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American Recovery and Reinvestment Act of 2009

This resource provides guidelines and information on the American Recovery and Reinvestment Act (ARRA) IDEA funds for schools and districts to ensure proper allocation and usage of funds for special education services. It covers the timeline, allocation amounts, reduction in Maintenance of Effort (MOE) requirements, Coordinated Early Intervening Services (CEIS), and reporting requirements.

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American Recovery and Reinvestment Act of 2009

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  1. American Recovery and Reinvestment Act of 2009 IDEA Recovery Funds for Services to Children and Youths with Disabilities

  2. American Recovery and Reinvestment Act Stabilization Funds Increases to Formula Grants Education Secretary’s Portion Governor’s Portion IDEA Part B IDEA Part C Title I School Improvement Grants Ed Tech Grants Homeless Ed Voc Rehab Independent Living Impact Aid Competitive/ Innovation Grants

  3. Use of ARRA IDEA Funds • All IDEA recovery funds must be used consistently with the current IDEA, Part B statutory and regulatory requirements and applicable requirements in GEPA and EDGAR. An LEA must use IDEA recovery funds only for excess costs of providing special education and related services to children with disabilities, except where IDEA specifically provides otherwise.

  4. Timeline • April 2009-50% recovery funds to LEAs • October 2009-other 50% recovery funds to LEAs

  5. During this time, we’ll receive… • September/October 2009-Initial regular grant allocation to LEAs • October/November 2009- remaining regular grant allocation to LEAs

  6. How much? For recovery funds 611 (ages 3-21)…(PRC 144) • $157,205,020 allocated in April 2009 !!! • $157,205,020 to be allocated in October 2009!!! • Chart of Accounts mirrors PRC 060

  7. How much? For recovery funds 619 (preschool)…(PRC 145) • $6,035,571 allocated in April 2009!!! • $6,035,571 to be allocated in October 2009!!! • Chart of Accounts mirrors PRC 049

  8. When to use… • Recovery funds allocated in April 2009 can be used during the 08-09 fiscal year. All ARRA IDEA funds must be obligated by September 30, 2011.

  9. Reduction in Maintenance of Effort (MOE)* The following requirements must be met for an LEA to consider reducing MOE: • The LEA has a performance determination of “Meets Requirements”. • The SEA has not taken responsibility for providing FAPE in the LEA. • The LEA is not identified as having significant disproportionality.

  10. How much? For 09-10 Allocation… For potential MOE reduction, an LEA’s FY 2009 allocation includes their 611 regular allocation plus their 611 recovery funds.

  11. Reduction in Maintenance of Effort (MOE) An LEA may be able to reduce the level of state and local expenditures otherwise required by the IDEA LEA maintenance of effort (MOE) requirements. Generally, under section 613(a)(2)(C), in any fiscal year that an LEA’s IDEA allocation (611 and 611 ARRA) exceeds the amount the LEA received in the previous year, under certain circumstances*, the LEA may reduce the level of state and local expenditures by up to 50 percent of the amount of the increase, as long as the LEA uses those freed-up local funds for activities that could be supported under the ESEA. The amount and use of these funds must be tracked.

  12. Reduction in Maintenance of Effort (MOE) If an LEA takes advantage of this provision, the required MOE for future years is reduced consistent with the reduction it took, unless the LEA increases the amount of its state and local expenditures on its own.

  13. Coordinated Early Intervening Services(CEIS) LEAs without significant disproportionality may use up to and including 15 percent of the total LEA IDEA federal funds for FY 2009-10 to implement CEIS. Although the calculation is based on the total of all four awards (611 funds, 611 recovery funds, 619 funds and 619 recovery funds), if an LEA elects to use IDEA funding for CEIS, the funds will be transferred from PRC 60 to PRC 70.

  14. Use of CEIS Funds • Funds transferred to PRC 70 must be used to provide services for students not currently receiving special education or related services, but who need additional academic and behavioral supports to succeed in a general education environment.

  15. Reporting Requirements of CEIS • LEAs implementing CEIS must report the number of children who received CEIS and the number who subsequently received special education and related services under Part B during the preceding two-year period.

  16. Connection between MOE and CEIS • If the LEA meets the three requirements in slide 9 and chooses to participate in CEIS during FY 2009-10, the LEA may elect to reduce their MOE by up to 50% of the increase in funding they receive under IDEA PRC 060 and ARRA PRC 144 funds, less the amount the LEA elects to transfer to PRC 070.

  17. Use of ARRA IDEA funds • If an LEA requests that funds be transferred to PRC 70 to provide CEIS, ARRA IDEA funds could be used to fill-in the resulting deficit in PRC 60.

  18. Recovery Packaging Issues to be addressed: • Application required for remaining 50% of ARRA IDEA funds • Tracking how the funds are spent and the results of those expenditures

  19. QUESTIONS??????

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