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JP Online NEWSFLASH: ARRA/Education Stimulus Update
April. 14, 2009
In This Issue...
Title 1
Special Education
SFSF
Areas of Interest
More Information
Greetings!

JP Associates is carefully tracking education-related developments of the American Recovery and Reinvestment Act of 2009.  This update is the first of several we'll be sending so you'll be prepared when the funds become available for your district.
Title I:
 
About $5 Billion of Title I formula funds will be added to the regular Title I allocation (probably will be $6-$7 billion).  This money (the $5 billion) is scheduled to be distributed on July 1 with the remainder of the regular funding formula funding ($6-$7 billion) going out after October 1.
 
It is projected that large urban school districts with high percentages of low income students will stand to gain the most.
 
The expected course of action is that districts will be advised not to expand Title I pograms, but to use the stimulus funds to invest in instructional staff, with professional development being a focus. At the same time districts are advised not to used stimulus funds for large recurring costs.
 
The final version of the Title I guidance would  "direct the Department to encourage States to use 40 percent of their School Improvement allocation for middle and high schools, as proposed by the Senate."  This is based on the fact that although middle schools make up only 15% of all Title I schools, they do make up a larger percentage schools that have failed to meet AYP for six or more years.
Special Education

Special Education stimulus funds equal about 12.2 billion. $400 million is slated for the Family and Infants Program and an additional $500 million for early intervention pre-K programs. Slightly half of the $2.2 billion for Head Start will be allocated to states in July of 2009, with the remainder in July 2010. 
State Fiscal Stabilization Fund
 
There is $53.6 billion allocated for the State Fiscal Stabilization Fund (SFSF) allowing for flexibility for school modernization. Funds will be allocated as follows:
 
       61 % based on population ages 5-24
       39 % based on total state population
 
There is slightly over $40 billion to be allocated to K-12 and institutes of higher education to restore state aid to the greater of Fiscal Year 2008 or 2009 level. Acceptable use of these funds would be the same as those authorized under:
 
       ESEA
       IDEA
       Perkins Act of 2006
 
Governors must provide the following assurances to receive SFSF funds:
 
       Restore state funds to Fiscal Year 2006 levels
       Take steps to achieve equity in teacher distribution
       Establish longitudinal data systems
       Enhance the quality of academic assessments related to        ELL and students with disabilities
 
After funds are allocated to restore previously cut state funding, remaining funds must be allocated to school districts based on the Federal Title I Formula.
Areas of Interest:

Insiders are recommending that a strong focus be placed on IDEA ($12.2 billion) and Title I ($10 billion) funds. Special focus should be made on the local adjustment provision.

Depending on how individual governors plan to use monies, it is not certain how much of the stabilization funds districts will be able to access. Half of the IDEA funding amount was scheduled to be allocated to the states by the end of March and once received by the states, the states have 30 days to release it to districts.
 
It appears that the most flexible stream of funding is the local adjustment provision. A little used option, it allows a district to use up to 50% of the increase in IDEA funding from one year to the next to supplant local funds used for IDEA Special Education Funds. These funds could be allocated for professional development.
 
You can click on the following link to view how much your state is allocated:
 
http://edlabor.house.gov/documents/111/pdf/publications/ARRA-estimatedstateeducationfunding-20090213.pdf

For More Information:

Please contact Robert Harris, Executive Director of Programming.

rharris@jponline.com
800.969.7234
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