IDEA Money Watch
Vol. 2, Number 3         April 2010
In This Issue
The Balance Sheet
State-by-State Spending Update
Excess Cost Clarified
New Report Says Close MOE Loophole
State Directors Oppose Data Collection
LearningPort Launch
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Blog Bytes
 
Check out these IDEA Recovery Act reports from around the states:

- New Jersey: Districts redirect funds intended for special ed

- Indiana: Districts announces special cuts for next year

- Michigan: White Boards are all the rage

- Wisconsin:  State turns down District plan to build "seclusion areas" with IDEA ARRA

- Colorado: BOCES uses IDEA ARRA funds to pay for mismanagement

- Utah: District uses IDEA ARRA funds to build segregated school

- Connecticut: IDEA Spending plans for all districts posted

-Illinois: Feds say Chicago's stimulus spending needs more oversight

-Kentucky: District hands out "wish lists" grants

- Virginia: District uses Stimulus funds for "inclusion" training

Government
Accountability Office
(GAO)
Following the Money ...

The GAO's bimonthly reviews, Following the Money, examine how Recovery Act funds -- including IDEA funds -- are being spent and whether they are achieving the act's goals.  Reviews focus on 16 states and the District of Columbia, which contain about 65 percent of the U.S. population and will receive about two-thirds of the  grants funds available through the Recovery Act. 

As of January 22, 2010, the 16 states and the District had drawn down, in total, about  $1.2 billion (17 percent) of Individuals with Disabilities Education Act (IDEA), Part B, Recovery Act funds available to them.
More...

If you are in one of the following states, be sure to check out the GAO bimonthly reviews (April, July, September and December are available so far) and meet your GAO contact:
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Greetings!

IDEA Money Watch, a project of The Advocacy Institute, is keeping track of the use of $11.3 billion in federal IDEA Part B funds being provided to local school districts as part of the American Recovery and Reinvestment Act (ARRA).

All IDEA ARRA funds must be obligated by September 30, 2011 ...just 539 days remain!


Thanks for your interest in this project!

The Advocacy Institute
The Balance Sheet
 
What Lies Ahead: Budget Dust and Double Trouble

This month's Balance Sheet blog posting reports on the President's proposed federal budget for Fiscal Year 2011. While Education gets a hefty increase overall, IDEA gets only a slight increase of just 2% - far short of what is needed to reach the funding promise of 40% of the excess cost of special education - and mere "budget dust" to members of Congress who care.

Meanwhile, with many districts across the country taking advantage of IDEA's provision allowing reduction to local spending on special education because of the IDEA funding boost in the Recovery Act, we now face double trouble with reduced local spending and shrinking school budgets. Read the Balance Sheet.
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March 26th Spending Report :: State Update

States report vast differences on
"obligated" funds

The U.S.ED's latest report on Recovery Act funds "obligated" by States goes from 1% to 52% -- some jurisdictions (HI, OK) report as much as 52% of available IDEA Recovery Act funds already obligated, while others (DC, WY) report minimal funds obligated to date.

Across the States, the average is 25%. All Recovery Act funds must be obligated by Sept. 30, 2011. That's just 539 days away!


Find out where your state stands --
our state-by-state chart is here.
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"Excess Cost" Clarification

In June 2009, the Greater California Special Education Fiscal Support Alliance sent a letter to the U.S. Dept. of Education's Office of Special Education Programs (OSEP) requesting clarification of the excess costs, supplement not supplant, and local maintenance of effort requirements in Part B of the
Individuals with Disabilities Education Act (IDEA) and its implementing regulations. 

OSEP's response is important because both regular IDEA federal funds and IDEA Recovery Act funds are subject to these provisions.

As we reported in the March Balance Sheet blog posting, a lack of understanding of "excess costs" can lead to misuse of IDEA Recovery Act funds.

Read OSEP's clarification of the "excess costs" provision of IDEA.
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Campaign for Educational Equity Symposium

The 2010 Symposium of the Campaign for Educational Equity took an in-depth look at the impact of the Recovery Act on educational equity and on educational opportunity.

The Campaign has released its final report - STIMULATING EQUITY? A PRELIMINARY ANALYSIS OF THE IMPACT OF THE FEDERAL STIMULUS ACT ON EDUCATIONAL OPPORTUNITY- which recommends another round of ARRA funding for education...but first, close the IDEA MOE loophole! Get the full report here.
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Special Ed Directors Oppose Data Collection

In letters to members of the U.S. House and Senate, as well as to the Assistant Secretary of the Office of Special Education and Rehabilitative Services at the U.S. Dept. of Education, the National Association of State Directors of Special Education (NASDSE) has expressed opposition to the new data collection requirement recently requested by the U.S. Department of Education regarding IDEA Part B Maintenance of Effort (MOE) Reduction and Coordinated Early Intervening Services. Writing on behalf of the state directors of special education, NASDSE claims the additional data collection to be cost prohibitive. Yet in October of 2009, the Education Department issued an adjustment to administrative caps that allows states to reserve between $100,000 and $500,000 of additional IDEA funds in light of the increased ARRA data collection and reporting requirements.

This new data collection was requested by OSEP back in July 2009. At the time, we called it "OSEP's Responsible Request" and urged support. Without this additional information, there will be no way for stakeholders to know how much local spending on special education was reduced as a result of the windfall IDEA Recovery Act funds. A December 2009 GAO Recovery Act report (GAO-10-231)showed that roughly half of eligible LEAs planned to reduce local spending on special education as allowable under the IDEA.
 
If yousupport the requirement for States to submit this additional data to the U.S. Department of Education (and for ED to make the data publicly available) consider contacting your elected officials in the Houseand the Senateand expressing your support for transparency and accountability.
Be sure to send a copy of your message to your state director of special education.
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LearningPort to the Rescue

The Office of Special Education Programs (OSEP) at the U.S. Dept. of Education has launched "LearningPort" - an online library of  materials from national associations, state education departments, and technical assistance centers to support professional development. 

LearningPortbuilds on OSEP's guidance document, American Recovery and Reinvestment Act of 2009: Using ARRA Funds Provided Through Part B of the Individuals with Disabilities Education Act (IDEA) to Drive School Reform and Improvement, by providing easy access to a wealth of professional development resources.

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