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Welcome and Introductions

Welcome and Introductions. Today’s Webinar is brought to you by IASB, IASBO, SAI and the UEN. Today’s presenters are Jeff Berger, IA. Dept. of Education CFO/Federal Legislative Liaison and Drew Bracken, Attorney, Ahlers Law Firm.

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Welcome and Introductions

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  1. Welcome and Introductions Today’s Webinar is brought to you by IASB, IASBO, SAI and the UEN. Today’s presenters are Jeff Berger, IA. Dept. of Education CFO/Federal Legislative Liaison and Drew Bracken, Attorney, Ahlers Law Firm. Also present today are Jackie Black, IASB Education Finance Director, Mary Gannon, IASB Attorney and Emily Piper, IASB Legislative Consultant

  2. Education Jobs Act 2010 September 8, 2010 Guidance, Allocations, and Q & A

  3. Basic Information • $10 billion nationwide in the 2010-11 school year • Purpose: To repair cuts to educational and related services for early childhood, elementary, and secondary education at the building level • State allocations based on population • Iowa share: $96,409,048

  4. Basic Information • Process streamlined due to previously-approved ARRA SFSF Phase I and Phase II applications. • No need for additional LEA applications or assurances beyond what was done for ARRA. • Application to USDE was approved late last week.

  5. Allocations • Iowa will use the state aid formula to calculate amount of funding per district to be distributed in FY11 • Go to DE home page/A-Z programs/Ed Jobs for per district allocations • Payments will start in September if the USDE makes the funding available in time to pay. These payments will occur concurrent to the state aid payments. All funds will be disbursed to districts in FY11.

  6. Allocations • Districts will receive a minimum of four payments on the state aid schedule in FY11: • Regular State Aid • ARRA SFSF Education Stabilization • ARRA SFSF Govt. Services Stabilization (new in FY11) • Ed Jobs (new in FY11) • ARRA allocations on the DE website as well • ARRA funds are state aid replacement. Ed Jobs is not, it is new miscellaneous federal income.

  7. Allocations • Federal statute pertaining to interest earned applies to Ed Jobs as well • Per 34 CFR Subtitle A (7-1-03 Edition) Section 80.21(i) Authority: 20 U.S.C. 3474; OMB Circular A-102, interest earned on Federal advances deposited in interest bearing accounts shall be remitted annually to the US Department of Health and Human Services, Payment Management System, Rockville, MD 20852. Please note the CFDA number to which the interest earned applies. On each CFDA number, if the amount of interest earned is $100 or less annually, that amount may be retained by the recipient for administrative expense. • Period of obligation: August 10, 2010 through September 30, 2012.

  8. Allocations • Local account codes for funds are as follows: • Ed Jobs: Source Code 4041 (CFDA 84.410) • ARRA SFSF Education: Source Code 4034 (CFDA 84.394) • ARRA SFSF Govt. Services: Source Code 4039 (CFDA 84.397)

  9. Uses of Funds • Permissive Uses • Ed Jobs authorizes an LEA to use Ed Jobs funds for compensation and benefits and other expenses, such as support services, necessary to retain existing employees, to recall or rehire former employees, and to hire new employees, in order to provide early childhood, elementary, or secondary educational and related services at the school building level. (Emphasis Iowa DE). • The intent of the statute was to repair cuts to building-level staff.

  10. Prohibited Uses • Ed Jobs prohibits an LEA from using Ed Jobs funds for: • General Administrative expenses, including district- and regional-level personnel. • Debt retirement or rainy-day funds • Unemployment benefits • Program or other expenditures other than personnel • Contractual services by individuals who are not employees of the school district

  11. Reporting • ARRA Section 1512 reporting requirements apply to this funding as well. • Separate accounting mandatory • Iowa will use current ARRA reporting system to track uses and expenditures of these funds for the duration of the funding. • First quarterly report either September or December 2010.

  12. Q & A • What about the MOE requirement on the State? • Iowa meets the statutory MOE requirements of this fund, which are slightly different than ARRA. • How will the state set-aside affect district funding levels? • Iowa will capture 0.2% of the maximum 2% set-aside. This amount was already removed when calculating district allocations.

  13. Q & A • Must we spend all of the funds in FY11? • No, school districts have the ability to carry this funding forward and spend through September 30, 2012. The intent, however, was to repair or maintain jobs as quickly as possible. • Can funds be used to meet previously unmet pension fund liabilities? • Not for prior years. May do this for obligations for 2010-11 and, if carrying forward money, 2011-12.

  14. Q & A • May an LEA use Ed Jobs funds for modernizing, renovating or repairing facilities? • No • May an LEA use Ed Jobs funds to supplement or restore “rainy day” funds or to pay down past debt? • No

  15. Q & A • Can we pay a supervisor of building-level custodians using these funds? • If the person is a district-level supervisor, no. If the person is split between district-level duties and building-level duties, the portion that is building-level could be covered with these funds. • Can we fund staff in current positions rather than hiring new? • Yes

  16. Q & A • We have a private residential facility within our district boundaries and their students are included in our enrollment. Are they entitled to funds? • No, unless they are considered school district employees. If they are contracted, they do not qualify for these funds. The scope of use of these funds is not as broad as ARRA.

  17. Q & A Must we bargain this money? The simple answer is no, but the real answer is “it depends.” The district gets determine how it will use these funds. However, if the uses of the funds slide into areas that are bargained (e.g., unfunded salary increases, distribution using the bargained salary schedule, benefit contributions, and others), then bargaining may be necessary.

  18. Additional Information Jeff Berger CFO – Iowa DE 400 E. 14th St. Des Moines, IA 50319 Work: (515) 281-3968 Cell: (515) 250-3728 jeff.berger@iowa.gov

  19. Additional Information Drew Bracken, Attorney Ahlers & Cooney, P.C (515) 243-7611

  20. IASB Contacts: Jackie Black, IASB Education Finance Director, jblack@ia-sb.org Mary Gannon, IASB Attorney, mgannon@ia-sb.org Emily Piper, IASB Legislative Consultant, emily@ialobbyresources.com (800) 795-4272

  21. Additional Contacts: • Jim Scharff, IASBO Executive Director http://www.iowa-asbo.org/ Phone: (515) 294-9468 • Dan Smith, SAI Executive Director http://www.sai-iowa.org/ Phone: (515) 267-1115 • Lew Finch, UEN Executive Director http://www.uen-ia.org/

  22. Additional Resources US Dept. of Educationhttp://www2.ed.gov/programs/educationjobsfund/applicant.html IAS Dept. of Educationhttp://www.ia-sb.org/WorkArea/showcontent.aspx?id=9768 IASB http://www.ia-sb.org/Finance.aspx?id=9682 NSBA http://www.nsba.org/MainMenu/Advocacy/2010-Action-Plan/Part-One/Ed-Jobs-Fund.aspx

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