Federal Stimulus Package

1
Federal Stimulus Package

• Questions and Answers
• K-20 Update on Federal Stimulus
• March 31, 2009

2
Overview

• Welcome
• State Fiscal Stabilization Funds /Race to the
  Top JoLynn Berge, Director of Budget and Fiscal
  Services
• Title I, Part A Bob Harmon, Assistant
  Superintendent of Special Program and Federal
  Accountability and Gayle Pauley, Director of
  Title I/LAP and Consolidated Program Review
• School Improvement Janell Newman, Assistant
  Superintendent of School Improvement
• and Bill Mason, Director - District and School
  Improvement Operations
• Special Education Doug Gill, Director of
  Special Education
• Title II, Part D, Education Technology Dennis
  Small, Educational Technology Director
• Child Nutrition George Sneller, Director of
  Child Nutrition Services
• Homeless/McKinney Vento Martin Mueller,
  Assistant Superintendent for Student Support

3
Information

• If you are in a listen only status for the
  presentation, please feel free to send in your
  questions to
• Nathan Olson Nathan.olson_at_K12.wa.us.

4
Federal Stimulus Funding - ARRA

• Question What is ARRA?
• Answer ARRA stands for the American Recovery
  and Reinvestment Act. It is used throughout
  these slides.

5
State Fiscal Stabilization

• Question What is the state fiscal stabilization
  money?
• Answer Congress designed the State Fiscal
  Stabilization fund (53.6 Billion nationally) to
  prevent reductions in critical education and
  other services. The Recovery Act divides that
  funding into three parts (1) 48.6 billion for
  basic stabilization funds (2) 4.35 billion for
  State incentive grants and (3) 650 million for
  local education agency innovation grants.

6
State Fiscal Stabilization

• Question How much money is Washington State
  receiving?
• Answer The preliminary estimate is 1 billion.
  Of which 81.8 is for education (819.9 Million)
  and 18.2 is for other government use (182
  Million).

7
State Fiscal Stabilization

• Question When will these moneys be available?
• Answer While we believe these moneys will be
  available within the next few weeks, we have not
  yet been told an exact date.

8
State Fiscal Stabilization

• Question How long are these funds available
  for?
• Answer Funds must be obligated within 2 years
  of receiving the grant .

9
State Fiscal Stabilization

• Question What must the Governor use these funds
  for?
• Answer
• The Governor must use 81.8 of the funds received
  to restore state support for elementary,
  secondary, and postsecondary education to the
  2008 or 2009 level (whichever is greater). If
  the Governor determines there is insufficient
  funding to meet the desired level, then the
  Governor shall allocate the funds in proportion
  to the relative shortfall.
• 18.2 shall be reserved for public safety and
  other governmental services, which may include
  assistance for elementary and secondary education
  and public institutions of higher education for
  modernization, renovation, or repair of public
  school facilities and institutions of higher
  education facilities, including modernization,
  renovation, and repairs that are consistent with
  a recognized green building rating system.

10
State Fiscal Stabilization - Basic

• Question What process must the Governors use to
  obtain these funds?
• Answer The Governor must submit an application
  to the Secretary describing how the State intends
  to use the funds, and providing baseline data,
  and assurances, including assuring actions to
  improve teacher effectiveness, develop
  longitudinal data systems, improving academic
  standards and assisting struggling schools.

11
State Fiscal Stabilization - Basic

• Question Will there be an application process
  for these funds?
• Answer We dont know, however an application
  process is likely. Our current understanding is
  that the use of these funds will have to be
  tracked, as well as the impact of these funds
  (i.e. how many jobs were created/saved). If an
  application is required, we expect this would be
  through the iGrants system.

12
State Fiscal Stabilization - Basic

• Question What may LEAs use the basic
  stabilization funds for?
• Answer Any activity authorized under ESEA,
  IDEA, the Perkins Act, or modernization,
  renovation, or repair or public school
  facilities. No funds are available for capital
  projects unless authorized by the ESEA, IDEA, the
  Perkins Act or the Adult and Family Literacy Act.
  LEAs may not engage in school modernization,
  renovation, or repair that is inconsistent with
  state law.

13
State Fiscal Stabilization - Basic

• Question Do Maintenance of Effort and
  Supplanting requirements apply?
• Answer This State Fiscal Stabilization Fund
  includes a maintenance of effort provision that
  may be waived or modified under certain
  conditions. There is no supplement not supplant
  provision applicable to fiscal stability funds.
• However, the Recovery Act states in section
  14012(d) that, with the prior approval of the
  Secretary, a state or LEA that receives funds
  used for elementary, secondary, or postsecondary
  education as non-federal funds for the purpose of
  maintenance of effort requirements under any
  other program (such as Title I-A, ESEA and IDEA).
  
• OSPI intends to apply for this waiver.

14
State Fiscal Stabilization - Basic

• Question What is the maintenance of effort
  (MOE) requirement?
• Answer The State will, in each of FY 2009,
  2010, and 2011, maintain State support for
  elementary and secondary education at least to
  the level of such support in fiscal year 2006.
  The State will, in each of FY 2009, 2010, and
  2011, maintain State support for public
  institutions of higher education (not including
  support for capital projects or for research and
  development) at least at the level of such
  support in FY 2006.

15
Race to the TopState Incentive and Innovation
Fund Grants

• Currently states have limited information about
  these two competitive grant opportunities however
  we do know
• Funds will be one-time grants to states, LEAs,
  and/or nonprofits for fiscal years 2010 and 2011
• Focus on innovative, yet sustainable projects
• Focus on job creation and retention.

16
Race to the Top State Incentive Grants

• Questions
• How will states receive these funds?
• How much is the state receiving for incentive
  grants?
• Answers
• The funds will be awarded to states following a
  competitive application process. Not every state
  is guaranteed these funds.
• 2. 4.35 billion is available nationwide it
  is unclear as to the portion WA state could
  receive 50 of the funds the state receives must
  be granted out to school districts.

17
Race to the Top State Incentive Grants

• Question
• 3. What will be the parameters of these grants?
• Answer
• 3. Focus is on innovative projects that address
  the assurances in the State application (equity
  in teacher distribution collection/use of data
  standards and assessments support to struggling
  schools).

18
Race to the Top State Incentive Grants

• Question
• 4. What is the timeline for states to apply for
  and receive these funds? How will WA proceed in
  submitting the state application?
• Answer
• 4. The Governor will be expected to issue a
  letter of intent to USED in spring 2009, with
  funds awarded to states in Fall 2009. States
  will then proceed to complete the application
  process.
• - OSPI will be developing a process for
  garnering input on proposed projects that may be
  submitted as part of our states application

19
Race to the Top Innovation Fund Grants

• Question How will these funds be awarded?
• Answer Innovation Funds will be awarded
  directly from USED to a single school district
  (LEA) and/or a partnership between a nonprofit
  and a single LEA or a consortium of schools
  following a competitive application process. 650
  million will be available nationally for
  competitive applications.

20
Race to the Top Innovation Fund Grants

• Question What can they be used for?
• Answer Focus will be targeted to projects that
  (a) expand their work and serve as models for
  best practices (b) work in partnership with the
  private sector and the philanthropic community
  and (c) identify and document best practices that
  can be shared, and taken to scale based on
  demonstrated success.

21
Race to the Top Innovation Fund Grants

• Question What can be done in advance to prepare
  for the federal application process?
• Answer The method for transmitting applications
  for Innovation Fund grant applications has not
  been announced.  
• If the federal electronic transmission system
  Grants.gov  is selected as the means for
  transmittal, applicant organizations must be
  registered and approved, prior to using this
  system.  The Grants.gov registration process is
  completed only one time, however, it can take  up
  to two weeks for an organization to be approved. 
  If your school district or non-profit
  organization has not already registered for the
  Grants.gov system, see  http//www.grants.gov/
  for more information regarding the steps for
  registration. If your school district, ESD or
  non-profit already has Grants.gov authorization,
  there is no need to re-register for the stimulus
  grant opportunities.

22
Title I, Part A Funds

• Question How much money is Washington State
  receiving for Title I, Part A?
• Answer The preliminary estimate is 135
  Million.
• Washington State received 191.5 Million in our
  regular Title I award for FY 2008-09.

23
Title I, Part A Funds

• Question How and when will the funds be
  distributed to school districts?
• Answer The US Department of Education will
  distribute funds based on two of the Title I
  formula components as defined in ARRA. Title
  funds are due to arrive in states around April
  1st. Soon thereafter, OSPI will allocate funds
  to school districts.
• Again, OSPI cannot distribute funds until we have
  authorization from the Legislature.

24
Title I, Part A Funds

• Question When can the funds be encumbered or
  spent? By when must they be obligated or used
  (will the Tydings amendment apply or a shorter
  period)?
• Answer As soon as the Title I ARRA funds are
  received by school districts, they may be
  encumbered and spent. The Tydings amendment
  will apply which allows carryover.

25
Title I, Part A Funds

• Question Will an additional iGrant or other
  application be needed to receive the stimulus
  funds?
• Answer A separate application will be used in
  iGrants.

26
Title I, Part A Funds

• Question Will existing Maintenance of Effort
  (MOE) and supplanting rules apply?
• Answer Yes Maintenance of Effort is 90 for
  Title I.
• We are exploring whether or not the state can
  apply for a statewide waiver.

27
Title I, Part A Funds

• Question Will all current Title I, Part A
  requirements and set-asides (i.e. transportation
  choice, SES services) be required for the
  stimulus funds or will they be treated
  separately?
• Answer Based on current information, we expect
  all existing Title I requirements will remain in
  effect for these stimulus funds. Waivers may be
  a possibility, based on guidance from the
  Department.

28
School Improvement

• Question How much of the Title I funding from
  the federal stimulus package will be available
  for School Improvement in Washington State?
• Answer OSPI anticipates an increase of 44.5
  million from the federal stimulus package over
  the next biennium (2009-2011), or 22.25 million
  for 2009-2010 and 22.25 million for 2010-2011,
  to support school improvement.

29
School Improvement

• Question How will additional funds provided
  through the stimulus package be distributed to
  LEAs?
• Answer OSPI will identify those districts who
  are in NCLB Improvement status (have not made
  adequate yearly progress for two consecutive
  years) along with criteria to help determine
  districts with greatest need and highest
  commitment. A total of 95 of these funds will be
  allocated for services at the district level the
  remaining 5 will be used to support state-level
  administration of the grants. Funds will be
  allocated consistent with provisions of the
  federally mandated NCLB Act and other federal
  guidelines established for this stimulus package.

30
School Improvement

• Question What criteria will be used to award
  grants supported by the stimulus package to LEAs?
  
• Answer OSPI anticipates federal guidelines for
  allocation of stimulus package funds will be
  similar to guidelines for use of 1003g funds in
  the 2007-2009 biennium. OSPI will submit a
  proposal regarding use of stimulus package funds
  to USED. Once approved, OSPI will utilize
  guidelines consistent with the proposal to award
  grants to LEAs.

31
School Improvement

• Question How will LEAs be notified of the
  opportunity to apply for grants supported through
  the stimulus package? What is the timeline for
  LEAs to apply for these grants?
• Answer Once the states proposal for using
  stimulus package funds is approved by USED, OSPI
  will use the iGrants system to notify
  superintendents and district fiscal managers
  regarding the application process for these
  grants. Given the anticipated start date of
  Fall, 2009 for stimulus package grants awarded
  for the 2009-2010 school year, we foresee a
  relatively short timeline for the application
  process.

32
School Improvement

• Question What accountability measures have been
  established by USED or OSPI for use of stimulus
  package funds?
• Answer OSPI is working with USED to understand
  accountability requirements, including specific
  expectations regarding increasing employment in
  Washington State, associated with the use of
  stimulus package funds.

33
Special Education

• Question How much of the ARRA is available for
  Special Education?
• Answer The breakdown for Washington state is
  221,357,461 in IDEA Part B funds for students
  ages
• 3 21 and 8,475,569 for students ages 3-5 for
  the biennia.

34
Special Education

• Question When will the funding be available?
• Answer Our understanding is that the first half
  of the IDEA stimulus package funding for
  Washington state (approximately 110M) is to be
  available to states no later than April 30, 2009.
  The second half of the IDEA stimulus package
  funding (approximately another 110M) will be
  available October 31, 2009. However, it is
  important to note that the Legislature will
  determine the exact date funds will be available
  to districts.

35
Special Education

• Question What is the intention of the funding?
• Answer The intention of the funding is to help
  districts mitigate the affect of the recent
  reduction in state and local revenues and improve
  student achievement. Official guidance is
  pending, but is expected within the next week.

36
Special Education

• Question How will these funds be allocated?
• Answer The state will be using the current
  allocation model and formulas to allocate 100 of
  the stimulus formula funding to school districts.
  

37
Special Education

• Question What is the estimated funding per
  pupil?
• Answer Although IDEA funding is not provided on
  a per pupil basis, our best estimate is
  approximately 1800 per student and 900 increase
  for 3-5 year olds.

38
Special Education

• Question How does this affect MOE?
• Answer Current MOE rules apply including all
  MOE exceptions currently identified in federal
  and state regulations.

39
Special Education

• Question Is there an allowable exception for
  the amount of the increase in IDEA funding?
• Answer Current regulations call for any fiscal
  year in which the federal allocation received
  exceeds the federal allocation received in the
  previous year, a district may reduce the level of
  state and local expenditures by not more than 50
  of the increase.

40
Education Technology

• Question How much is Washington State
  receiving?
• Answer The preliminary estimate is 8.7
  million over two years.

41
Education Technology

• Question How will these funds be distributed?
• Answer Based on current information from the
  U.S. Dept. of Education, these funds will be
  distributed like other Education Technology
  funds
• 50 of the funds distributed via formula
• 50 of the funds distributed via competition

42
Education Technology

• Question What requirements will govern
  allocation of the formula flow-through funds?
• Answer The same as current formula funds at
  least 25 percent of EETT funds must be used on
  professional development that supports technology
  integration within teaching and learning. The
  remainder of these funds must be spent to improve
  the technology literacy of students, integrate
  technology into curriculum or improve student
  achievement.

43
Education Technology

• Question Are all districts eligible for formula
  flow-through funds?
• Answer Nearly all. A few very small districts
  do not report Title I student counts and, as a
  result, are not eligible for these funds.

44
Educational Technology

• Question How will OSPI allocate the competitive
  grant funds?
• Answer We will fund additional peer coaching
  applicants in the grant competition in process
  (applications are due today). We will also
  introduce a second complementary professional
  development program designed for educators who
  want to expand basic technology integration
  skills and learn the dynamics of student-centered
  instruction. We expect the application for this
  grant program (TL21) to be available later this
  spring.

45
Education Technology

• Question What districts are eligible to apply
  for Title II D competitive funds?
• Answer The list of 145 eligible districts is
  online at http//www.k12.wa.us/EdTech/eett09-eligi
  ble.aspx

46
Education Technology

• Question Why are some districts not eligible
  for
• Title II D competitive funds?
• Answer To be eligible, school districts must
  meet these strict federal requirements
• Highest percentage of children from families with
  incomes below the poverty line, AND
• Serve one or more schools identified for
  improvement, OR
• Did not meet Annual Yearly Progress, OR
• Have a substantial need for assistance with the
  purchase and use of technology.

47
Child Nutrition Services

• Question Is there any funding for school
  nutrition program equipment? How much?
• Answer Yes. Washington state has received
  1,588,047 for equipment assistance grants. Any
  local education agency (LEA) sponsoring a
  national school lunch program (NSLP) may apply.

48
Child Nutrition Services

• Question How will the funding be distributed?
• Answer Funds will be awarded through a
  competitive grant process. Equipment requests
  may include new equipment, renovation of
  equipment, or replacement of equipment. Priority
  will be given to schools having enrollment of at
  least 50 free and reduced price eligible
  students.
• Construction costs are not covered under this
  grant.

49
Child Nutrition Services

• Question When will districts expect to receive
  the funds?
• Answer The grant application will be available
  through iGrants, hopefully on April 1st. The
  grant application will be due back by May 1st.
  The grants will be awarded on or around June 8th.
  The grant funds must be fully expended by
  September 30th.

50
Child Nutrition Services

• Question What is the definition of equipment?
• Answer USDA regulations at 7 CFR 3016.3 and
  Office of Management and Budget Circular A-87
  define equipment for the purpose of NSLP
  equipment assistance grants as articles of
  nonexpendable, tangible personal property with a
  useful life of more than one year and a per unit
  acquisition cost of at least 5,000.

51
Child Nutrition Services

• Question May a LEA apply for an amount less
  than the 5,000 as defined by Federal/State
  government?
• Answer Local agencies that use such lesser
  amounts (known as capitalization thresholds) to
  define equipment may still apply. Documentation
  of the local policy will be needed as part of
  the grant application.

52
Child Nutrition Services

• Question May a LEA apply for funds for more
  than one school?
• Answer LEAs have the option of applying for a
  single school or for multiple schools. Each
  school will have a separate request. Equipment
  requests for central kitchens will also be
  considered if the combined enrollment of all
  schools served by the central kitchen is 50 or
  more free and reduced eligible.

53
Education for Homeless Children and Youth

• McKinney-Vento
• 70 M in ARRA funds (nationally.)
• Washington will know the state-level allocation
  in
• mid-April.
• LEA distribution will be via competitive grants
  OR on a per-pupil allocation based on 2007-2008
  homeless student data reports. (State-level
  decision, yet to be determined.)

54
Education for Homeless Children and Youth

• McKinney-Vento
• Funds may be used for the same authorized
  activities as current M-V education funds, with
  an emphasis on job creation/retention. (The 16
  authorized activities are found in the text of
  the McKinney-Vento Act.)
• Accountability measures have not yet been
  determined by ED.
• ARRA funds are to be used by September 2011.

55
Education for Homeless Children and Youth

• There has been some confusion regarding the
  difference between ARRA Homelessness Prevention
  funds and ARRA Homeless Education funds
• Homelessness Prevention funds will go to
  communities for housing, shelter assistance and
  other homelessness prevention activities. (Around
  25M administered through CTED.)
• McKinney-Vento Homeless Education funds will go
  to local districts to provide educational support
  for homeless children and youth in schools.
  (Administered through OSPI.)
• Questions? Contact Melinda Dyer, OSPI Program
  Supervisor at [phone] or
  melinda.dyer_at_k12.wa.us

56

• QUESTIONS??