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Selected Stimulus Dollars Released - Stabilization Fund Applications Now Ready

April 7, 2009—On April 1, 2009, U.S. Education Secretary Arne Duncan released selected economic stimulus (ARRA) funds, including ESEA Title I, Part A Grants, and IDEA, Part B Grants monies, and published guidance to accompany the funding. He also announced the application and guidelines for $32.6 billion under the State Stabilization Fund, representing two-thirds of the total dollars in the fund. Funds in the first round will be released within two weeks of an application's approval.

"Given our economic circumstances, it's critical that money go out quickly, but it's even more important that it be spent wisely," said Duncan during the press conference to announce the release of the funds. "The first step toward real and lasting reform that will ensure our students' competitiveness begins with absolute transparency and accountability in how we invest our dollars, educate our children, evaluate our teachers, and measure our success. We must be much more open and honest about what works in the classroom and what doesn't."

According to the Deparment of Education, the guidelines promote comprehensive education reform by receiving commitments from states that they will collect, publish, analyze, and act on basic information regarding the quality of classroom teachers, annual student improvements, college readiness, the effectiveness of state standards and assessments, progress on removing charter caps, and interventions in turning around underperforming schools.

Specifically, the law requires states to show:

• Improvements in teacher effectiveness and commitments that all schools have highly qualified teachers.
• Progress toward college and career-ready standards and rigorous assessments that will improve both teaching and learning.
• Improvements in achievement in low-performing schools by providing intensive support and effective interventions in those schools.
• That they can gather information to improve student learning, teacher performance, and college and career-readiness through enhanced data systems that track progress.

In a letter to governors, Secretary Duncan outlined a set of proposed measurements that states would report on their progress toward the education reforms spelled out in the law.

During the recent AEP Government Relations Committee meeting, Sally Shake, President/CEO of Education Legislative Services, said that when examining how a state will potentially spend the ARRA funds, publishers need to be aware of any relevant deadlines, procedures, or other spending influences--the governors are not acting alone. She gave three examples for California.

1. California districts had to send notices by March 14 to those who will be potentially laid off in the next school year. The number this year was over 26,000. May 15 is the deadline for final layoff notifications. The State Department of Education is hoping that the districts will use the stabilization funds to avert these layoffs. Other states may not have the same situation, but they may have other deadlines that will force them to expedite the release of the stabilization funds.
    
2. In California and several other states, the legislatures’ rules state that federal funds must be reappropriated to ensure that the monies go to the appropriate agency for distribution. This means that once the money comes in, the legislature needs to take action and may hold hearings to get recommendations from other sources. Look at the legislative calendars for each state to see when hearings are scheduled. California has already started this process.
    
3. California has a Legislative Analyst’s Office, which is the non-partisan fiscal and policy advisor. This office has examined California’s fiscal well being and determined that general revenues will decrease by another $8 billion in school year 2009-10 in addition to an accompanying drop in $3.6 billion from other sources. The office has also offered advice regarding the stabilization funds and said that they could be used to attain general fund savings.
   

For more information

"$44 Billion in Stimulus Funds Available to Drive Education Reforms and Save Teaching Jobs"
U.S. Department of Education

"Implementing the Recovery Act"
Guidance, Fact Sheets, and Application
U.S. Department of Education

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