American Recovery and Reinvestment Act ARRA

1
American Recovery and Reinvestment Act (ARRA)
Other Updates Title I Directors
MeetingSeptember 30, 2009Melina N.
Wrightmewright_at_isbe.net
Not for quotation or attribution
2

• Overview
• Title I, Part A Use of Funds
• Allocations, Set-asides, Carryovers Waivers
• Reporting Audits (A133)
• Competitive Grants
• Other Updates
• Questions, Questions More Questions
• (and maybe some answers)

3
OVERVIEW
4
Historic, one-time investment to stimulate
economy improve education
787 Billion TOTAL
www.recovery.gov
5
ARRA Guiding Principles

• Spend funds quickly to save and create jobs
• Ensure transparency, reporting accountability
• Invest one-time ARRA funds thoughtfully to
  minimize the funding cliff
• Advance effective education reforms

6
Four Education Reform Areas

• Increase teacher effectiveness and address
  inequities in the distribution of Highly
  Qualified Teachers (HQT)
• Establish and use pre-K-16 data systems to track
  progress and foster continuous improvement
• Make progress toward rigorous standards and
  high-quality assessments
• Support targeted, intensive support and effective
  interventions to turn around schools identified
  for corrective action and restructuring

7
Sources of ARRA Education Funds

• Source ILs Award
• Formula/Existing Grants
  971 million
• State Fiscal Stabilization Funds (SFSF) 2
  billion
• Competitive Grants
  TBD
• (Incentive Grants, Innovation Grants, Statewide
  Data Systems)
• Distributed at discretion of Secretary of
  Education

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1. Formula Funds

• Source ILs Award
• Title I, Part A (Education of the Disadvantaged)
  420 million
• IDEA, Part B (611 Children with
  Disabilities) 506 million
• IDEA, Part B (619Preschool) 18.3 million
• McKinney-Vento (Homeless Children) 2.5 million
  
• Title I, 1003(g) Grants (School Improvement)
  124 million
• Title II, Part D (Education Technology) 26.5
  million

9
2. Stabilization Funds

• The Governor must apply for Stabilization Funds
  which is to be distributed in two pots
• The U.S. Department of Education (ED) approved
  Illinois phase one application on April 20th
• All of the State Fiscal Stabilization Funds will
  be used to support General State Aid purposes in
  FY09 and FY10
• Illinois will receive 1.4 billion in this first
  phase of the release of funds
• Illinois must apply again for the 655 million
  available to the state in the second phase of
  funding

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3. Competitive Grants

• Race to the Top fund
• Up to 4.35 billion in grants to states that have
  made significant progress in meeting the
  assurances and other criteria that the U.S.
  Secretary of Education deems appropriate.
• Innovation fund
• Up to 650 million for grants to eligible
  entities meaning an LEA or a partnership
  between a nonprofit organization and one or more
  LEAs or a consortium of schools.
• Awards for eligible entities to expand
  successful practices and identify best practices
  that can be shared and taken to scale and work in
  partnership with the private sector and the
  philanthropic community.

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11
Select ARRA Activities

• February 17, 2009- ARRA signed into law
• April 1, 2009- Secretary Duncan announces
  availability of 44 B in ARRA funds including
  50 of Title 1 and IDEA funding and 66 of SFSF
  funds.
• April 2009 and July 2009- Initial ARRA Title I
  and IDEA Guidance available
• July 29, 2009 - Notices of proposed priorities
  for Race to the Top and State Fiscal
  Stabilization Fund Phase Two published in the
  Federal Register.
• September 2, 2009- Additional Use of Funds
  Guidance available at www.ed.gov

11
12
Overview Resources

• Recovery Act State Fact Sheets
  www.ed.gov/policy/gen/leg/recovery/state-fact-shee
  ts/index.html
• Overview of the Recovery Act www.ed.gov/policy/ge
  n/leg/recovery/implement.html
• ISBE ARRA Webpage
• www.isbe.net/arra/default.htm
• Illinois ARRA Webpage
• www.illinois.gov/recovery/

13
ARRA-General State Aid (GSA)
Paid with State Fiscal Stabilization Fund
(SFSF) ARRA-GSA Phase 1 FY2009 applied to
the second April payment, two May payments, and
two June payments ARRA-GSA Phase 2 waiting
on application from ED to apply, once applied and
approved, SFSF may be applied to additional GSA
payments
14
SFSF GSA Resources

• Federal Requirements Overview
• http//www.isbe.net/funding/pdf/sfsf_fed_req_over
  view.pdf
• EDs SFSF Phase 1 Information
• http//www.ed.gov/programs/statestabilization/app
  licant.html
• ED SFSF Phase 1 Fact Sheet
• http//www.ed.gov/policy/gen/leg/recovery/factshe
  et/stabilization-fund.html
• EDs SFSF Phase 2 Federal Register Notice
• http//www.ed.gov/legislation/FedRegister/proprul
  e/2009-3/072909e.html
• EDs SFSF Phase 2 Fact Sheet
• http//www.ed.gov/programs/statestabilization/fac
  tsheet.html
• EDs approval of Illinois SFSF Application
• http//www.isbe.net/news/2009/april20.pdf
• Illinois Initial Application for Stabilization
  Funds http//www.ed.gov/programs/statestabilizatio
  n/stateapps/il.pdf
• Districts Application Assurances
• http//www.isbe.net/funding/pdf/sfsf_gsa_assuranc
  es.pdf

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SFSF Phase 2

• Proposed program requirements provide data
  against a set of indicators to measure progress
  against four reform areas.
• Where data is unavailable, States must submit a
  plan by which data will be transparent to public
  by no later than September 30, 2011
• The metrics include 3 descriptors and 30
  indicators
• SFSF Phase 2 Notice
• http//www.ed.gov/legislation/FedRegister/proprule
  /2009-3/072909e.html

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ARRA TITLE I, PART AUse of Funds
17
ARRA Title I, Part A

• 420 million on top of normal FY09 allocation
• All Title I Rules Apply to ARRA Title I Funds
• A district will receive their total allocation
  regardless of which year (FY09, FY10, FY11) they
  apply, but, all ARRA funds must be obligated by
  Sept. 2011
• LEA eligibility based on federal poverty data (
  gt 5 poverty) Targeted and EFIG allocation.
• ARRA funds MUST be budgeted and tracked
  separately therefore there are 2 applications.

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Use of Funds - LEA questions to consider

• The answer to these 5 questions should be YES
  when considering how to best spend ARRA funds
• Will the proposed use of funds drive improved
  results for students?
• Will the proposed use of funds increase
  educators long-term capacity to improve results
  for students?
• Will the proposed use of funds advance state,
  district, or school improvement plans and the
  reform goals encompassed in ARRA?
• Will the proposed use of funds avoid recurring
  costs that states, school systems, and schools
  are unprepared to assume when this funding ends?
• Will the proposed use of funds include approaches
  to measure and track implementation and results
  and create feedback loops to modify or
  discontinue strategies based on evidence?

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Allowable Costs Supplement vs. Supplant

• 1. Is the activity allowable? Review statute,
  guidance, cost principles
• 2. Does it violate non-supplanting provisions?
• Review three scenarios where supplanting is
  presumed, see Revised Non-Regulatory Guidance
  Title I Fiscal Issues, Feb. 2008
  (http//www.ed.gov/programs/titleiparta/fiscalguid
  .pdf).
• When federal funds are used to provide services
  that the SEA/LEA is required to make available
  under other federal, state or local laws
• When federal funds are used to provide services
  that the LEA/SEA provided with State or local
  funds in the prior year or
• When federal funds are used to provide the same
  services to Title I participating students that
  are being received by nonparticipating students.
• 3. Is there documentation to rebut the
  presumption of supplanting?

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Examples of ARRA Title I fund uses...

• operate a new schoolwide program
• improve support and resources for ELLs
• support district-wide improvement strategies
• prepare low-achieving students to access college
  and career ready courses
• support teachers and school leaders in
  developing, implementing and analyzing formative
  and interim assessments to inform instruction
• attract and reward effective teachers and leaders
  to Title I schools
• plan and support rigorous inventions in lowest
  achieving Title I schools, such as those proposed
  in School Improvement Grant
• support PreK, extended day and community school
  programs

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Use of Funds Resources

• Title I ARRA Fact Sheet (Apr 1, 2009)
• www.ed.gov/policy/gen/leg/recovery/factsheet/titl
  e-i.html
• Title I ARRA Guidance (April 1, 2009)
• www.ed.gov/policy/gen/leg/recovery/guidance/title
  -i.doc
• Title I ARRA Use of Funds Guidance (Sept. 2,
  2009)
• www.ed.gov/policy/gen/leg/recovery/guidance/title
  -i.pdf

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Allocations, Set-asides, Carryovers, Waivers
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LEA Allocations Disbursements

• Preliminary FY10 Allocations - Title I ARRA
• http//www.isbe.net/funding/pdf/title_I_arra_preli
  m_fy10.pdf
• Preliminary FY10 Allocations - Title I Regular
• http//www.isbe.net/funding/pdf/title_I_proj_fy10.
  pdf
• FY10 LEA ARRA Allocation Summary
• http//www.isbe.net/arra/arra_summary_allocations.
  pdf
• Illinois ARRA Funding Allocations and
  Disbursements
• http//www.isbe.net/arra/html/funding_alloc.htm

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ARRA Title I Set Asides

• A district may reserve funds for certain
  reasonable and necessary services before
  allocating funds to schools.
• Funds set aside are deducted from the
  combined Regular Title I Funds and ARRA Title I
  Funds allocation available for the LEAs use.
• Because the reservation of funds by an LEA
  will reduce the funds available for distribution
  to participating public schools as well as
  private schools, consultation with teachers,
  principals, parents, and private school officials
  must include discussion on necessary
  reservations.
• Timely and meaningful consultation with all
  applicable parties is required on use of funds.

25
ARRA Title I Set Asides Cont

• LEAs must calculate the amount of funds to be set
  aside, if any, for the purposes noted below
• Private School Non-instructional Costs
• General Administration of program
• Homeless Children
• Limited English Proficient (LEP)
• Neglected/Delinquent Children
• Parent Involvement (Districtwide)
• Preschool (Districtwide)
• Professional Development (Districtwide)
• Supplemental Educational Services and
  Transportation for School Choice

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Set-Aside Waivers

• An LEA may request the following, through the
  application
• Exclude Title I, Part A ARRA Funds in Determining
  an LEAs 20 Obligation for Choice-Related
  Transportation and SES,
• Exclude Title I, Part A ARRA Funds in Determining
  the 10 Professional Development Set-Aside for an
  LEA in Improvement,
• Exclude Title I, Part A ARRA Funds in Determining
  the 10 Professional Development Set-Aside for an
  LEA in Improvement, and
• Exclude Title I, Part A ARRA Funds in Determining
  the Per-Pupil Amount for SES

27
Set-Aside Waivers

• New pages are being developed on the ARRA
  application where districts will indicate if they
  are
• Planning to apply for each waiver
• The amount of funds to be excluded from the
  calculation (as applicable)
• The identified need the freed-up funds will be
  used to address
• The data used to identify the aforementioned need
• The strategies that the freed-up funds will be
  used for to address the need
• The evidence basis for those strategies

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More about PD Set-Asides
District Professional Development Set aside When
a district is identified for improvement, it must
reserve not less than 10 percent of its Title I
Part A funds for high-quality professional
development for instructional staff that is
specifically designed to improve classroom
teaching. The law requires districts to use the
set aside funds to address those areas that led
to the program improvement identification.
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More about PD Set-Asides
School Professional Development Set aside A
school identified for program improvement must
spend not less than 10 percent of its allocation
of Title I Part A funds, for the purpose of
providing high-quality professional development
to the schools teachers, principal and, as
appropriate, other instructional staff. These
funds must be spent only at the individual school
identified for improvement.
30
More about Set-Asides
Homeless An LEA must reserve such funds as are
necessary to provide services comparable to those
provided to children participating in Title I,
Part A programs for homeless children who do not
attend participating schools. section
1113(c)(3)(A) Services may include providing
educationally related support services to
children in shelters and other locations where
children may live. Title I, Part A funds may not
be used to provide services that are otherwise
required by law to be made available, like
transportation for homeless students to and from
their school of origin, but may be used to
coordinate or supplement such services.
31
Carryover

• ARRA funds awarded as part of the FY10 grant,
  with carryover provisions into FY11.
• Carryover limit of 15 applies to both ARRA Title
  I funds and Regular Title I funds
• Thus, 85 ARRA Title I Funds must be expended/
  obligated by Sept 30, 2010, with no more than 15
  carryover to FY11 (school year 2010-11).

32
Carryover Waiver

• Section 1127(a) of the ESEA prohibits an LEA from
  carrying over to the next fiscal year more than
  15 percent of its Title I, Part A, Subpart 2
  allocation.
• Section 1127(b) allows the SEA to grant a waiver
  to that prohibition once every three years
• ISBE has requested a waiver from ED that will
  allow the SEA to grant an additional waiver to
  LEAs.

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Allocation Set-Aside Resources

• EDs Waiver Guidance www.ed.gov/programs/titleipa
  rta/title-i-waiver.doc
• ISBEs Waiver Website www.isbe.net/nclb/htmls/wai
  vers.htm
• Existing ISBE Carryover Waiver Website
  www.isbe.net/funding/pdf/carryover_waiver.pdf
• ISBE set-asides Bulletin
• www.isbe.state.il.us/e-bulletins/pdf/03-09.pdf

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Reporting Audits
35
ARRA Reporting Requirements

• Any activity paid for with ARRA funds must be
  tracked separately with its own budget code.
• States and LEAs to produce quarterly financial
  and program outcome reports.
• Detailed information describing how districts
  will use obligated and unobligated funds.
• Emphasis on clean, reliable data that will be
  used for decision making.
• Subcontracts and sub-grantees to comply with the
  Federal Funding Accountability and Transparency
  Act.

36
Reporting

• ARRA data will be reported along with
  expenditures through the existing Electronic
  Expenditure Reporting system in IWAS.
• LEAs must report ARRA expenditures cumulatively
  (i.e. year to date) for each fiscal year ARRA
  funds are received.
• ISBE will combine ARRA information across fiscal
  years for each LEA.

37
Reporting Timelines

• ISBE must submit ARRA reports 10 calendar days
  from the end of each quarter reporting period
  (i.e. Sept 30, Dec 31, Mar 31 June 30).
• Local education agency (LEA) ARRA reports are due
  to ISBE 5 calendar days from the end of each
  quarter reporting period (e.g. FY 2010 Sept 30
  report due on October 5).
• ARRA funds will be frozen if required reports are
  not received

38
Jobs Created Retained

• A job created is a new position created and
  filled or an existing unfilled position that is
  filled as a result of ARRA funding.
• A job retained is an existing position that would
  not have been continued to be filled were it not
  for ARRA funding.
• A job cannot be counted as both created and
  retained.
• Jobs do not need to be directly paid for by ARRA
  funds to be reported. For example, ARRA funds
  could be used to pay a bill which in turn freed
  up funds that could be used to create, fill or
  retain a position.
• Only direct jobs are reported a direct job is a
  a position that is funded by LEA and is being
  filled as a result of ARRA funding.

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ARRA Funds Audit Requirements

• A-133 audits are required for entities with
  federal expenditures of 500,000 or more from all
  sources (direct and indirect)
• ARRA funds are federal and must be included in
  determining if entity meets 500,000 threshold
• Many districts/joint agreements previously exempt
  may now be required to have an A-133 audit
• CPA firms that perform A-133 audits must meet
  additional requirements
• A-133 audits submitted using a non qualified CPA
  may be rejected by ISBE

40
Reporting Audits Resources

• EDs Jobs Creation and Retained Guidance
• www.ed.gov/policy/gen/leg/recovery/guidance-on-job
  s-creation.doc
• ISBEs reporting Webinar
• www.state.il.us/streaming/isbe/ISBE-ARRA-Reportin
  g-Requirements.asx
• ISBEs ARRA Jobs Category Title Descriptions
• www.isbe.net/arra/pdf/arra_jobs.pdf
• ISBEs ARRA Reporting Instructions
• www.isbe.net/arra/pdf/arra_reporting_inst.pdf
• A-133 audits
• www.isbe.net/funding/html/a133.htm
  www.isbe.net/funding/pdf/audit_qualifications.pdf
  www.isbe.net/funding/pdf/FRISfederalconfweb.pdf

41
Competitive Grants1003(g), RTTT, Longitudinal
Data Systems Innovative Fund
42
Current 1003(g) School Improvement

• Existing 1003(g) funds are provided to LEAs to
  provide intensive assistance to schools in
  federal status under 1116 of NCLB
• Priority goes to eligible LEAs that
• Serve the lowest-achieving schools
• Demonstrate the greatest need for such funds
• Demonstrate the strongest commitment to ensuring
  that such funds are used to enable the
  lowest-achieving schools to meet the progress
  goals in school improvement plans
• All states have to develop a plan and apply to ED
  in order to access these funds. They are then
  distributed via competitive grants to LEAs that
  meet the above requirements.
• We are currently in year 2 of our initial grant
  award.
• 16 million was available under the existing
  grant for FY10

43
ARRA 1003(g) School Improvement

• An additional 117 million is available to the
  state due to ARRA
• EDs proposed requirements have been published
  for comment
• Once finalized, ISBE will have to develop plan
  and apply to ED
• Once approved by ED, then ISBE can proceed with
  competitive process to provide grants to LEAs
  that meet the requirements

43
44
1003(g) Proposed Changes

• SEA to defines the bottom 5 of schools in
  federal status (improvement, corrective action
  restructuring) based on
• the absolute performance of schools on State
  assessments in reading/language arts and
  mathematics and
• whether schools have made progress on those
  assessments (i.e., whether gains on the
  assessment are equal to or greater than the
  average gains of schools in the State on that
  assessment, in the all students category)

45
1003(g) Proposed Changes

• Establish three tiers of schools that will be
  eligible to receive SIG funds.
• Tier I The states bottom 5 of Title I schools
  in improvement, corrective action, or
  restructuring (or the states bottom 5
  lowest-achieving Title I schools whichever is
  greater)
• Tier II The states Title I eligible (but not
  necessarily participating) secondary schools
  with equivalently poor performance as Tier I
  schools.
• Tier III Any state Title I school in
  improvement, corrective action, or
  restructuring.

46
1003(g) Proposed Changes

• LEAs receiving funds must agree to implement one
  of the following rigorous interventions in the
  bottom 5 of schools that the LEA commits to
  serve.
• Turnaround Model
• Restart Model
• School Closure
• Transformation Model
• Note ED proposals states that an LEA with nine
  or more Tier I and Tier II schools would not be
  able to implement the same intervention in more
  than 50 percent of those schools.

47
Race to the Top (RTTT)

• Up to 4.35 billion that the Secretary shall, in
  FY 2010, make grants to states that have made
  significant progress in meeting the assurances
  identified in the State application
• Achieving equity in teacher distribution
• Improving collection and use of data
• Standards and assessments
• Supporting struggling schools, corrective action
  and restructuring
• And other criteria the Sec. determines
  appropriate
• State must use at least 50 of the grant to
  provide local educational agencies with sub
  grants based on the relative share Title I
  funding.

47
48
Race to the Top

• Emphasis on STEM (Science, Technology,
  Engineering and Math)
• Expansion of Statewide Longitudinal Data Systems
• P-20 Alignment
• School-level Conditions for Reform and Innovation
• Two Phases
• Phase I Open in late 2009 more likely Feb.
  2010
• Phase II Open in Spring 2010 more likely
  summer 2010

49
Innovation Fund

• Up to 650 million for academic achievement
  awards for eligible entities that meet certain
  requirements.
• Awards for eligible entities to
• allow them to expand successful practices
• allow the entities to work in partnership with
  the private sector and the philanthropic
  community and
• identify best practices that can be shared and
  taken to scale.
• ED will be publishing a notice of proposed
  priorities, requirements, definitions and
  selection criteria in the Federal Register for
  public comment.

49
50
Statewide Longitudinal Data Systems

• Program Requirements data systems must have the
  capacity to link preschool, K-12, and
  postsecondary education as well as workforce data
  and must include the following 12 elements
  prescribed by the America COMPETES Act

• Data on Student Transition and Success in College
• Data on Preparation for Success in Postsecondary
  Education
• An Audit System to Ensure Data Quality
• Ability to Share Data from Preschool Through
  College
• Unique Student Identifiers

• 1. Student Enrollment Information
• 2. Information on Graduates, Transfers, Dropouts
• 3. State Assessment Scores
• 4. Information on Students Not Tested
• 5. College-Readiness Test Scores
• A Teacher Identifier System
• Student Transcript Information

51
Competitive Grant Resources

• Race to the Top Notice
• www.ed.gov/legislation/FedRegister/proprule/2009-3
  /072909d.html
• State Data Systems Notice
• www.ed.gov/legislation/FedRegister/announcements/2
  009-3/072909c.html
• School Improvement 1003(g) Notice
• www.ed.gov/legislation/FedRegister/other/2009-3/08
  2609d.html
• EDs ARRA Program information
• www.ed.gov/policy/gen/leg/recovery/programs.html

52
ARRA Webinars

• ARRA Title I Application (July 27, 2009)
• Webinar Video http//www.state.il.us/streaming/is
  be/ARRA-Title-I-727.asx
• Questions Answers document
  http//www.state.il.us/streaming/isbe/QA.asx
• FY 2010 NCLB Consolidated Application and ARRA
  Updates (June 18, 2009)
• Webinar Video http//www.state.il.us/video/stream
  ing/isbe/Consolidated-Application-and-Updates-to-A
  RRA-I20and-IID.ASX
• Power Point Presentation   http//www.isbe.net/ar
  ra/egms_workshop.ppt
• Questions Answers document  http//www.isbe.ne
  t/arra/pdf/nclb_6-18_webinar_qa.pdf
• Illinois Program Accounting Manual and A-133
  Single Audits (May 15, 2009)
• Webinar Video (June 10, 2009) http//www.state.il
  .us/video/streaming/isbe/IPA-and-A-133-Audit.asx
• Webinar Video (May 15, 2009) http//www.state.il.
  us/video/streaming/isbe/Consolidated-Application-a
  nd-Updates-to-ARRA-I20and-IID.ASX
• Power Point Presentation   http//www.isbe.net/ar
  ra/pdf/IPAM_A-133_Webinar.ppt
• ARRA Webinar (May 1, 2009)
• Webinar Video http//www.state.il.us/video/stream
  ing/isbe/isbe-arra-050109.ASX
• Power Point Presentation   http//www.isbe.net/ar
  ra/pdf/arra_webinar_050109.pdf
• Questions Answers document  http//www.isbe.ne
  t/arra/pdf/arra_may1_webinar_qa.pdf

53
Other Updates

• Common Standards
• ESEA Reauthorization
• Annual Revisions to Accountability Workbook
  (February)
• Graduation rates and goals for peer review
  (January)
• Title I Monitoring by ED (April)

54
Common Standards

• State-led Common Standards and Assessment
• 350 million set aside for separate competition
• 46 states and 3 territories formed consortium
• High School Exit Standards public release
  mid-August
• K-12 Standards by end of December 2009
• Eligibility for Race to the Top contingent on
  adopting standards and assessments

55
ESEA Reauthorization

• Our task is to unite education stakeholders
  behind a national school reform movement. Sec.
  Duncan
• The four pillars of the Race to the Top Fund --
  high standards and better assessments, improving
  teacher quality, a use of data for improving
  student achievement and turning around struggling
  schools -- are a key part, but not a sum total of
  EDs reauthorization framework.

56
Questions