The American Recovery and Reinvestment Act

1. The American Recovery and Reinvestment Act

2. Purpose of PowerPoint Presentation • Provide an overview of the education provisions of the American Recovery & Reinvestment Act (ARRA). • Identify the ARRA funding going to Kansas school districts. • Explain specific program requirements to facilitate planning. • Explain anticipated accountability and reporting requirements for ARRA funds.

3. KSDE PowerPoint Presentation • Overview of Federal ARRA program • Overview of Kansas ARRA program • KSDE programs: • State Fiscal Stabilization Fund • Title I Grants to LEAs • Title I School Improvement Grants • Special Education – Part B Grants and Early Childhood • Title II, Part D – Enhancing Technology • Education for Homeless • School Lunch Equipment • AmeriCorps • Title I Part D Subpart 2 Delinquent • Qualified School Construction Bonds • Qualified Zone Academy Bonds

4. Federal Overview of ARRA

5. President Barack ObamaFebruary 24, 2009 “In a global economy where the most valuable skill you can sell is your knowledge, a good education is no longer just a pathway to opportunity – it is a pre-requisite. The countries that out-teach us today will out-compete us tomorrow.”

6. American Recovery and Reinvestment Act $488 Million for KS Schools On February 17, 2009, President Obama signed the ARRA and stated: “These funds provide us an unprecedented opportunity to boost the economy in the short run while increasing student achievement in the long-term.”

7. Advance Core Reforms: Assurances

8. Arne Duncan United States Secretary of Education “These four commitments will help ensure outstanding teachers in America’s schools, arm educators with the tools and data needed to determine what does and doesn’t work in our nation’s classrooms, align curricula and assessments with rigorous standards that prepare young people for college and careers, and transform our lowest-performing schools.”

9. Guiding Principles Advance Effective Reforms Thoughtfully Invest One-time Funds Ensure Transparency and Accountability Spend Quickly to Save and Create Jobs

10. Four Essential Areas of Reform • Teacher effectiveness and ensuring that all schools have highly qualified teachers • Higher standards and rigorous assessments that will improve both teaching and learning • Intensive support, effective interventions, and improved achievement in schools that need it the most • Better information to educators and the public, to address the individual needs of students and improve teacher performance

11. Data Metrics* • Specific metrics on the four assurances • Transparency on state progress toward reforms • Public comment in the Federal Register • Phase two stabilization funds - states must provide plan for collecting and reporting these data *Data metrics means specific measurements of student and school improvement.

12. Data Metrics • Teacher effectiveness and ensuring that all schools have highly qualified teachers • Number and % of teachers in the highest-poverty and lowest-poverty schools in the state who are highly qualified • Number and % of teachers and principals rated at each performance level in each LEA’s teacher evaluation system • Number and % of LEA teacher and principal evaluation systems that require evidence of student achievement outcomes

13. Arne Duncan “Data systems to me are at the heart of this reform effort…we need comprehensive data systems that do three things: Track students throughout their educational trajectory. Track students back to teachers so we can really shine a spotlight on those teachers who are doing a phenomenal job of driving student achievement. Track teachers back to their schools of education so..we’ll understand which schools…are adding value with their graduates.”

14. Data Metrics • Higher standards and rigorous assessments that will improve both teaching and learning • Most recent NAEP reading and math scores • Steps to improve assessments • Valid reliable measures for ELLs and students with disabilities in math and English Language Arts (ELA) • Percent of ELLs and students with disabilities tested in math and ELA • Number and percent of students who graduate and complete one year of college

15. Data Metrics • Intensive support, effective interventions, and improved achievement in schools that need it the most • Number of schools in restructuring status that demonstrated substantial gains in achievement, closed, or consolidated – last 3 years • Number of schools in the bottom 5% of those schools that demonstrated substantial gains in student achievement, closed or consolidated - last 3 years • Number and percent of schools in restructuring status that have made progress in math and reading in last year • Charter school caps, number operating, number closed

16. Data Metrics • Better information to educators and the public, to address the individual needs of students and improve teacher performance • Statewide data system including elements of America COMPETES Act • All teachers in math and reading in tested grades receiving timely data and estimates of individual teacher impact on student achievement to inform instruction

17. Potential Uses of ARRA Funds to Drive Long-Term Educational Reform and Improvement • Will the proposed use of ARRA funds: • Drive results for students? • Increase capacity? • Accelerate reform? • Avoid the “cliff*” and improve productivity? • Track results? * Cliff refers to the one time appropriation of funds.

18. Short-term Investments that Produce Lasting Results: Avoid “The Cliff” (loss of funds in two years) • Maximize short-term investments with lasting results for: • students • teacher, school, and district capacity for improvement • Minimize unsustainable ongoing commitments • Integrate coherent improvement strategies that are aligned with the core reform goals

19. Competitive ARRA Grants • Incentive Grants • “Race to the Top” grants to states • “Invest in What Works and Innovation” grants to districts and non profit groups • Teacher Quality Enhancement (Equity) • Teacher and Principal Incentives • Statewide Data Systems

20. SFSF Incentive Fund: “Race to the Top” and “Invest in What Works and Innovation” • “Race to the Top”- $4.35 billion competitive grants to States making most progress toward the assurances • “Investing in What Works and Innovation” - $650 million competitive grants to LEAs and non-profits that have made significant gains in closing achievement gaps to be models of best practices • 2010 grant awards will be made in two rounds - late Fall 2009, Summer 2010

21. General Information The President has made it clear that every taxpayer dollar spent on our economic recovery must be subject to unprecedented levels of transparency and accountability. He has identified five critical objectives for Federal agencies, to ensure that: • Recovery funds are awarded and distributed in a prompt, fair and reasonable manner; • The receipts and uses of all recovery funds are transparent to the public; • Recovery funds are used for authorized purposes and every step is taken to prevent instances of fraud, waste, error and abuse; • Projects funded under the recovery legislation avoid unnecessary delays and cost overruns; and • Programs meet specific goals and targets, and contribute to improved performance on broad economic indicators.

22. Historic, One-time Investment • Over 100 billion education investment • Historic opportunity to stimulate economy and improve education • Success depends on leadership, judgment, coordination, and communication

23. Accountability and Transparency • All ARRA funds must be tracked separately • Quarterly reports on both financial information and how funds are being used • Estimated number of jobs created • Subcontracts and sub-grants required to comply with the Federal Funding Accountability and Transparency Act • Reporting template being developed for use by States to capture required information • Transparency allows opportunity to quantify/define goals and mobilize support for improving results for all students

25. More Information American Recovery and Reinvestment Act (ARRA) Resources and Guidance: • U.S. Department of Education Recovery Act Website: http://www.ed.gov/recovery • Federal Recovery Act Website: www.recovery.gov

26. Kansas Overview of ARRA

27. Where is Kansas Recovery Money Going?

28. ARRA Money for Kansas *Total allocation is provided to USD’s as one amount. It is recommended that the dollars be spent equally over the 27 months; it is a district determination. (Title I, Part D, Subpart 2 funds included in $70,868,000.)

29. ARRA Money for Kansas The Qualified School Construction Bond Program is a new tax credit program created by the American Recovery and Reinvestment Act (ARRA) and provides tax credits, in lieu of interest, to lenders who issue bonds to eligible school districts. The Qualified Zone Academy Bond (QZAB) program allows school districts with low-income populations to save on interest costs associated with financing school renovations. The federal government covers all of the interest in the form of tax credits on these bonds. *These are total amounts statewide which schools could issue in lease/purchase and on new construction projects. The savings to the school would be the interest they would not have to pay for these projects.

30. Recommendations for Use of Funds • Extend the use of funds across the allowable number of months • Title I: Extend across the allowable 27 months • Follow the rules for supplement not supplant • Follow the rules for maintenance of effort

31. Recommendations for Programs and Services • Extending time for student learning • Longer school year • Summer school • Serving more students • Adding more Title I schools • Providing more intense interventions • Expanding MTSS • Offering job –embedded professional development • Extending services • Offering Title I preschool

32. Accountability and Transparency Kansas schools must ensure: • All ARRA funds must be tracked separately • Quarterly reports on both financial information and how funds are being used • Estimated number of jobs created • Subcontracts and sub-grants required to comply with the Federal Funding Accountability and Transparency Act • Reporting template being developed for use by States to capture required information

33. KSDE and Kansas Recovery Act Website • KSDE Recovery Act Website: http://www.ksde.org • State of Kansas Website: www.governor.ks.gov/Recovery

34. Kansas is Racing to the Top!

35. State Fiscal Stabilization Fund

36. State Fiscal Stabilization Fund (SFSF) SFSF Funds: These funds are being used to set the base state aid per pupil • Kansas 2009-10: $138,700,000 ($4,218 BSAPP) • Kansas 2010-11: $138,700,000 No additional funding under ARRA is available for 2011-12 or anytime after 2010-2011.

37. State Fiscal Stabilization Fund (SFSF) Application required to be submitted by school districts: The application from school districts must contain assurances in the General Education Provisions Act. One assurance is the LEA must use fiscal control and fund accounting procedures that will ensure proper disbursement of, and accounting for, the funds placed in the base state aid per pupil amount.

38. State Fiscal Stabilization Fund (SFSF) Stabilization Funds are Considered Federal Funds: State funding formulae are used solely to determine the amount of Education Stabilization funds that each LEA will receive. The Education Stabilization funds are Federal Funds and Federal requirements govern their uses.

39. State Fiscal Stabilization Fund Uses of funds: An LEA is authorized to use funds under the following Federal education acts: • The Elementary and Secondary Education Act of 1965 (ESEA); • The Individuals with Disabilities Education Act (IDEA); • The Adult Education and Family Literacy Act (AEFLA); or • The Carl D. Perkins Career and Technical Education Act of 2006 (Perkins Act).

40. State Fiscal Stabilization Fund Uses of funds (cont’d): Among other things, the Education Stabilization funds may be used for activities such as: • paying the salaries of administrators, teachers and support staff; • purchasing textbooks, computers, and other equipment; • supporting programs designed to address the educational needs of children at risk of academic failure, limited English proficient students, children with disabilities, and gifted students; and • meeting the general expenses of the LEA.

41. State Fiscal Stabilization Fund Uses of funds (cont’d): The U.S. Department of Education encourages LEAs to use available Education Stabilization resources in ways most likely to assist the State in making progress in areas related to the four education reform assurances in the State’s Stabilization application and to lead to improve results for students, long-term gains in school system capacity, and increased efficiency and effectiveness.

42. State Fiscal Stabilization Fund Uses of funds (cont’d): Examples of activities that an LEA might support with its funds in order to advance reform include: • An LEA has considerable flexibility in using Education Stabilization funds to support early childhood programs and services as authorized activities under the ESEA. • If a school district uses the money to transfer to a special fund, it will be necessary to account for the expenditures made out of the special fund for costs which are allowable under ARRA.

43. State Fiscal Stabilization Fund Timeframe for spending/Processing the Federal Stabilization Funds: • A State must have an effective system for managing the flow of funds that ensures that entities are able to draw down funds as needed to pay program costs but that also minimizes the time that elapses between the transfer of the funds and their disbursement. • It is anticipated KSDE will be distributing the stabilization funds on September 1, 2009. In order to comply with the Cash Management Act, schools will need to spend the ARRA funds as soon as possible after that date. Further guidance is being developed on this requirement.

44. State Fiscal Stabilization Fund Accountability Requirements: Recipients of ARRA funds must maintain reliable documentation of all ARRA expenditures. Within the general fund, the school district should have separate accounting of these expenditures.

45. State Fiscal Stabilization Fund State and USD Reporting requirements: For each year of the Stabilization program, the State must submit a report that describes: • The use of funds within the State; • How the State distributed the funds it received; • The number of jobs that the Governor estimates were saved or created; • Tax increases that the Governor estimates were averted

46. State Fiscal Stabilization Fund State and USD Reporting requirements (cont’d): The U.S. Department of Education will develop a common reporting form for States. Quarterly reports from School Districts showing a line item breakdown of expenditures will be required. The anticipated dates to submit the reports will be: • October 5, 2009 • January 5, 2010 • April 5, 2010 • July 5, 2010

47. State Fiscal Stabilization Fund Assurances by the State to Meet the Four Reform Goals: • The State’s progress in reducing inequities in the distribution of highly qualified teachers; implementing a State longitudinal data system; school improvement programs; and developing and implementing valid and reliable assessments for limited English proficient students and children with disabilities are examples contained in the four reform goals. • In order to qualify for the stabilization funds, the state must work toward the four reform goals.

48. State Fiscal Stabilization Fund MOE Requirements: Under this program there are no maintenance of effort (MOE) requirements for school districts. However, there is a MOE requirement at the state level.

49. State Fiscal Stabilization Fund State Contacts: Brad Neuenswander, Director (Financial Contact)School Finance TeamKansas State Department of Education(785) 296-3872 bneuenswander@ksde.orgDale Dennis, Deputy Commissioner (Financial Contact)Fiscal and Administrative Services DivisionKansas State Department of Education(785) 296-3871ddennis@ksde.org Diane DeBacker, Deputy Commissioner (Program Contact)Learning and Innovative Services DivisionKansas State Department of Education(785) 296-2303ddebacker@ksde.org

50. State Fiscal Stabilization Fund For additional information: • KSDE Recovery Act Website: http://www.ksde.org • U.S. Department of Education Recovery Act Website: http://www.ed.gov/recovery • Federal Recovery Act Website: www.recovery.gov