Escondido Union School District Budget Update The American Recovery and Reinvestment Act (ARRA)

FEDERAL STIMULUS PROVISIONS American Recovery and Reinvestment Act (ARRA) – Goals are to: –Preserve and create jobs –Assist those most impacted by the recession –Invest in infrastructure and other projects for long-term economic benefit –Stabilize state and local budgets to minimize reductions in essential services and minimize tax increases

Federal Stimulus Amounts

Federal Stimulus Timelines

State Fiscal Stabilization Funds (SFSF) In keeping with federal intent, states are going to be required to follow a rigorous set of assurances, including that funding will be used to advance education reform in four areas: –Achieving equity in teacher distribution –Improving collection and use of data –Enhancing quality of standards and assessments (English learners and special education students) –Supporting struggling schools

State Fiscal Stabilization Funds (SFSF) States will also need to provide baseline data that demonstrate the state’s current status in each of the four reform areas States will also have to provide a description of how it intends to use its stabilization money SFSF funding will be awarded in two phases –Phase one based on state’s application –Second phase awarded after approval of state’s plan, which must also detail how a state will carry out the recordkeeping and reporting aspects of ARRA, and demonstrate how SFSF funds will be used in a fiscally prudent way to improve teaching and learning

State Fiscal Stabilization Funds (SFSF) States must provide a level of support to education that is comparable to at least 2006 Heavy accountability, transparency, and reporting requirements will need to be met by states and Local Education Agencies (LEAs) All stimulus monies will need to accounted for separately - all encumbered by Sept 30, 2011 California’s application for SFSF was submitted on April 9, 2009 – Feds intend to respond to states within 2 weeks of submission

State Fiscal Stabilization Funds (SFSF) Districts will be required to submit an application to CDE in order to receive SFSF – an application is currently being developed The assurances that appear on the state application are likely to reappear on the application required of LEAs The first allocation of funds could happen as early as May – though amounts are still unknown Allocation of money to LEAs may mirror the mid-year cuts – one-half to revenue limits and one-half to categorical program restoration

State Fiscal Stabilization Funds (SFSF) SFSF monies are considered the most flexible of the amounts included in the ARRA –Funding is intended to save/create jobs –Funding should be used to increase student performance –States and LEAs are encouraged to use the money for innovative approaches to student achievement As with any federal funding, LEAs will be required to repay quarterly interest on any unused funds

State Fiscal Stabilization Fund – Competitive Grants About $5 billion of federal stabilization monies held for competitive grants: –“Race to the Top” grants to states to help drive significant improvement in student achievement –Awarded to states that have made significant progress in meeting the four assurances –$650 million reserved for “innovation” awards that help expand successful practices, and provide the opportunity to work in partnership with the private sector and the philanthropic community

Federal Stimulus – Title I Focus for spending Title I ARRA monies is educational reform, accountability, and progress on assurances In its committee report for the ARRA, Congress strongly encourages LEAs to use some of the Title I funding to expand early childhood programs and secondary school programs Department of Education advises LEAs to invest these one-time monies carefully, and in a way that does not result in unsustainable commitments once the funding is gone CDE working with USDE on waiver of carryover rules and maintenance-of-effort requirements

Federal Stimulus – Title I 50% of funding has already arrived in CA – second phase dependent on changes to Consolidated Application process to increase reporting requirements Funding must be distributed based on current Title I allocation formulas and may only be used for Title I students at Title I sites All funding must follow the “supplement, not supplant” rules Program Improvement set-asides must be followed- 5% teacher training and 20% for supplemental services to students

Federal Stimulus – IDEA Part B 50% of California’s supplemental IDEA funding has arrived – but CDE needs legislative permission to release it to LEAs In order to receive the second phase of funding, CA must submit an amendment to its 2009 application to address additional recordkeeping requirements All IDEA recovery funds must be obligated by September 30, 2011 Use of funds must be consistent with all IDEA, Part B statutory and regulatory requirements

Federal Stimulus – IDEA Part B IDEA recovery funds are supplementary, thus, no supplanting Important – up to 50% of the increased IDEA Part B funding may be used to offset local funding (encroachment) for the education of students with disabilities –But, freed-up funds must be used for other activities allowable under Federal Elementary and Secondary Education Act (ESEA) –LEAs are encouraged to use freed-up funds for one-time purposes consistent with SFSF goals –There will be heavy reporting requirements on the use of any freed-up local funds

Federal Stimulus – Mixed Message? States and LEAs have been told they need to: –Hurry and spend to save/create jobs But, watch out for the “funding cliff” of unsustainable commitments But, spend in a fiscally prudent way But, all the “old rules” about “supplement, not supplant” and comparability still apply –Try innovative approaches But, implement reforms and boost student achievement, too But, do so in a way that is more transparent than ever before But, you are being held accountable like never before, in some cases by regulations not even written yet

Federal Stimulus – Mixed Message? California School Board’s Executive Director Scott Plotkin: “We continue to advise districts to use caution when considering the use of these stimulus funds….We appear to be getting mixed messages from the new secretary (Secretary of Education Arne Duncan), with strong admonitions to ‘save jobs’ with these funds, but with another strong message about using the money for innovative approaches to student achievement.”