State Plans for Spending Federal Fiscal Stabilization Funds ECS National Education Forum July 10, 2009 Michael Griffith Senior School Finance Analyst Education Commission of the States

K-12 Provisions in the ARRA Three “Pots” of Funding 1. Increases in Current Programs 2. New Funding Streams 3. New Competitive Grants

Funding Guide State ControlFirst Distribution Current ProgramsSome to None End of March (50%) New ProgramsA Great Deal Mid-April (61%) Competitive GrantsVariesFall of 2009

What is In an Application? 1. An assurance that the state will fund both K-12 schools and state institutions of higher education at or above fiscal year (FY) levels 2. Identification of how much of their Education Stabilization Funds (81% of total FSF funding) they plan to expend in FY , FY and FY An outline of how they plan to expend their Government Services Funds (19% of total FSF funding).

State Applications The first round of state spending applications needed to be submitted by states by July 1 st All fifty states submitted their applications in time 40 states, D.C. and Puerto Rico have had their applications approved

Approved Applications 36% of education stabilization dollars were expended in FY % will be expended in FY Leaving 12% for FY states will have 0% remaining for 10-11

Dollars Spent $10.8 billion in FY $15.8 billion in FY $3.5 billion in FY

K-12 Jobs Created or Saved Estimated numbers based on the applications that have been approved so far: – 101,000 positions in FY – 155,000 positions in FY

K-12 vs. Higher Ed. Approved applicants divided their funding 80% on K-12 and 20% to higher education The way that states divided their funding does not necessarily show a commitment, or lack there of, for K-12 over higher education