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How Will Education be Impacted by the President’s Economic Recovery Plan?
The ARRA includes two types of education funding – Additional Grants to States (IDEA, ESEA Title I, and HEA specific) and State Fiscal Stabilization Funds.
I. Additional Grants to States
A. Individuals with Disabilities Education Act (IDEA) – total of $12.2 billion* for special education including:
- $11.3 billion for Grants to States (Part B; Section 611)
- $400 million for Preschool Grants (Part B; Section 619)
- $500 million for Infants and Toddlers with Disabilities Grants (Part C)
* These funds are to be distributed in year one and are required to be obligated in state and local budgets by July 2010. States are required to maintain a fiscal year 2009 funding level to receive funds. Current IDEA law permits a local educational agency (school district) to reduce its expenditure of local funds by up to 50 percent of the amount of an increase in state and/or federal funds over the previous fiscal year. The details of how this provision will impact new IDEA monies are still under review.
B. Elementary and Secondary Education Act (ESEA), Title I – total of $13 billion for improving outcomes for disadvantaged students including:
- $5 billion for targeted grants
- $5 billion for finance incentive grants
- $3 billion school improvement grants
Current Title I law regarding conditions under which school districts might reduce local expenditures against these federal fund applies to these funds. Additional funds for ESEA include:
- $100 million for Impact Aid
- $720 million for School Improvement Programs
- $200 for Innovation and Improvement
C. Higher Education Act (HEA)
- $15.64 billion for Student Financial Aid (Pell Grants)
- $200 million for Federal Work Study
II. State Fiscal Stabilization Funds – total of $53.6 billion available to states
A. $43.84 billion* for preK‐16 education purposes (only programs authorized under ESEA, IDEA, the Adult and Family Literacy Act, or the Perkins Vocational and Technical Act).
B. $9.76 billion for education, public safety, and other government services (including remodeling and renovation for public schools and private or public institutions of higher education with certain limitations).
* These funds are intended to fill the gap between the FY 2006 funding level and 2008 or 2009 elementary, secondary, and post‐secondary state funding levels in fiscal years 2009, 2010, and 2011. States are required to maintain a fiscal year 2006 funding level to receive funds.
Waiver authority: The Secretary of Education has limited waiver authority to allow states to count the stabilization funds as non‐federal funds when calculating state and local maintenance of effort. This waiver authority applies only to fiscal years 2009, 2010 and 2011, is intended to be very narrow, and relates only to relief of fiscal burdens on state and local agencies.
The President has promised unprecedented transparency regarding the manner in which these and all funds in the ARRA are used. Activities to support that promise include a new web site, www.recovery.gov, which will provide information on the use of funds to the public. For additional funding estimates, review the summary from the U.S Department of Education. eSchoolNews and eSchoolCampus are watching the potential impact on education agencies, both public K-12 and higher education institutions. The National School Boards Association is a not-for-profit organization represents the school board perspective before federal government agencies and with national organizations that affect education, and by providing vital information and services to state associations of school boards and local school boards.
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