NSTA
Legislative Update
April 6, 2009
$44 Billion in Education Stimulus Funds Now Available to States and Districts
Secretary of Education Arne Duncan announced last week that $44 billion for states and schools is now available under the American Recovery and Reinvestment Act (ARRA) of 2009.
The first round of stimulus funding includes $32.6 billion under the State Stabilization Fund, which represents two-thirds of the total dollars in the fund. Of this amount $26.6 billion would be to save jobs and improve K–12 and higher education and a separate $6 billion in a Government Services Fund would pay for education, public safety or other government services.
According to the Department of Education funds in the first round will be released within two weeks after the state’s application is approved. A second round of stabilization funds will be released later this year. A third round of funding—$5 billion in competitive grants called the "Race to the Top" fund—will be awarded to states that are most aggressively pursuing reforms. States competing for Race to the Top funds will be judged on how well they are using the first round of stabilization and Title I funds to advance education reforms.
But while the stabilization fund was structured to relieve the immediate economic crisis, it is also intended to boost student achievement. To get their share of funding, governors must make assurances to advance core reforms in their states, including improving teacher quality, raising academic standards, intervening in failing schools more effectively and improving data systems on student learning, teacher performance, and college and career-readiness.
The Department has issued a set of proposed measurements that states would report on their progress toward the education reforms spelled out in the law. States would also have to report the number of jobs saved through Recovery Act funding, the amount of state and local tax increases averted, and how funds are used.
To receive State Stabilization Funds, states must also meet maintenance-of-effort (MOE) requirements of the law by showing that 2009 state education budgets at least meet 2006 state education budget levels.
Part 2 of the State Stabilization Fund Application, available later this year, will allow states to apply for the last third of the stabilization funds, which includes $13.1 billion for education and $2.9 billion designated for the Government Services Fund.
In addition to the state stabilization funds, $11.4 billion is available immediately under the Title I program (which serves low income schools), IDEA (which serves students with disabilities), Vocational Rehabilitation and Independent Living programs. A second round of Title I and IDEA funds will be available later in the year.
"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. "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."
"Every dollar we spend must advance reforms and improve learning. We are putting real money on the line to challenge every state to push harder and do more for its children,"