American Reinvestment _ Recovery

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					American Reinvestment & Recovery

   Ewing Marion Kauffman Foundation
             April 22, 2009
   Dane Linn, National Governors Association Center for
                       Best Practices
   Michael Griffith, Education Commission of the States

             ARRA Overview
• States will receive over $250 billion
• States must obligate the funds quickly
• Fiscal outlook remains bleak over the next
  three years
• Transparency and accountability are the
• Education funds surpass the total
  appropriation for the U.S. Department of
                  Goals of ARRA
• Fill State and Local Economic Shortfalls & Avoid Cuts
   – 46 states are experiencing budget shortfalls
   – Education remains #1 expenditure in states

• Advance a Reform Agenda/Assurances
   – Establish longitudinal data system (Pre-K to higher ed.)
   – Provide intensive & effective interventions into low-
     performing schools
   – Ensure the equitable distribution of qualified teachers &
     teacher effectiveness
   – Improve state standards & assessments (College & career-

            Early Childhood Education
                       Dedicated Funds
• CCDBG ($2 billion)
   – Serve more families by raising income eligibility limits on subsidies
   – Hire specialists to promote high-quality care for infants and toddlers

• Head Start/Early Head Start ($2.1 billion):
   – Increase staff compensation or benefits
   – Cover participant transportation costs

• IDEA, Part C ($500 million):
   – Expand the availability and range of inclusive placement options for
     children 0-5 with disabilities by developing the capacity of public and
     private programs to serve these children

                      Title 1
• Part A ($10 Billion)
  – $5 billion (50%) distributed by Mid-April
  – $5 billion distributed between July & September

• School Improvement Grants ($3 billion)
  – Funds will be distributed in Fall ‘09 with approved
• Impact Aid ($100 million)
  – 40% by formula; 60% by competitive grants

Individuals with Disabilities Education
• Part B ($11.3 billion)
   – 50% distributed by mid-April
   – 50% distributed between July and September

• Part B/Preschool Grants ($400 million)
   – 50% distributed by mid-April
   – 50% distributed between July and September

• Part C ($500 million)
   – 50% distributed by mid-April
   – 50% distributed at a later date

   Increases in Current Programs
• Education Technology State Grants ($650
• Vocational Rehabilitation State Grants ($540
• Independent Living Services ($140 million)
• Education for Homeless Youth ($70 million)

       State Stabilization Funds
Purpose: Provide state fiscal relief to prevent
          cuts to key services.
• Funds to local schools and higher education
  institutions distributed through existing state
  and federal formulas
• Funds to states for public safety and other
  government services, which may include
  education and education modernization,
  repair and renovation

  State Stabilization Funds (cont.)
• Grants to Governors for Education ($39.8 billion)
   – States must fund K-12 and higher education at or
     above FY 2005-06 funding levels to be eligible
   – Must first use funds for K-12 education to restore, in
     FY 09, FY 10, and FY 11, the level of state support
     through the state funding formulae to the greater of
     FY 08 or FY 09
   – Funds must be distributed by the state’s primary
     funding formulae from the state to school districts
   – Any funding above FY 08 or FY 09 levels (whichever is
     higher) must be distributed based on Title 1

State Fiscal Stabilization Fund (cont.)
• Grants to Governors for “Other Governmental
  Services” ($8.8 billion)
• Support public safety and other government
  services, which may include assistance for
  elementary and secondary education,
  postsecondary education, and school
  modernization, renovation and repair

 State Fiscal Stabilization Fund (cont.)
• States are currently submitting applications to
  U.S. Department of Education (Approved: CA, IL,
• 67% of funds will be available to states
  approximately two weeks after the application
  has been approved
• 33% will be available conditioned on states
  providing “additional information”
• Funds will be available between July 1, 2009 and
  September 30, 2009
State Fiscal Stabilization Fund (cont.)
          Payment Schedule
• State Grants (to Governors)
  – First payment: End of April
  – Second payment: Fall 2009

• Grants for Other Services
  – First payment: End of April
  – Second payment: Fall 2009

 State Fiscal Stabilization Fund (cont.)
        Funding Requirements
• Governor must submit an application to U.S.
  Secretary of Education containing the following
  – Assurances that they are advancing the four education
    reforms & complying with maintenance of effort
  – Baseline data on the assurances
  – Description of how state will use the funds
  – Report student expenditures on a school-by-school
    basis for districts receiving Title 1, Part A funds

  State Stabilization Funds (cont.)
• Second round of funds—states must provide:
  – Information on their ability to meet reporting
    requirements under ARRA, Title 1 and IDEA
  – Outline of the state’s plans and progress on the
  – Articulate how the state and district will use funds
    to improve teaching and learning
• All funds must be obligated by September 20,
                State Assurances
• Teacher Effectiveness-Address inequities between the
  distribution of teachers in high-and low-poverty schools
• P-16 Data-Establish a longitudinal data system
• Standards & Assessments-Improve state academic standards;
  Enhance assessments to comply with ESEA provisions related
  to inclusion of students with disabilities, limited English
  proficient students
• Low-performing Schools-Intensive support and effective
  interventions for lowest performing schools
**Maintenance of Effort-Maintain support on K-12 education at
  least at the level of FY 2009, 2010, 2011; maintain state
  spending on higher education at least at the level for FY 2006
  in 2009, 2010, 2011
                      Assurances (cont.)
                        Draft Metrics
 Example of metrics regarding the teacher effectiveness assurance:
    “Teacher effectiveness and ensuring that all schools have highly qualified
      teachers – A state would report on the extent to which all students have
      access to qualified and effective teachers and whether or not teachers are
      evaluated based on how well their students perform. More specifically, a
      state would report:
       o the number and percent of teachers in the highest-poverty and lowest-
          poverty schools in the state who are highly qualified;
       o the number and percent of teachers and principals rated at each
          performance level in each local educational agency’s (LEA’s) teacher
          evaluation system; and
       o the number and percent of LEA teacher and principal evaluation
          systems that require evidence of student achievement outcomes”

• Letter from Secretary Duncan to Governors summarizing the metrics:
       Reporting Requirements
1. How these funds were used
2. The number of jobs saved or created by this
3. Tax increases averted by this legislation
4. The state’s progress in reducing inequities in the
   distribution of highly qualified teachers
5. The state’s progress on developing a longitudinal
   data system
6. The progress in implementing valid assessments

              Race to the Top
• Progress toward rigorous college and career-
  ready standards & high quality assessments
• Establishing pre-K to college and career data
  systems that track progress
• Making improvements in teacher effectiveness
  and equitable distribution of qualified teachers
• Providing intensive support and effective
  interventions for the lowest performing schools

           Competitive Grants
• Race to the Top ($4.35 billion)
  – Eligible grantees: States
  – Secretary will use four RTT reforms as main
  – Funds will be distributed in two rounds-Fall 2009
    and Spring 2010
• Innovation Fund ($650 million)
  – Eligible grantees: Districts and non-profit groups

 Key Considerations in Use of Funds
Begin with End in Mind
  • One-time funds only
  • Work must be focused, based on data, and proven
  • Educate yourself (don’t rely on a summary of
    allowable uses, guidance, etc)
  • Dust off IDEA, Title I, and ESEA for allowable uses that
    met YOUR needs
  • Build-in accountability starting day 1 (paper and pen;
    and public perception)
     • All that is legal is NOT acceptable. Unprecedented
       transparency and accountability standards.

                      A Starting Point
                    Key Questions to Ask
 To what extent do the data support my decisions?
 In what ways are we leveraging the funds to align our efforts at the state, district
  and school levels?
 Of the four SFSF assurances, where will your school focus?
 What does the data tell us? What doesn’t the data tell us?
 How does our work align and maximize the governor’s investments?
 How can we use these funds today to plan and improve student achievement for
  the long-term?
 How will our work involve the community? The School Board? My local unit of
  government? Parents? Teachers? Business? CBOs?
 Will we incur any future costs? Can we afford that?
 What are the allowable uses of funds? (How did you spend funds; was it
  effective; and how else might you best utilize funds)
 Am I reinventing the wheel, or can I learn from others?
 How will we know if we succeeded?
 Are the vendors, off the shelf solutions, and professional development tools
  addressing my state, district, or school needs?

  For more information

  National Governors Association
     Center for Best Practices

Education Commission of the States