Federal Stimulus Package

1
Federal Stimulus Package

• Questions and Answers
• K-20 February 24, 2009

2
Overview

• Welcome Ken Kanikeberg, Chief of Staff
• State Fiscal Stabilization Funds Jennifer
  Priddy, Assistant Superintendent for Finance
• Title I, Part A Bob Harmon, Assistant
  Superintendent of Special Program and Federal
  Accountability and Gayle Pauley, Director of
  Title I/LAP and Consolidated Program Review
• School Improvement Janell Newman, Assistant
  Superintendent of School Improvement
• and Bill Mason, Director - District and School
  Improvement Operations
• Special Education Doug Gill, Director of
  Special Education
• Title II, Part D, Education Technology Jacquie
  Wyatt, Educational Technology Specialist
• Child Nutrition George Sneller, Director of
  Child Nutrition Services
• Transportation Allan Jones, Director of Pupil
  Transportation
• MOE and Supplanting JoLynn Berge, Director of
  Budget and Fiscal Services

3
Information

• If you are in a listen-only status for the
  presentation, please feel free to send in your
  questions to
• Nathan Olson Nathan.Olson_at_K12.wa.us.

4
Federal Stimulus Funding - ARRA

• Question What is ARRA?
• Answer ARRA stands for the American Recovery
  and Reinvestment Act. It is used throughout
  these slides.

5
State Fiscal Stabilization

• Question What is the state fiscal stabilization
  money?
• Answer Congress designed the State Fiscal
  Stabilization fund (53.6 Billion nationally) to
  prevent reductions in critical education and
  other services. The Recovery Act divides that
  funding into three parts (1) 48.6 billion for
  basic stabilization funds (2) 4.35 billion for
  State incentive grants and (3) 650 million for
  local education agency innovation grants.

6
State Fiscal Stabilization

• Question How much money is Washington State
  receiving?
• Answer The preliminary estimate is 1 billion.
  Of which 81.8 is for education (819.9 Million)
  and 18.2 is for other government use (182
  Million).

7
State Fiscal Stabilization

• Question When will these moneys be available?
• Answer While we believe these moneys will be
  available within the next two months, we have not
  yet been told a date.
• However, the Washington Legislature must
  appropriate federal funds.

8
State Fiscal Stabilization

• Question How long are these funds available
  for?
• Answer Funds must be obligated within 2 years
  of receiving the grant

9
State Fiscal Stabilization

• Question What must the Governor use these funds
  for?
• Answer Part 1--The Governor must use 81.8 of
  the funds received to restore state support for
  elementary, secondary, and postsecondary
  education to the 2008 or 2009 level (whichever is
  greater). If the Governor determines there is
  insufficient funding to meet the desired level,
  then the Governor shall allocate the funds in
  proportion to the relative shortfall.
• This funding, very likely, does not represent an
  enhancement to district funding. It benefits
  districts by buying down the reduction in state
  funding that districts would otherwise
  experience.
• The easiest use for the K-12 sector is for the
  Legislature to reduce I-728 funding and replace
  the funding with stabilization resources.
• The Legislature is not prevented from reducing
  K-12 by as much as the Governors budget proposal
  and then reducing further as long as MOE
  requirements are met.

10
State Fiscal Stabilization

• Question What must the Governor use these funds
  for?
• Answer Part 1Continued
• If the Governor determines there is insufficient
  funding to meet the desired level, then the
  Governor shall allocate the funds in proportion
  to the relative shortfall.
• If there are resources remaining after
  backfilling K-12 and Higher Education budget
  cuts, then those resources are to be allocated
  out to school districts via the Title I formula.
• This is highly unlikely.

11
State Fiscal Stabilization

• Question What must the Governor use these funds
  for?
• Answer Part 2--18.2 shall be reserved for
  public safety and other governmental services,
  which may include assistance for elementary and
  secondary education and public institutions of
  higher education for modernization, renovation,
  or repair of public school facilities and
  institutions of higher education facilities,
  including modernization, renovation, and repairs
  that are consistent with a recognized green
  building rating system.

12
State Fiscal Stabilization - Basic

• Question What process must the Governors use to
  obtain these funds?
• Answer The Governor must submit an application
  to the Secretary describing how the State intends
  to use the fund, and providing baseline data, and
  assurances, including assuring actions to improve
  teacher effectiveness, develop longitudinal data
  systems, improving academic standards and
  assisting struggling schools.

13
State Fiscal Stabilization - Basic

• Question Will there be an application process
  for these funds?
• Answer We dont know, however an application
  process is likely. Our current understanding is
  that the use of these funds will have to be
  tracked, as well as the impact of these funds
  (i.e. how many jobs were created/saved). If an
  application is required, we expect this would be
  through the iGrants system.
• We will work to minimize this process, and will
  advocate that the state be able to develop the
  application on behalf of districts.

14
State Fiscal Stabilization - Basic

• Question What may LEAs use the basic
  stabilization funds for?
• Answer Any activity authorized under ESEA,
  IDEA, the Perkins Act, or modernization,
  renovation, or repair or public school
  facilities. LEAs may not engage in school
  modernization, renovation, or repair that is
  inconsistent with state law.
• Very significant issue. If the Legislature
  replaces I-728 with stabilization funding, and
  districts can only spend the resources on these
  federal programs, the use of funds will be very
  constricted. If however, the broad activity of
  assisting struggling students district wide, for
  example, is allowable, then these funds could
  become replacement for state activities.

15
State Fiscal Stabilization - Basic

• Question Do Maintenance of Effort and
  Supplanting requirements apply?
• Answer This State Fiscal Stabilization Fund
  includes a maintenance of effort provision that
  may be waived or modified under certain
  conditions. There is no supplement not supplant
  provision applicable to fiscal stability funds.
• However, the Recovery Act provides in section
  14012(d) that, with the prior approval of the
  Secretary, a state or LEA that receives funds
  used for elementary, secondary, or postsecondary
  education as non-federal funds for the purpose of
  maintenance of effort requirements under any
  other program (such as Title I-A, ESEA and IDEA).

16
State Fiscal Stabilization - Basic

• Question What is the maintenance of effort
  (MOE) requirement?
• Answer The State will, in each of FY 2009,
  2010, and 2011, maintain State support for
  elementary and secondary education at least to
  the level of such support in fiscal year 2006.
  The State will, in each of FY 2009, 2010, and
  2011, maintain State support for public
  institutions of higher education (not including
  support for capital projects or for research and
  development) at least at the level of such
  support in FY 2006.
• To use these funds, the state cannot cut below
  the 2005-06 state fiscal year level. This is a
  tremendous level of flexibility for the state.

17
State Fiscal StabilizationIncentive Grants

• Question How much is the state receiving for
  incentive grants?
• Answer These are competitive grants awarded by
  the Secretary of Education on a discretionary
  basis.

18
State Fiscal StabilizationInnovation Funds

• Question What are Innovation Funds and what are
  they to be used for?
• Answer Innovation Funds are grants from U.S.
  DOE directly to school districts for improving
  student achievement. Grants will be targeted to
  school districts that (a) expand their work and
  serve as models for best practices (b) work in
  partnership with the private sector and the
  philanthropic community and (c) identify and
  document best practices that can be shared, and
  taken to scale based on demonstrated success.

19
Title I, Part A Funds

• Question How much money is Washington State
  receiving for Title I, Part A?
• Answer The preliminary estimate is 135
  Million.
• Washington State received a 191.5 Million in our
  regular Title I award for FY 2008-09.

20
Title I, Part A Funds

• Question How and when will the funds be
  distributed to school districts?
• Answer The US Department of Education will
  distribute funds based on two of the Title I
  formula components as defined in ARRA. Title
  funds are due to arrive in states at the end of
  March. Soon thereafter, OSPI will allocate funds
  to school districts.
• Again, OSPI cannot distribute funds until we have
  authorization from the Legislature.

21
Title I, Part A Funds

• Question When can the funds be encumbered or
  spent? By when must they be obligated or used
  (will the Tydings amendment apply or a shorter
  period)?
• Answer As soon as the Title I ARRA funds are
  received by school districts, they may be
  encumbered and spent. The Tydings amendment
  will apply which allows carryover.

22
Title I, Part A Funds

• Question Will an additional iGrant or other
  application be needed to receive the stimulus
  funds?
• Answer A separate application will be used in
  iGrants.

23
Title I, Part A Funds

• Question Will existing Maintenance of Effort
  (MOE) and supplanting rules apply?
• Answer Yes Maintenance of Effort is 90 for
  Title I.
• We are exploring whether or not the state can
  apply for a statewide waiver.

24
Title I, Part A Funds

• Question Will all current Title I, Part A
  requirements and set-asides (i.e. transportation
  choice, SES services) be required for the
  stimulus funds or will they be treated
  separately?
• Answer Based on current information, we expect
  all existing Title I requirements will remain in
  effect for these stimulus funds. Waivers may be
  a possibility, based on guidance from the
  Department.

25
School Improvement

• Question How much of the Title I funding from
  the federal stimulus package will be available
  for School Improvement in Washington State?
• Answer OSPI anticipates an increase of 44.5
  million from the federal stimulus package over
  the next biennium (2009-2011), or 22.25 million
  for 2009-2010 and 22.25 million for 2010-2011,
  to support school improvement.

26
School Improvement

• Question How will additional funds provided
  through the stimulus package be distributed to
  LEAs?
• Answer OSPI will develop a competitive grant
  process to allocate 95 of these funds the
  remaining 5 will be used to support state-level
  administration of the grants. Funds will be
  allocated consistent with provisions of the
  federally mandated NCLB Act and other federal
  guidelines established for this stimulus package.

27
School Improvement

• Question What criteria will be used to award
  grants supported by the stimulus package to LEAs?
  
• Answer OSPI anticipates federal guidelines for
  allocation of stimulus package funds will be
  similar to guidelines for use of 1003g funds in
  the 2007-2009 biennium. OSPI will submit a
  proposal regarding use of stimulus package funds
  to DOE. Once approved, OSPI will utilize
  guidelines consistent with the proposal to award
  grants to LEAs.

28
School Improvement

• Question How will LEAs be notified of the
  opportunity to apply for grants supported through
  the stimulus package? What is the timeline for
  LEAs to apply for these grants?
• Answer Once the states proposal for using
  stimulus package funds is approved by DOE, OSPI
  will use the iGrants system to notify
  superintendents and district fiscal managers
  regarding the application process for these
  competitive grants. Given the anticipated start
  date of July 1, 2009 for stimulus package grants
  awarded for the 2009-2010 school year, we foresee
  a relatively short timeline for the application
  process.

29
School Improvement

• Question What accountability measures have been
  established by DOE or OSPI for use of stimulus
  package funds?
• Answer OSPI is working with DOE to understand
  accountability requirements, including specific
  expectations regarding increasing employment in
  Washington State, associated with the use of
  stimulus package funds.

30
Special Education

• Question How much of the ARRA is available for
  Special Education?
• Answer The breakdown for Washington State is
  221,357,461 in IDEA Part B funds for students
  ages 3-21 and 8,475,569 for students ages 3-5
  for the biennia.

31
Special Education

• Question When will the funding be available?
• Answer There are two projected release dates.
  July 1, 2009 and July 1, 2010. As far as we
  know, the funding will be split equally between
  the two years.

32
Special Education

• Question What is the intention of the funding?
• Answer The intention of the funding is to help
  districts mitigate the affect of the recent
  reduction in local revenues and State support for
  education.
• However, no official guidance has been provided
  at this time.

33
Special Education

• Question How will these funds be allocated?
• Answer Again, no official guidance has been
  provided.
• Our assumption is that the State will be directed
  to use the current allocation model and formulas
  which allocate a minimum of 85 of the funding to
  school districts.

34
Special Education

• Question What is the estimated funding per
  pupil?
• Answer Although IDEA funding is not provided on
  a per pupil basis, our best estimate is 892
  increase per student per year and 458 increase
  for 3-5 year olds for each of the two years.

35
Special Education

• Question How does this affect MOE?
• Answer No guidance has been provided at this
  time.
• Our understanding is that current MOE rules apply
  including all MOE exceptions currently identified
  in federal and state regulations.

36
Special Education

• Question Is there an allowable exception for
  the amount of the increase in IDEA funding?
• Answer Current regulations call for any fiscal
  year in which the federal allocation received
  exceeds the federal allocation received in the
  previous year, a district may reduce the level of
  state and local expenditures by not more than 50
  of the increase.

37
Educational Technology

• Question What requirements will govern
  allocation of the 2.0 million in formula
  flow-through funds?
• Answer The same as current formula funds at
  least 25 percent of EETT funds must be used on
  professional development that supports technology
  integration with teaching and learning. The
  remainder of these funds must be spent to improve
  the technology literacy of students, integrate
  technology into curriculum or improve student
  achievement.

38
Educational Technology

• Question Are all districts eligible for formula
  flow-through funds?
• Answer Nearly all. A few very small districts
  do not report Title I student counts and, as a
  result, are not eligible for these funds.

39
Educational Technology

• Question How will OSPI allocate the 2.0 M in
  competitive funds?
• Answer We will find additional peer coaching
  applicants in the grant competition under way
  now. The application deadline is March 31, 2009
  (http//www.k12.wa.us/EdTech/eett09.aspx).
• We will also introduce a send complementary
  professional development program designed for
  educators who want to expand basic technology
  integration skills and learn the dynamics of
  student-centered instruction. We expect the
  application for this grant program to be
  available on March 18 and due April 30.

40
Educational Technology

• Question What districts are eligible to apply
  for Title II D competitive funds?
• Answer The list of 145 eligible districts is
  online at http//www.k12.wa.us/EdTech/eett09-eligi
  ble.aspx

41
Educational Technology

• Question Why are only some districts eligible
  for Title II D competitive funds?
• Answer To be eligible, school districts must
  meet these strict federal requirements
• Highest percentage of children from families with
  incomes below the
• poverty line, AND
• Serve one or more schools identified for
  improvement, OR
• Did not meet Annual Yearly Progress, OR
• Have a substantial need for assistance with the
  purchase and use of
• technology.

42
Child Nutrition Services

• Question Is there any funding for school
  nutrition program equipment? How much?
• Answer Yes - 100 million nationally

43
Child Nutrition Services

• Question How will it be distributed?
• Answer Funds will be allocated to states on a
  pro rata basis determined by total meals served
  in each state. Once the amount for each has been
  determined, states will conduct a competitive
  grant process that will award funds to purchase
  replacement equipment in the school nutrition
  programs in schools having enrollments of at
  least 50 free and reduced price eligible
  students.

44
Child Nutrition Services

• Question When will districts expect to receive
  the funds?
• Answer This is unknown at this time.

45
Child Nutrition Services

• Question How will the grant program be
  administered?
• Answer OSPI will provide grant opportunities to
  all districts in need of replacement equipment
  having at least one school with enrollment of 50
  or more students eligible for free and reduced
  price meals via the OSPI iGrants system.

46
Pupil Transportation

• Question Is there any federal stimulus funding
  available for school transportation?
• Answer The funding most directly associated
  with school transportation is through the
  National Clean Diesel Campaign (NCDC) of the
  Environmental Protection Agency (EPA). The NCDC
  is provided with a total of 300 Million
  nationally. The NCDC is splitting that amount up
  with 210 Million going to the EPA (Clean Diesel
  Collaborative) regions and 90 Million between
  the individual states. The West Coast
  Collaborative (which includes Washington) share
  of the 210 Million is 18 Million. Of the 90
  Million going directly to the states,
  Washingtons share is 1.7 Million. The
  Department of Ecology will oversee the
  distribution of Washingtons 1.7 Million. While
  school transportation is eligible for this
  funding, the funding is not restricted to school
  transportation. The target is the reduction of
  diesel emissions and the grants from any source.

47
Pupil Transportation

• Question What types of grant requests are
  expected to be eligible through the West Coast
  Collaborative?
• Answer The focus is on reduction of diesel
  emissions. The regional approach is to fund
  large grants in the 1 Million to 5 Million
  range and could potentially fund up to 50 the
  cost of new buses. Because WA has retrofit all
  qualifying school buses with state funds, it is
  not likely that a school district would be able
  to request a retrofit program. Again, the
  competition for the grant funds will include
  other sectors besides school transportation.

48
Pupil Transportation

• Question What types of grants will be funded
  through the Department of Ecologys 1.7 Million?
• Answer The details of the Department of Ecology
  program for the distribution of the states
  portion is still being developed but some of it
  will target assisting school districts to replace
  old buses in the poorest school districts (as
  measured by the number of free and reduced lunch
  students). This program would not require
  delivery of the bus prior to June 30, 2009,
  however. They would also accept proposals for
  retrofits, engine replacement or repowering.
  There will be more information available later on
  scoring matrix for grant applications.

49
Pupil Transportation

• Question How will I hear details of these
  grants?
• Answer Both the Department of Ecology and the
  regional (EPA) grant program are emphasizing the
  rapid distribution of these funds to ensure a
  prompt positive impact on the economy. OSPI has
  already distributed a statement of interest to be
  completed and returned to the Department of
  Ecology prior to March 3. This is not a grant
  application, but will be used to determine the
  level of interest by school districts. This in
  turn will be used to set funding amounts for
  different grant programs at Ecology. The grant
  information will be available through Ecologys
  website. OSPI will distribute what information
  we receive by email through the regional
  transportation coordinators to the school
  district transportation directors. The EPA is
  expecting their grant deadline to be between the
  middle of March and the first part of April.
  Districts interested in submitting a grant
  application for the EPA grant should think about
  getting started working on that process as soon
  as possible.

50
Pupil Transportation

• Question Who should we contact at Department of
  Ecology for more information?
• Answer Carrol A. Johnston
• Diesel Coordinator
• Air Quality Program
• Department of Ecology
• [phone] carr461_at_ecy.wa.gov

51
Pupil Transportation

• Question What is the contact information to get
  more information for the EPA Clean Diesel
  Collaborative Regions grant program?
• Answer
• West Coast Collaborative http//westcoastcollab
  orative.org/
• or the EPA site at http//www.epa.gov/cleandiese
  l

52
Maintenance of Effort

• Its not about how much in federal money you
  receive or spent!
• Its about how much you spent in state and local
  money from one year to the next.

53
Maintenance of Effort Title I

• For all NCLB programs, MOE is a 90
  requirement. This calculation is done each
  year as part of the districts F-196 financial
  statements and is referred to as the
  Cross-cutting maintenance of effort test.
• Districts pass, if either of the following is
  met
• If total state and local dollars spent is 90 of
  previous
• year OR
• If the per pupil amount of state and local
  dollars spent is
• 90 of previous year (takes into account
  enrollment
• reductions)

54
Maintenance of Effort Title I

• Federal programs that are impacted by this test
  include
• - Title I, Part A
• - Title I, Part B, Subpart 3, Even Start
• Title I, Part D, Prevention and Intervention
  Programs for Children and Youth
• who are Neglected, Delinquent, or At-Risk
• - Title I, Part F, Comprehensive School Reform
  
• - Title II, Part A, Improving Teacher Quality
  State Grants
• - Title II, Part D, Educational Technology
  State Grants
• - Title III, Part A, English Acquisition State
  Grants
• - Title IV, Part A, Safe and Drug-Free Schools
  and Communities
• - Title IV, Part B, 21st Century Learning
  Centers and
• - Title VI, Part B, Subpart 2, Rural Education.

55
Maintenance of Effort Title I

• For school year 2008-2009, the test was
• - In school year 2007-2008, did the district
  spend at
• least 90 (either in total dollars or per
  pupil) of
• what it spent in school year 2006-2007?
• A district that fails (very few!), has their
  school
• year 2008-2009 federal grants reduced by the
• amount of the fail.

56
Maintenance of Effort Title I
57
Maintenance of Effort Special Ed

• For IDEA, MOE is a 100 requirement. This
  calculation is done each year
• as part of the districts F-196 financial
  statements and is referred to as the
• Special education maintenance of effort
  test.
• Districts pass, any one of the following is
  met
• If total state and local dollars spent is 100 of
  previous year
• OR
• If the per pupil amount of state and local
  dollars spent is 100 of previous year (takes
  into account enrollment reductions)
• OR
• If LOCAL dollars spent is 100 of previous year
• OR
• If the per pupil amount of LOCAL dollars spent is
  100 of previous year

58
Maintenance of Effort Special Ed

• There are EXCEPTIONS to these rules!
• High-cost student graduates or moves
• Significant capital outlay
• Voluntary departure of special ed personnel
• Used to say high-cost staff replaced with
  lower-cost staff, now only says departure of
  special ed personnel.
• Districts may use, as local funds, up to 50
  percent of the increase in federal flow-through
  funding from the prior year to meet the
  maintenance of effort requirements of IDEA.

59
Maintenance of Effort Special Ed
The maximum amount that District A may use for
local maintenance of effort (MOE)
reduction Prior Years Allocation
900,000 Current Years Allocation
1,000,000 Increase 100,000 Maximum
Available for MOE Reduction (50) 50,000
60
Supplanting Title I Example

An LEA may use Title I funds only to supplement
and, to the extent practical, increase the level
of funds that would, in the absence of Title I
funds, be made available from non-Federal sources
for the education of students participating in
Title I programs. In no case may Title I funds
be used to supplant--i.e., take the place
of--funds from non-Federal sources.
61
Supplanting Title I Example

• The U.S. Dept. of Education presumes supplanting
  has occurred if
• The district used federal funds to provide
  services that it was required to make available
  under other federal, state, or local laws.
• The district used federal funds to provide
  services that it provided with non-federal funds
  in the prior year.
• The district used Title I (Parts A or C) funds to
  provide a service for Title I students that it
  provided with non-federal funds for non-Title I
  students.

62
Supplanting Title I Example

• Supplanting presumptions are rebuttable if the
  district can demonstrate that it would not have
  provided the services in question with
  non-federal funds had the federal funds not been
  available.

63

Thank you for your time.