ARRA Funding and the impact on NYS School Districts




IDEA 611/619

TITLE I

COMPETITIVE GRANTS

BORROWING FUNDS

ENERGY INITIATIVES

STATE STABILIZATION FUNDS



Prepared by School Aid Specialists, LLC. September 2009. For additional information contact SAS at PO Box 762 Guilderland, NY 12084-0762 www.schoolaidspecialists.com





ARRA: IDEA allocations In addition to the regular IDEA Part B section 611 & 619 for the 2009-2010 school year. US Ed Dept recommends use for non-recurring expenditures that will have long-term benefits. Half of the funds will be received in 2009-2010 school year; second half in 2010-2011. Fully obligated no later than Sept 30, 2011.

What is the IDEA, MOE requirement? LEA must budget, for the education of children with disabilities, at least the same total or per capita amount from either of the following sources as the LEA spent for that purpose from the same source for the most recent prior year for which the information is available: . local funds only or . state and local funds.

You can count stabilization funds in this calculation.

Reductions in local-level MOE may be taken for voluntary departures and departures for just cause of special education or related services personnel; decreases in the enrollment of children with disabilities; termination of the obligation of the agency to provide an exceptionally costly special education program to a particular child under specific circumstances; termination of costly expenditures for long-term purchases such as costly equipment or construction of school facilities; and assumption of cost by a state’s high cost fund.

Tracking of ARRA IDEA Funds: www.vesid.nysed.gov/spedfin Must be tracked and accounted for separately from regular IDEA 611 and 619 funds. (FS-10s) Submit Quarterly reports Budget dates 7/01/09 -6/30/10 Districts may be required to spend at least 15% for planning & implementing CEIS activities to academically or behaviorally at-risk students in the general education population. SEDCAR payments for both regular and ARRA funds should be budgeted in regular 611/619 grant

Title I ARRA Funds

$10 Billion nationwide States received half of these funds on April 1, 2009
LEAs must use their Title I ARRA as they use their existing Title I including the requirements to provide equitable services to eligible private school students, professional development set-aside and school choice/SES requirements.
Title I ARRA has same requirements as regular Title I as it relates to set asides for professional development, public school choice and other areas.
Entire Title I ARRA money (except for 15% carryover) must be spent within the current fiscal year. A waiver can be requested to allow carryover to exceed 15%; however, this waiver may not be approved if a waiver has been granted over the last three years.
Due to the size of the supplemental ARRA Title I apportionment an LEA can apply for this waiver early in the school year to plan a two year budget plan.
Title 1 ARRA BOCES expenditures are NOT BOCES aidable. Title I and IDEA do not generate BOCES aid.




Race to the Top grantsCompletely discretionary
4.35 billion Phase 1 will open for applications late in 2009 awards made early 2010 Phase 2 is set to be open in spring 2010 awards made September 2010 $ for adopting common State will be applicants for these funds at least 50% of the award must go to LEAs Another $4.35B is available among ed technology, school improvements grants, investing in innovation, teacher incentive fund, statewide longitudinal data systems School Improvement Grants Largest of the remaining 3/5 billion most of these funds will be directly to starts who will sub-allocate probably through the state budget process
4 major reforms the Education Department is highlighting for inclusion in these grants:
-Effective Teachers and Leaders -Data Systems -Standards and Assessments -Turning around Struggling Schools

$28 billion has been forwarded already in state stabilization moneys - another $12.6 billion going out soon




STATE STABILIZATION FUNDS
Revenue and expenditure recorded in the general fund
The individual district amounts were computed based on the deficit reduction assessment in the Governor’s 2009-10 proposal plus or minus any change in aid for 2008-09 and 2009-10 based on updated database from 11/1/08 to 2/15/09
This funding will continue in 2010-11; however, unclear at this time if dollar amounts will remain the same for each district or will it be based on updated criteria.
Jobs created vs. Lay-offs averted
A job created is a new position created or an existing unfilled position that is filled as a result of recovery act funding
A job retained is an existing position that would not have been filled were it not for recovery funds

How should recipients estimate job creation & retention?
•Jobs are to be estimated and reported on a quarterly basis, although the initial report in October will cover more than 3 months.
•The goal is to estimate full-time equivalent jobs so that the number of hours worked by the employee must be considered in relation to the number of hours normally worked by a full-time employee in that job. The calculation will convert part-time employees into full-time equivalent jobs.




Quarterly reporting
Quarterly reports are cumulative Amendments are made on the cumulative reports
There will be no automatic first payment issued upon Department approval of the Education Stabilization Fund application. Payment will not be made for anticipated expenditures. Therefore, you may enter zero on line 4 of the FS-25. (If line 4 is completed, the amount on that line will not be included in the payment calculation.)
FS-25 claims may be submitted as frequently as monthly but monthly claiming is not required.
Up to 70% of the total available for this project will be payable prior to April 1, 2010.
Up to 90% of the total available for this project will be reimbursed through the FS-25 process. Information about additional requirements that must be met in order to obtain full reimbursement will be provided as reporting requirements are finalized.
Non-Allowable Uses include:
• Payment of maintenance costs;
• Payment for 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; or
School modernization, renovation, or repair that is inconsistent with State law.


State Stabilization Funds continued
Employees must sign off attesting they are being paid in whole or in part from Federal funds INCLUDING stabilization funds accounted for in the general fund (OMB Circular A87)
Employers should set up accounting system or separate tracking method to have year to date expenditure reports with back-up data to quarterly reports and FS-25 claims
Possibly use Program code in 15 digit coding system to track expenses
Taxes averted cannot be used to justify some or all of the fiscal stabilization funds. The original application did request information on taxes averted.
Funds must be obligated by June 30, 2010. According to EDGAR requirements, this means staff services must have occurred and binding commitments made for purchased services by June 30, 2010. Funds must be drawn down by school districts by September 1 in order for Grants Finance to pay all funds by September 15, 2009. For funds not obligated by June 30, 2010, the State will take back funds unless it enacts a re-appropriation allowing districts to carry over funds to the subsequent State fiscal year.