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American Recovery and Reinvestment Act of 2009

American Recovery and Reinvestment Act of 2009. IDEA Recovery Funds for Services to Children and Youths with Disabilities. Goals of the ARRA. Spend funds quickly to save and create jobs Improve student achievement through school improvement and reform

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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. Goals of the ARRA • Spend funds quickly to save and create jobs • Improve student achievement through school improvement and reform • Ensure transparency, reporting, and accountability • Invest one-time ARRA funds thoughtfully to minimize the “funding cliff”.

  3. Timeline • March 2009-50% funds to SEAs • October 2009-other 50% funds to SEAs

  4. To date… • Allocation amount • Budget report • Expenditure report • Notification of grant award Mini application with regular IDEA Regular award August/September

  5. How much? For 09-10 Allocation… Estimates were received on March, 24, 2009. The state application will be submitted May 11, 2009 to qualify for funds. These funds will follow normal application procedures.

  6. When to use… • Funds can be used during the 08-09 fiscal year, however, for the purposes of calculating MOE, CEIS and proportionate share, the total amount of stimulus money will be applied for 2009-2010.

  7. Uses… Examples: Obtain state-of-the art assistive technology devices and provide training in their use to enhance access to the general curriculum for students with disabilities Provide intensive district-wide professional development for special education and regular education teachers that focuses on scaling-up, through replication, proven and innovative evidence-based school-wide strategies in reading, math, writing and science, and positive behavioral supports to improve outcomes for students disabilities.

  8. Uses… Examples: Develop or expand the capacity to collect and use data to improve teaching and learning Expand the availability and range of inclusive placement options for preschoolers with disabilities by developing the capacity of public and private preschool programs to serve these children Hire transition coordinators to work with employers in the community to develop job placements for youths with disabilities

  9. Updated Guidance GUIDANCE Funds for Part B of the Individuals with Disabilities Education Act Made Available Under The American Recovery and Reinvestment Act of 2009 April, 2009 Revised April 13, 2009 U.S. Department of Education Office of Special Education and Rehabilitative Services

  10. MOE, CEIS, and Proportionate Share The MOE provision will be calculated using the stimulus $ and any increase in the 611 or 619 for 09-10. The CEIS will be calculated on the total stimulus plus base, population, and poverty (09-10) parts of the 611 and 619 awards. The proportionate share will be calculated on the total stimulus plus base, population, and poverty (09-10) parts of the 611 award.

  11. Stimulus Packaging • There will be a “mini application” • There will be a unique revenue code • There will be separate subfund • There will be a separate CFDA number

  12. Data Tracking-Including but not limited to… • Use of “freed-up” funds • Coding of ARRA expenditures • New project component code (do not use CA or CG) • New funding codes (do not used 203 or 205) Additional guidance will be provided by the OSEP on tracking stimulus funds.

  13. Answering Your Questions…. • 1) Will the OSEP waive the provision that LEAs need to "meet requirements" in order to take advantage of the 50% flexibility for ARRA? • Argument: Levying this provision is a fiscal penalty that further destabilizes existing programs and make it less likely that LEAs will be able to "meet requirements" in the future. • Per the discussion with OSEP program officials on May 4, 2009, the answer to this question is “no”. This information is shared in the guidance dated April 13, 2009. Please note questions D-7 through D-10.

  14. Answering Your Questions…. • 2)Will the "supplement, not supplant" provision apply if it is not certain that local and or state funds will be available in the upcoming fiscal year to fund special education related positions and services? • Argument: With the economic downturn, it is unclear if state and local funds used to pay for special education related salaries and services currently, will be available in 09-10. If local and state funds are decreasing, an LEA would not be supplanting if it uses IDEA funds to cover these shortages. • Per the discussion with program officials on May 4, 2009, the answer to this question is “yes”, using these funds to replace local or state funds in anticipation of economic downturn would be considered supplanting. However, as long as an LEA “meets requirements”, it will be able to use the 50% MOE flexibility. Additionally, the LEA, as long as it “meets requirements” could further reduce it MOE by applying the exception to maintenance of effort established by §300.204 of the IDEA 2004 regulations.

  15. Answering Your Questions…. • 3) As long as the LEA is meeting MOE, would it be considered supplanting if the LEA used its IDEA funds to cover shortages? • Argument: The guidance document question C-6 seems to indicate that this is allowable. • Per the discussion with program officials on May 4, 2009, the answer to this question is “yes”. Officials indicate that the IDEA 2004 program regulations regarding “supplementing, not supplanting” apply to ARRA funds. They suggest reading sections §300.163 through §300.164 for full information. The regulation states in part: “Federal funds must be used to supplement, not supplant Federal, state, and local funds including funds that are not under the direct control of the SEA or LEAs expended for special education and related services provided to children with disabilities under Part B of the Act, and in no case to supplant those Federal, state and local funds.” • Additionally, OSEP officials indicate that the historical footnote of “particular cost test” does not apply to ARRA or regular IDEA funds, because that is no longer a part of the IDEA law.

  16. Questions/Challenges…. We continue to see states, LEAs, and other groups ask questions of the program office in reference to changing program regulations. To date, the program office asserts that all IDEA 2004 program rules apply to the administration of ARRA funds. Should there be any change in policy, the OEC will notify our LEAs.

  17. Special Notes Program officials ask that we refer to the April 13, 2009 Guidance. Specifically sections C and D Be reminded that the “freed up” funds must be allocated to services covered by ESEA Be reminded that the 15% for the CEIS provision must follow CEIS guidelines; that is, LEAs must submit plans for CEIS (mandatory or voluntary) “Freed up” funds must be tracked separately. “Setting up a unique function code would not be the appropriate method for tracking because it won’t be meaningful to the LEAs in reporting their expenditures” (Project Accounting, May 21, 2009), therefore in your “mini application” LEAs will have to document these amounts for OEC tracking.

  18. Special Notes LEAs can elect not to budget or expend the first half of their ARRA funds, however, please send the signed notification of grant award. Review of the budgets will start next week, however, if you need to make changes based on the information discussed today, call me at 803-734-8788. Time Distribution: Much emphasis was placed on time distribution in Washington, and it was heavily indicated that this would be the focus of review of ARRA expenditures. Please make sure that anyone “costed out” to the ARRA funds have time reports to indicate this.

  19. Special Update There will be increased oversight in the uses of all federal funds in general but ARRA funds in particular. Multiple levels of oversight may include reviews from the following entities: • Recovery Accountability and Transparency Board (RAT) • General Accountability Office (GAO) • Office of Inspector General Audit/Investigation • A-133 Auditor • ED Program Monitoring • State “Pass Through” Monitoring

  20. Special Update OEC has learned that South Carolina is on course for an oversight review from the Office of Inspector General, per their presentation at the 11th Annual Federal Education Grants Management Forum, May 6, 2009. Per their powerpoint presentation, South Carolina is being considered for a first round review of states.

  21. Special Notes So…Document! Document! Document! Make sure all IDEA ARRA budgets and expenditures are aligned with IDEA program requirements. Remember, ARRA is the funding law that provides a one-time allocation to the IDEA program. We will always defer to the federal law when there is a question regarding expenditure of IDEA funds-ARRA or regular.

  22. More to come…. As the Office of Exceptional Children received additional guidance tracking and accountability of the ARRA funds, we’ll pass this information on.

  23. Questions??? Dr. Vanessa Nelson-Reed, Education Associate for Fiscal Administration, Office of Exceptional Children, 803-734-8788, vnreed@ed.sc.gov

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