American Recovery & Reinvestment Act: A Look Back…A Look Ahead

1. American Recovery & Reinvestment Act:A Look Back…A Look Ahead September 2009

2. Topics To Be Covered • Developments since June 2009 • Reporting requirement • Educational Stabilization FY09-10 process • Where to find help • Questions

3. Since June… • All IDEA Flowthrough $ released by USED • IDEA Special Education Preschool $ released by USED • IDEA Early On $ released by USED • Title I (A) $ released by USED • Equipment Assistance awards • Mc-Kinney Vento Homeless awards • Emergency Food Assistance $ distributed • Stabilization Phase I $ available for draw down

4. Since June…(continued) • USED release of proposed requirements for: -Stabilization Phase II -Race to the Top -Statewide Longitudinal Data System -Title I School Improvement • Anticipate USED release of requirements (soon) for: -Investing in Innovation Fund -Teacher Incentive Fund • OMB & USED release of guidance on reporting requirements • Official MDE memos (DUNS, SFSFI,Teacher Quality Partnership, FAQs,EECBG, QSCB,GAO Survey, ARRA Talking Points, Title IIDReporting, SFSFII)

5. ARRA Reporting • Section 1512 Reporting • Program Performance Reporting • Final Expenditure Reporting • Financial Information Database

6. Section 1512 Reporting Separate from program specific reporting and final expenditure reporting Quarterly reporting for each ARRA grant award Extensive guidance from OMB and USED MDE is responsible to submit report 10 days after each quarter MDE will build majority of report from existing systems Some required information is not known MDE will use MEGS to ask for quarterly updates from districts: How many jobs were created or retained Description of type of jobs created/retained Vendor information on any vendors contracted using ARRA funds Infrastructure expenditures

7. Section 1512 Report (continued) • Report will be available in MEGS • Level 5’s can initiate • District will access single report that will include all ARRA grant awards • Report separately on each grant award • All recipients must submit report every quarter • Continuation of funding contingent on report submission • Districts required to have DUNS number entered in EEM • Districts are required to register in the Central Contractor Registry (CCR) and indicate they have registered in the EEM. • First Section 1512 report iteration due to MDE October 5, 2009 • Anticipate report available in MEGS week of September 21

8. Program Reporting Grant Specific Reporting Guidance will come from MDE Program Offices Traditionally, this is end of grant reporting Interim reports may be required Districts will be contacted when specifics are known

9. Final ExpenditureReporting • FER reporting done in CMS • Complete when funds drawn or at end of grant period whichever comes first • Normal MEGS-CMS interaction • Latest approved budget pulled in • ES grants do not have a budget

10. Financial InformationDatabase (FID) ARRA grants will be included in the annual FID  Reporting requirements have not been totally resolved  Districts may be required to utilize the State Code dimension of the accounting structure when reporting to the 2009-10 FID Standard “State Codes” are available in the Michigan Public School Accounting Manual, Appendix, Pages 49-58 http://www.michigan.gov/mde/0,1607,7-140-6530_6605-21321--,00.html

11. Accountability andTransparency Expect reports to be posted on websites (federal and/or state) Keep separate accounting ledgers for ARRA funds Expect to be monitored Expect quarterly or more frequent reporting with quick turn around timelines

12. Anticipated Education StabilizationFY 2010 Process State submits application to USED for SFSF Part II USED awards remaining allocation to State ($429,781,767) Remaining Part I award: $272,587,225 FY2010 State Budget Negotiations Determine State Aid for FY2010 Determine available Part I and Part II amount of ES funds available to restore cuts

13. Anticipated Education StabilizationFY 2010 Process (continued) FY2010 State Budget Negotiations Legislative appropriation Tentative allocations determined Superintendent approval of allocations Announcement to Districts/IHEs Partial awards made to all eligible applicants District/IHE request/drawdown funds NOTE: No new application required

14. New SF ApplicationNot Required Applications submitted in June/July 2009 can be amended Update contacts or statement on district use of funds in FY2010 How funds helped to create or save jobs How district intends to advance essential reform Re-submission by Authorized Official (level 5)

15. FY 2010 Possibilities As of 9/15/09 no FY09-10 budgets enacted Revenues since May Estimating Conference lower $1.3 billion in SFSF to help alleviate shortfalls -$600 million used in FY08-09 -approximately $634 million remaining to offset reductions in FY09-10 and/or FY10-11 -$429 million (of $634 million) not available until Phase II approved Until budget bills enacted won’t know how much of SFSF will be used in FY09-10 Remaining SFSF will not cover the shortfall Reductions in school aid handled as in FY08-09 Unclear at this time how reductions beyond SFSF will be handled

16. What is different in FY 2010? Federal funds can be drawn on a reimbursement basis only FY2009 awards made AFTER the school year ended, so reimbursement basis was easy FY2010 awards will be made starting October: recipients required to ensure they comply with all Federal guidance Draw funds only for allowable expenditures

17. Allowable Use of Funds Consistent with overall intent and goals of ARRA Short-term investments…long-term benefits Any activity authorized under ESEA (including Impact Aid), IDEA, Adult and Family Literacy Act, & Perkins Career and Tech Education Act, or for modernization, renovation or repair

18. Prohibited Use of Funds Payment of maintenance costs Stadiums or other facilities used for athletics/exhibitions where admission is charged Purchase or upgrades of vehicles Improvement of facilities, e.g., central office administration, operations or transportation Modernization, renovation or repair inconsistent with State law Construction of aquariums, zoo operations, golf courses, swimming pools Restoring a “rainy day” fund

19. Potentially Eligible Agencies Local Education Agencies Public School Academies Institutes of Higher Education IHE’s will get ES funds in FY2010

20. Things to Think About It is strongly advised to read the SFSF guidance Think/plan/act for stabilization and innovation Four core reform assurances Plan for sustainability beyond September 30, 2011 Detailed accountability, tracking, transparency & monitoring

21. Questions? General Questions Jann Jencka 517-373-0200 jenckaj@michigan.gov Federal Cash Draw, Accounting, and Reporting Craig Thurman 517-373-2810 thurmant@michigan.gov Education Stabilization Funds Louis Burgess 517-373-1806 mdestabilization@michigan.gov Section 1512 Reporting Jill Bradshaw 517-373-1806 bradshawj@michigan.gov

24. Frequently Asked Questions • Stabilization • Title I • Title I Recovery Act • IDEA • IDEA Recovery Act • McKinney-Vento & Homeless • Miscellaneous

25. ARRA IMPLEMENTATION • Where to Find Help… • MDE Recovery Website (www.michigan.gov/mde-recovery) • Ideas for Using ARRA Funds • Implementation Timelines • Q & A Documents • Link to ARRA Act of 2009 • Link to April 2009 US Education State Fiscal Stabilization Fund Program Guidance • Podcasts • Power Point Presentations • MDE Communications • Grant Opportunities/Awards/Allocations/Dates • Michigan Economic Recovery Website (www.michigan.gov/recovery) • US Education Recovery Website (www.ed.gov/recovery) • Federal Recovery Website (www.recovery.gov) • MASA/MASB/MSBO/MAPSA • Conferences • Communications • Websites www.gomasa.org, www.masb.org, www.msbo.org, www.charterschools.org • Key Contacts • MDE • Title I: Consolidated Application – Mike Radke, 517.373.3921 radkem@michigan.gov • IDEA (Special Education Flowthrough) – John Andrejack, 517.241.1235 andrejackj@michigan.gov • IDEA (Special Education Flowthrough) – John Cloft, 517.335-0475 cloftj@michigan.gov • IDEA (Preschool; Early On) – Gary Schafer, 517.373.8483 schaferg@michigan.gov • Race to the Top (Project Reimagine)/Investing in Innovation Fund (i3) – • Sally Vaughn, 517.335.0011, vaughns1@michigan.gov • Homeless – Pam Kies-Lowe, 517.241.1162 kies-lowep@michigan.gov