The American Recovery and Reinvestment Act:

1. The American Recovery and Reinvestment Act: SAVING AND CREATING JOBS AND IMPROVING OUTCOMES FOR INDIVIDUALS WITH SIGNIFICANT DISABILITIES U.S. Department of Education Rehabilitation Services Administration June 2009

2. Guiding Principles • Spend quickly to save and create jobs. • Ensure transparency and accountability. • Invest one-time ARRA funds thoughtfully to minimize the “funding cliff.” 2

3. Spend Funds Rapidly and Effectively • Balance need to spend funds quickly with careful planning to bring about effective reforms. • Maximize short-term investments with lasting results. • Minimize commitments that cannot be sustained when ARRA funds expire. • Align coherent improvement strategies with the core reform goals. • Spend funds in accordance with program requirements.

4. Accountability and Transparency • All ARRA funds must be tracked separately for reporting purposes. • Reporting template is being developed for use by grantees to capture required information. • Transparency allows opportunity to quantify/define goals and mobilize support for improving IL outcomes or expanding IL services.

5. IL Programs Receiving ARRA Funds • Centers for Independent Living (CILs) Program (IL Part C): $87.5 million • Independent Living - $52.5 million or 100 percent of IL ARRA formula grant funds were made available on April 1, 2009: • State IL Services Program (IL State Grants or Part B) - $18.2 million • IL Services for Older Individuals Who Are Blind (OIB) - $34 .3 million 5

6. IL ARRA Funds Set-Asides • The Department has reserved funds from all three ARRA IL programs, including the CIL program, for the required set-aside under section 21(b) of the Rehabilitation Act for capacity building activities of minority entities and Indian tribes. • The Department has also reserved ARRA CIL program funds for training and technical assistance as required by section 721(b) of the Rehabilitation Act. 6

7. Topics: ARRA CILs Program Funds Awarding ARRA CILs Program Funds Uses of ARRA CILs Program Funds Fiscal Issues Accountability Principles Additional Information Question and Answers

8. Awarding ARRA CILs Program Funds The ARRA CILs program funds and the regular 2009 CILs program funds have been allocated among States using the population-based funding formula described in Section 721(c) of the Rehabilitation Act. Together, these awards constitute a State’s total FY 2009 allocation for the CILs program.

9. Awarding ARRA CILs Program Funds (cont’d) As in past years, the Department plans to award the regular FY 2009 CILs program funds to existing centers by September 30, 2009. The Department plans to award any ARRA CILs program funds that will be distributed through a competition to establish new centers by December 31, 2009.

10. Awarding ARRA CILs Program Funds (cont’d): Order of Priorities The Commissioner of the Rehabilitation Services Administration (RSA) is required to distribute the total FY 2009 allocation for the CILs program for each State based on the order of priorities set forth in the Rehabilitation Act and program regulations:

11. Awarding ARRA CILs Program Funds (cont’d): Order of Priorities Accordingly, RSA will: 1. provide existing centers that comply with the standards and assurances in Section 725 of the Rehabilitation Act the level of funding each center received for the previous fiscal year. 2. provide those existing centers with a cost-of-living increase. The FY 2009 COLA is 3.5%.

12. Awarding ARRA CILs Program Funds (cont’d): Order of Priorities 3. fund new centers, selected on a competitive basis, that comply with the standards and assurances in Section 725 of the Rehabilitation Act, if sufficient funds are available and there is a region in the State that is unserved or underserved, consistent with the approved State Plan for Independent Living (SPIL); and 4. if there are insufficient funds for a new center in a State, award any remaining funds to existing centers consistent with the SPIL, or reallocate the funds to other States.

13. Awarding ARRA CILs Program Funds (cont’d): RSA, SILC and DSU Discussions To inform RSA’s determination of whether to establish new centers in a State or use the ARRA CILs program funds to provide supplemental funding to existing centers, RSA will contact each designated state unit (DSU) and Statewide Independent Living Council (SILC) to do the following:

14. Awarding ARRA CILs Program Funds (cont’d): RSA, SILC and DSU Discussion Topics 1. review the information in the current SPIL, verify the amount of Part C funds available to the State once existing centers receive their required minimum awards, and reach a common understanding on how the current SPIL addresses the uses of the State’s total FY 2009 allocation for the CILs Program; 2. discuss the options, including strengths and limitations of each, that the DSU and the SILC have considered for uses of these funds; 14

15. Awarding ARRA CILs Program Funds (cont’d): RSA, SILC and DSU Discussion Topics 3. discuss whether or not the increase in the allocation to the State is sufficient to establish a new center or centers and how to address the independent living needs of individuals with significant disabilities living in unserved or underserved regions in the State; 4. discuss the State’s options for sustaining any new centers after the ARRA funds expire; 15

16. Awarding ARRA CILs Program Funds (cont’d): RSA, SILC and DSU Discussion Topics 5. provide guidance on whether, depending upon the decisions made regarding the proposed use of the funds, the SPIL needs to be amended; and 6. determine the next steps for awarding ARRA CILs program funds to new or existing centers in the State, including plans for RSA to hold a competition for any States in which new centers will be established. 16

17. Awarding ARRA CILs Program Funds (cont’d): SPIL Implications • Due to the significant one-time increase in funding for the CIL program this year, the DSU and SILC may not have anticipated this level of funding when the SPIL was developed. • As a result, some States may need to change their SPILs to account for this increase. 17

18. Awarding ARRA CILs Program Funds (cont’d): SPIL Implications • If the proposed changes will result in a significant and relevant change to the SPIL’s: • information or assurances, • administration or operation, or the • organization, policies, or operations of the State agency that received the grant (if the change materially affects the information or assurances in the SPIL), the DSU and SILC will need to amend the SPIL. This includes conducting public hearings as required by the IL program regulations and the Education Department General Administrative Regulations (EDGAR). 18

19. Awarding ARRA CILs Program Funds (cont’d): SPIL Implications • Because the SPIL governs the use of funds authorized by both Parts B and C of Title VII of the Rehabilitation Act, the DSU and the SILC in discussions with stakeholders should consider whether the SPIL should be revised to reflect changes in the State’s priorities resulting from the significant increase in ARRA funds for the IL State Grants program as well. 19

20. Awarding ARRA CILs Program Funds (cont’d): SPIL Implications • If a SPIL amendment is required, the Department cannot award ARRA CILs program funds for new or existing centers until the SPIL amendment is approved. • In the event that an amendment to the SPIL is necessary, RSA will provide a timely review and approval of the amendment. 20

21. Uses of ARRA CILs Program Funds • All ARRA CILs program funds must be used consistently with the current statutory and regulatory requirements for the program, as well as applicable requirements in the General Education Provisions Act and EDGAR. 21

22. Uses of ARRA CIL Program Funds (cont’d) • Grantees under the CILs program should consider how they can use the additional funds to: • improve and expand the types of IL services provided; • serve additional consumers, especially populations that are unserved or underserved; • increase their capacity to provide IL services; and • maximize employment opportunities and economic benefits to individuals with significant disabilities consistent with the goals and objectives established by individual consumers. 22

23. Uses of ARRA CILs Program Funds (cont’d) • The ARRA CILs program funds constitute a large one-time increase that offers a unique opportunity for all centers to improve IL outcomes. Generally, these funds should be used by centers for short-term investments with the potential for long-term benefits, rather than for commitments that a center may not be able to sustain once ARRA CILs program funds are expended. Some examples of possible uses include: 23

24. Uses of ARRA CILs Program Funds (cont’d) • Designing or identifying and providing services that may be extended at low cost beyond 2011 to additional individuals who wish to transition from nursing homes to their communities; • Creating more efficient and effective ways of increasing IL services to students with disabilities transitioning from school to employment and independent living; • Building long-term capacity by improving the technological core of the center, including, but not limited to, purchasing equipment, improving electronic network connections, and obtaining software in order to better serve consumers; 24

25. Uses of ARRA CILs Program Funds (cont’d) • Training current staff in effective ways of providing assistive technology to consumers; • Expanding information and referral and advocacy services to address the needs of consumers who were laid off and may need assistance replacing services or assistive technology previously provided through an employer; • Providing professional development opportunities that have both short-term and long-term benefits to staff of centers; and • Conducting resource development activities to obtain funding from sources other than chapter 1 of title VII of the Rehabilitation Act. 25

26. Fiscal Issues • In accordance with the goals of the ARRA, the funds received by centers should be obligated expeditiously and with appropriate accountability. The ARRA funds the centers receive will remain available for obligation until September 30, 2011, which includes one year of carry-over in accordance with section 19 of the Rehabilitation Act. 26

27. Fiscal Issues (cont’d) • The ARRA provides a significant one-time increase in funding that could permit the establishment of new centers in areas that are unserved or underserved within States. These centers, like existing centers, will be eligible to receive CILs program funds in subsequent fiscal years, as long as they comply with the standards and assurances in section 725 of the Rehabilitation Act. 27

28. Fiscal Issues (cont’d) • Assuming regular federal appropriations for the CILs program remain constant, existing centers, and any new centers, will receive reduced federal funding once all ARRA CILs program funds are expended. • In the short term, in order to minimize the impact of funding new centers on the level of federal funding available in the future for existing centers, the Commissioner may use FY 2009 appropriations to fund the first two years of a grant to any new center. 28

29. Accountability Principles • ARRA requires that recipients of funds made available under that Act separately account for and report on how those funds are spent. Further information on reporting instructions will be provided online at www.FederalReporting.gov. • President Obama and the Secretary of Education Duncan are committed to ensuring that ARRA funds are spent with an unprecedented level of transparency and accountability. ARRA CILs program expenditures will be reported on the Recovery.gov Web site. 29

30. Additional Information • The Department will provide more guidance and updates as additional information becomes available regarding the details of the ARRA CILs program funds. • The Department will also provide further information on the government-wide data collection and reporting requirements as this information becomes available. • If you have any questions or concerns, please email them to RSARecoveryActComments@ed.gov. 30