April 2009 Copyright © 2009 Mississippi Department of Education American Recovery and Reinvestment Act of 2009 (ARRA) April 2009

April 2009 Copyright © 2009 Mississippi Department of Education

American Recovery and Reinvestment Act of 2009

(ARRA)

April 2009


STABILIZATION AWARD PROCESS

• The United States Department of Education (USDE) will award stabilization funds to governors in two phases. To receive its initial stabilization fund allocation, a state must submit to the USDE an application that provides: Assurances that the state is committed to advancing

education reform in four specific areas; Baseline data that demonstrate the state's current

status in each of the four education reform areas; Maintenance-of-effort (MOE) information; and A description of how the state intends to use its

stabilization allocation.

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COMMITMENT TO ADVANCING EDUCATION REFORM

• Increase teacher effectiveness and address inequities in the distribution of highly qualified teachers;

• Establish and use a pre-k-through-college-and-career data system to track progress and foster continuous improvement;

• Make progress towards rigorous college- and career-ready standards and high-quality assessments that are valid and reliable for all students, including limited English proficient students and students with disabilities; and

• Provide targeted, intensive support and effective interventions to turn around schools identified for corrective action and restructuring.

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FUNDING PROJECTIONS: STATE FISCAL STABILIZATION FUND

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CATEGORY AMOUNT DESCRIPTION

Education Funding (81.8% of total)

$392,067,945

A one-time appropriation awarded to governors by formula. ARRA mandates that 81.8 percent of the total stabilization funds be used for the support of public elementary, secondary, higher education and, as applicable, early childhood education programs and services. States must also use their allocations to help restore funding for fiscal years 2009, 2010 and 2011 in these areas.

Government Services Funding

(18.2% of total)$87,232,721

A one-time appropriation awarded to governors by formula. ARRA mandates that 18.2 percent of the total stabilization funds be used to support public education through other government services such as public safety.

Funding Projections: American Recovery and Reinvestment Act State Fiscal Stabilization Fund

FUNDS WILL BE RELEASED IN TWO PHASES – BASED ON APPLICATION FROM GOVERNORS’ OFFICE


LEA USES OF EDUCATION STABILIZATION FUNDS

LEA Uses of Education Stabilization Funds

Cautionary Note: All of the uses identified in this Illustration are subject to ARRA and other applicable requirements, including prohibitions relating to the uses of funds.

Basic Rule

An LEA may use its Education Stabilization funds for any activities authorized under current federal laws on education spending, regardless of whether the Education Stabilization Funds were awarded through the State’s primary education funding formula(e) or based on the LEA’s relative share of funding under Title I, Part A.

Governor’s Control

A Governor does not have the discretion to direct how an LEA must use its Education Stabilization Funds.

Education activities consistent with State and local requirements

An LEA may use its Education Stabilization allocation for such purposes because these activities are authorized under Title VIII of the ESEA (Impact Aid). NOTE: The LEA must maintain records that track separately the specific uses of the funds (see Part VII: “Transparency, Accountability, Reporting, and Other Obligations”).

Modernization, renovation, and repair of public school facilities

Section 14003(a) of the ARRA expressly authorizes an LEA to use Education Stabilization funds for this purpose.

Construction

Construction is allowable as an authorized activity under Title VIII of the ESEA (Impact Aid).

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PROHIBITIONS ON AN LEA’S USE OF EDUCATION STABILIZATION FUNDS

Cautionary Note: This list is not meant to be all-inclusive. LEAs must carefully review, for example, all requirements in Titles XIV, XV, and XVI of Division A of the ARRA relating to the Education Stabilization Fund. An LEA may not use Education Stabilization funds for –

Payment of maintenance costs;

Stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public;

Purchase or upgrade of vehicles;

Improvement of stand-alone facilities whose purpose is not the education of children, including central office administration or operations or logistical support facilities;

Financial assistance for students to attend private elementary or secondary schools, unless the funds are used to provide special education and related services to students with disabilities, as authorized by the IDEA;

School modernization, renovation, or repair that is inconsistent with State law; or

Restoring or supplementing a “rainy day” fund.

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INDIVIDUALS WITH DISABILITIES EDUCATION ACT (IDEA) FUNDS

• Additional funding for programs under Part B of IDEA, which provides funds to state educational agencies (SEAs) and local educational agencies (LEAs) to help them ensure that children with disabilities, including children aged three through five, have access to a free appropriate public education to meet each child's unique needs and prepare him or her for further education, employment, and independent living.

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FUNDING PROJECTIONS: IDEA

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Funding Projections: American Recovery and Reinvestment Act Individuals with Disabilities Act

CATEGORY AMOUNT DESCRIPTION

Part B (611) and Pre-School (619)

$122,347,422

Additional funding for programs under Part B of IDEA, which provides funds to state educational agencies (SEAs) and local educational agencies (LEAs) to help them ensure that children with disabilities, including children aged three through five, have access to a free appropriate public education to meet each child's unique needs and prepare him or her for further education, employment, and independent living.

OSE received 50% on April 1, 2009 for Part B and Pre-School (considered to be 2009 Funds). OSE will receive the other 50% by September 30, 2009.


Funding Uses of ARRA

Principles of ARRASuggested Uses of IDEA

ARRA FundsNotes

a. Spend funds quickly to save and create jobs

Positive Behavior Specialists

School Psychologists Transition

Coordinators Job Coaches

LEAs must have a plan to sustain personnel funding once the ARRA funds are gone

ARRA funds are federal funds, to continue funding newly created positions, LEAs eventually will have to use Part B monies




ARRA FundsNotes

b. Improve student achievement through school improvement and reform

Assistive Technology Devices

Equipment: computers, smart boards, laptops, etc.

Instructional Software Pilot Programs for

Autism, Early Childhood, Pre-School, etc.

Drop-out Prevention Program

One time investments One time funding

LEAs must plan how they sustain/continue pilot and other programs



ARRA FundsNotes

1. Progress toward rigorous college- and career-ready standards and high-quality assessments

Transition Coordinator

Job Coaches Workforce

Development Community Training Drop-out Prevention

Program

See personnel note on a above

One time investments One time funding LEAs must plan how

they sustain/continue pilot and other programs




Principles of ARRASuggested Uses of IDEA ARRA Funds

Notes

2. Establish Pre-K to college and career data systems

Expand Pre-K services

Pilot Programs for Early Childhood or Pre-School

Computer tracking programs and databases

LEAs must plan how to maintain expansion of Pre-K services



ARRA FundsNotes

3. Improve teacher effectiveness

District-wide Professional Development for teachers of students with disabilities – training in and out of district, conferences, seminars

Training for use of Assistive Technology Devices

Data collection Teacher Stipends for

summer training Equipment:

computers, smart boards, laptops, etc.




Notes

4. Provide intensive support and effective interventions

Positive Behavior Specialists

Interventionists School Psychologists Tracking software Target those that

score minimal on MCT2 in grades 4, 5, 6, and 8; students failing one subject; Dyslexia; students scoring Basic on MCT2; students scoring minimal in reading for grades 4, 5, 6, and 8

After school Tutoring Program and Extended Programs

Drop-out Prevention Programs

CEIS – 15% of allocation if required

CEIS - up to 15% allowed if not required


LEAs must plan how they sustain/continue pilot and other programs




Notes

c. Ensure transparency for reporting and accountability

Software Track ARRA

separately Indirect Costs Data Manager






Notes

d. Invest thoughtfully to minimize the “funding cliff”

Specialized Buses Handicap Accessible

upgrades Specialized

Playground equipment for students with disabilities

Equipment: computers, smart boards, laptops, etc.

Software



Remember for ARRA

• ARRA funds are a one time allocation and must be used for excess costs of providing special education and related services to children with disabilities – one time investments/one time funding

• All ARRA funds are considered to be part of the grant award for 2009

• All ARRA funds must be obligated by September 30, 2011

• All ARRA funds must be drawn down by December 30, 2011


Remember for ARRA

• All ARRA funds must be tracked separately• All IDEA regulations apply• CEIS funds must be included in LEA budget if these funds

are required to be included in your 2009 allocation• Private School Participation funds must be set aside• CEIS and Private School Participation can be drawn from

your 2009 Part B Allocation, thus removing the extra tracking requirement for the ARRA portion

• MOE must be maintained, supplement not supplant applies


Remember for ARRA

• OSEP encourages LEAs to review their SPP/APR data and to target the areas where they show non-compliance for use of the one-time ARRA monies (i.e. Indicator 1 Graduation, Indicator 2 Drop Out, Indicator 14 Transition, etc.)

• LEAs should use the SPP/APR data to guide this one time use of funds – LEAs should also consider how the activities can be sustained after the ARRA funds are gone

• Do not allow any ARRA funds to expire


ARRA Funding Codes

• IDEA, Part B (611) - Fund Number 2569 and Revenue Function Code will be 4478

• IDEA, Preschool (619) - Fund Number 2566 and Revenue Function Code 4478


CEIS Calculation Example

• Reg Allocation Part B (611) = $5,000

• Reg Allocation Pre-School (619) = $1,000

• ARRA Part B (611) = $6,000

• ARRA Pre-School (619) = $1,200

• TOTAL ALLOCATIONS = $13,200


CEIS Calculation Example continued…

• Example: TOTAL ALLOCATIONS = $13,200 CEIS Calculation = $13,200 X 15% = $1,980 LEA can enter $1,980 for CEIS on the Reg

Allocation Part B line 17 of the Budget Page

• Calculate using ALL allocations but for ease of recordkeeping expend it out of your Part B funds only.


Private School Participation Calculation

• Also, Private School Participation must be calculated based on BOTH Part B allocations (Regular and ARRA) AND Pre-School allocations (Regular and ARRA)

• Part B Regular and ARRA Calculation: Using the total allocations from the example, $11,000

(5,000 + 6,000) would be the numerator Private School Students Ruled Eligible for services = 20 Child Count = 280 (ages 3 to 21)


Private School Participation Calculation continued…

• Formula: Pri Sch Elg Stu *(Total Allocations Part B

Regular and ARRA/(Private Sch Elg Students + Child Count))

20 * (11,000/(20 + 280)) = 20 * $36.66 = $733.33 LEA can enter $ 733.33 for Private School

Participation on the Regular Allocation Part B line 18 of the Budget Page


Private School Participation Calculation

• Pre-School and ARRA Calculation: Using the total allocations from the example,

$2,200 (1,000 + 1,200) would be the numerator Private School Students Ruled Eligible for

services = 5 Child Count = 95 (ages 3 to 5)


Private School Participation Calculation continued…

• Formula: Pri Sch Elg Stu *(Total Allocations Pre-School

Regular and ARRA/(Private Sch Elg Students + Child Count))

5 * (2,200/(5 + 95)) = 5 * $22.00 = $110.00 LEA can enter $ 110.00 plus the $733.33

(843.33) for Private School Participation on the Regular Allocation Part B line 18 of the Budget Page


Private School Participation

• Part of the consultation for the Private School Proportionate Share is how ARRA monies will be spent

• One option would be to consider spending some in SY 2009-2010 and the remainder in SY 2010-2011

• All must be spent by September 30, 2011


MOE and CEIS

• Any LEA considering reducing their MOE because of the large allocation they will receive in 2009 with the regular and ARRA allocations using the 50% reduction (outlined in §300.205) AND who elect to set aside up to 15% for CEIS (§300.226), should review Appendix D to Part 300, Example 2.


Example of MOE and CEIS

• LEA received $50,000 in allocations in 2008

• LEA receives $100,000 in allocation in 2009

• Applying the 50% reduction allowed under §300.205 – (100,000 – 50,000) * 50% = $25,000

• LEA elects to use 15% for CEIS in 2009 = $15,000



• From Appendix D: LEAs that seek to reduce their local maintenance of effort in accordance with §300.205(d) and use some of their Part B funds for early intervening services under §300.226 must do so with caution because the local maintenance of effort reduction provision and the authority to use Part B funds for early intervening services are interconnected. The decisions that an LEA makes about the amount of funds that it uses for one purpose affect the amount that it may use for the other.



• Using Example 2 in Appendix D: MOE Reduction = $25,000 CEIS = $15,000 (must be less than the MOE

50% Reduction) Difference = $10,000 If LEA uses no funds for MOE, then they can

use $15,000 for CEIS If LEA uses $15,000 for CEIS, then it can only

use $10,000 for MOE


http://www.mde.k12.ms.us/Stimulus/index.html


601-359-3498http://www.mde.k12.ms.us/special_education/

Ellen Davis [email protected]

http://www.mde.k12.ms.us/special_education/

Documents

April 2009 Copyright © 2009 Mississippi Department of Education American Recovery and Reinvestment Act of 2009 (ARRA) April 2009