funds will be distributed to LEAs based on their portion for the Title I Allocations NOT Title I Funds – can be used for activities under ESEA, IDEA, Perkins, or for Building Modernization 2 Innovative Grants Competitive $650 M Direct to school districts from U.S. Dept of ED Incentive Grants Competitive $4.35 B Awarded to States

3. Purpose Provide additional assistance to high poverty schools to – improve instruction and learning, and – close the achievement gap [A-1]

4. Guiding Principles Spend funds quickly to save and create jobs Improve student achievement through school improvement and reform Ensure transparency, reporting and accountability Invest ARRA one-time funds thoughtfully to minimize the “funding cliff” [A-1]

5. Considerations Implement evidence-based strategies to help build sustainable capacity for improving teaching and leaning Consider early childhood education Consider programs serving secondary schools [A-2]

6. 2009 Funds Title I, Part A ARRA funds are in addition to regular Title I, Part A allocation Separate CFDA Numbers – 84.010A=Regular Title I, Part A allocation – 84.389A=ARRA Title I, Part A funds State must inform districts of amount of each Hold harmless rates based on total of both [A-2, A-4]

7. Basis of Allocation/Eligibility ½ Target Grants [1125(a)(1)] ½ Education Finance Incentive Grants (EFIG) [1125A(c)] Same criteria—Per 2007 Census data, October 2008 caseload data for N and D students, and October 2007 caseload data for foster and temporary aid to needy families (TANF) – At least 10 formula children – Formula children = at least 5% of 5-17 population [A-5-9, Section B]

8. Maintenance of Effort Applies—[Sections 1120A and 9521] With in 90% of preceding fiscal year for – Combined fiscal effort per student, or – Aggregate expenditures May request waiver once every 3 years [1127] [C-1,Non Regulatory Guidance, Title I Fiscal Issues, ESEA1120A]

9. Maintenance of Effort ED Secretary may approve waiver for state and/or districts to consider State Fiscal Stabilization Funds (SFSF) as state funds Expenditures in 2009-10 would first affect MOE in 2011-12 Even with waiver, remain Federal funds for – Comparability – Supplement Not Supplant – Reporting and Recordkeeping [C-1-7, ARRA Section 14012(c-e), ESEA 1120A]

10. Supplement Not Supplant Title I, Part A funds subject to SNS requirements – 1120A(b) and (d) – 1114(a)(2)(B) Rebuttals and use of exclusion may be applied where appropriate Note: Supplement not supplant for Title I, Part A regular and ARRA funds but not for SFSF funds [C-8-10]

11. Supplement Not Supplant What would the district do if there were no Title I, Part A Federal funds? Supplanting if – Activity is required by local, state or other Federal law – District conducted activity in prior year with non- Federal funds – District uses non-Federal funds to provide same activity for non-Title I students or in non-Title I schools [C-8-10, 1120A]

12. Supplement Not Supplant Rebuttal possible if – Can demonstrate source of funds significantly reduced or eliminated – Can demonstrate educational priorities for use of non- Federal funds has changed – Activity allowable under Title I, Part A program requirements – Use of Title I, Part A funds meets general standards of OMB Circular A-87 – Documentation contemporaneous with decision—Not after the fact [C-8-10, 1120A]

13. Supplement Not Supplant State Fiscal Stabilization Funds are Federal funds and do not need to be taken into consideration when determining SNS [C-10]

14. Comparability Applies to ARRA Title I, Part A funds State Fiscal Stabilization Funds are not included because they are Federal, not state or local funds [C-11-12, ESEA 1120A]

15. Period of Availability Title I, Part A ARRA funds are FY 2009 funds – Initial period of availability through September 30, 2010 (85% unless waiver) – Remaining (15% or less) by September 30, 2011 – See 34 CFR 76.707 for obligation chart [C-13, NCLB Section 1127, 34 CFR Section 76.707]

16. Carryover Title I, Part A carryover rules apply At least 85% must be obligated by September 30, 2010 Remainder is consider carryover and must be obligated by September 30, 2011 Districts may apply for a waiver from this requirement no more often than once every 3 years [ESEA Section 1127, 34 CFR Section 76.707, C-13-17 & 19]

17. Carryover Carryover provisions apply ONLY to the Title I, Part A Recovery and Regular funds School Improvement funds under Section 1003(a) and (g) are not subject to the carryover provision [C-18]

18. Carryover OSPI will be requesting a waiver of the ESEA Section 1127 carryover requirement [C-20]

19. Cash Management Cash management rules apply Not an issue if districts submit expenditures on reimbursement basis [C-21, 31 CFR Section 205, 34 CFR Section 80.21(b) & (i)]

20. Indirect Costs Use the restricted indirect rate for 2009-10 Rates are available on iGrants Adjustments may be needed during the year OSPI will monitor this [C-22]

21. Requirements Title I, Part A Recovery funds are subject to – All applicable ESEA requirements, – Title I, Part A regulations – Other applicable laws and regulations – Applicable OMB Circulars A-87—Allowable Costs A-133—Audit Requirements [D-1]

22. Reservations (Set Asides) The following Title I, Part A set asides apply – Comparable services to homeless students [1113(c)(3)(A)] – Comparable services to neglected and delinquent children living in institutions or community day school programs [1113(c)(3)(B)] – Financial incentives for teachers (optional) Limited to 5% of allocation [1113(c)(4)] – Equitable services to eligible private school children, teachers and parents [9401(c)(5) and non-regulatory guidance (requires consultation prior to allocation) [D-2-7]

23. Reservations (Set Asides) At least 10% of school’s allocation for professional development for schools in Step 1 or above [1116(b)(3)(A)(iii)(I)] At least 10% of the district’s allocation for professional development if the district is in Step 1 or above [1116(c)(7)(A)(iii)] At least 1% of district allocation for parent involvement activities if allocation is over $500,000 [1118(a)(3)(A)] Up to 20% of district allocation for transportation for public school choice (Step 1 and above) and supplemental educational services (Step 2 and above), if sufficient demand, for schools [1116(b)(10)] [D-9]

24. Reservations (Set Asides) Set asides must take both regular and recovery Title I, Part A funds into consideration when determining if set asides apply – For example, to determine if 1% parent involvement applies add both Title I, Part A funding sources together, if over $500,000 set aside applies [D-10]

25. Waivers ED recommends waivers be submitted after the guidance is available to ensure the requests contain all relevant information There is no requirement to apply for any waiver Waivers will be in effect for the two years the funds are available for obligation [F-1, F-4, F-5, ESEA Section 9401(c)]

26. Waivers OSPI will request waivers allowable for certain set asides Some set asides may NOT be waived – Homeless – Neglected and/or delinquent – Parent involvement – Equitable share to eligible private schools [D-11]

27. Not Eligible for Waiver In addition to the set asides discussed previously, the following requirements may NOT be waived – Allocation and distribution of funds – Comparability of services – Use of Federal funds to supplement not supplant non- Federal funds – Civil rights requirements – Prohibitions regarding State aid [Section 9522], Use of funds for religious worship or instruction [9505] Activities [9526]

28. Not Eligible for Waiver Ranking and allocating of funds to schools [1113(a) and (b)] Note: ED may waive maintenance of effort requirements [1125A(e)(3), 9521(c)] [F-5]

29. Waivers Requested OSPI has or plans to request the following waivers as permitted for the Title I, Part A Recovery funds – At least 10% of district allocation and 10% of school allocation for professional development for districts and/or schools in improvement – Up to 20% set aside for transportation for public school choice and SES for schools in improvement – Inclusion of Title I, Part A ARRA funds in determining per- child amount for SES – Carryover cap of no more than 15% every three years – Maintenance of effort requirements [D-11, 13-14]

30. Funding for Schools Ranking and allocation rules under Title I, Part A apply to Title I ARRA funds Additional eligible schools may be reached Regular and ARRA Title I, Part A funds considered together in determining per pupil allocations [D-15]

31. Allocations to Schools in Improvement District may not reduce the Title I, Part A allocation to a school identified for corrective action or restructuring by more than 15% when reserving funds for public school choice and SES [D-12, ESEA 1116(b)(10)(D)]

32. Ranking and Allocating Ranking and allocation rules apply to regular and ARRA Title I, Part A funds Both sources must be considered in the per pupil amounts Eligible schools not previously served could be reached [D-15, ESEA Section 1113, 34 CFR Section 200.78]

33. Civil Rights Receipt of federal funds requires compliance with all civil rights laws that prohibit discrimination [D-16, Notice on Civil Rights Obligations Applicable to the Distribution of Funds under the American Recovery and Reinvestment Act of 2009]

34. State Reporting Requirements Detailed information on State and district use of Title I, Part A Recovery funds will be required in quarterly reports and made public at www.Recovery.gov www.Recovery.gov State reporting will include – Total amounts of Title I, Part A ARRA funds received and expended or obligated – Project/activity name, description and evaluation of completion status on which Title I, Part A ARRA funds were used – Estimate of number of jobs saved or created with Title I, Part A ARRA funds Report due no later than ten days after initial calendar quarter in which State first receives Title I, Part A ARRA funs or July 10, 2009 ED is developing a common reporting form Additional guidance is expected—soon [E-1, Section 1512 of ARRA]

35. District Reporting Requirements Each district which receives Title I, Part A ARRA funds must file a school-by-school listing of its per-pupil education expenditures from State and local sources during the 2008-09 school year – Due to OSPI by December 1, 2009 – OSPI must report to ED by March 31, 2010 [E-3]

36. Accounting for Title I ARRA Funds Separate reporting requirements for Title I, Part A ARRA funds and regular Title I, Part A funds, therefore, districts must – Account and report for separately Different CFDA Numbers – Title I, Part A regular = 84.010A – Title I, Part A ARRA = 84.389A – Must maintain accurate, complete and reliable documentation for all ARRA expenditures – Information on fund uses publicly available on www.Recovery.gov www.Recovery.gov [E-4-5]

37. Monitoring of ARRA OSPI must monitor grant activities to ensure compliance with all applicable Federal requirements ARRA Recovery Act Accountability and Transparency Board will oversee compliance Instances of potential fraud, waste and abuse must be reported promptly at 1-800-MIS- USED or oig.hotline@ed.govoig.hotline@ed.gov [E-5, Section 1553 of ARRA]