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The American Recovery and Reinvestment Act: Education Funding for Massachusetts

The American Recovery and Reinvestment Act: Education Funding for Massachusetts. Executive Office of Education May 20, 2009. Overview. Overview of the ARRA Goals and Principles Primary Categories of Funding Expected Funding for Massachusetts Funding Announced to Date Key Provisions

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The American Recovery and Reinvestment Act: Education Funding for Massachusetts

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  1. The American Recovery and Reinvestment Act:Education Funding for Massachusetts Executive Office of Education May 20, 2009

  2. Overview • Overview of the ARRA • Goals and Principles • Primary Categories of Funding • Expected Funding for Massachusetts • Funding Announced to Date • Key Provisions • State Fiscal Stabilization Fund • Funding for Early Education • Funding for Elementary and Secondary Education • Funding for Higher Education • Competitive Grants • Ongoing Tasks of the EOE

  3. American Recovery and Reinvestment Act The American Recovery and Reinvestment Act of 2009 (ARRA) provides approximately $100 billion nationwide for education. Goals: • Stimulate the economy in the short term • Invest in education and other essential public services to ensure the long-term economic health of the nation Principles: • Spend funds quickly to save and create jobs • Improve student achievement through school improvement and reform • Ensure transparency, reporting, and accountability • Invest the ARRA funds in a thoughtful and strategic manner to minimize the “funding cliff”

  4. Primary Categories of Funding • Formula-based funding for states, districts, and schools • State Fiscal Stabilization Fund • Title I, Part A (including Targeted Grants, Education Finance Incentive Grants, and School Improvement Grants) • IDEA, Parts B and C • Competitive grant funding • Innovation and improvement efforts • Integrating educational technology into curricula and instruction • Improving the quality of teaching • Enhancing research activities • Funding to support the construction, modernization, and repair of K-12 and post-secondary school facilities • Tax Credit Bonds for Schools

  5. Expected Funding for Massachusetts Over the next two years, Massachusetts will receive substantial assistance through the ARRA to support early education, K-12 education, and higher education. Based on estimates released by the U.S. Department of Education, Massachusetts is expected to receive $1.88 billion in additional funding. • This amount includes the total state allocation from the State Fiscal Stabilization Fund, but does not include potential competitive grant awards and support for capital projects.

  6. Funding Announced to Date • $412 million from the State Fiscal Stabilization Fund to guarantee foundation-level funding and hold all school districts harmless in FY 2009 • $168 million from the State Fiscal Stabilization Fund to guarantee foundation-level funding for all school districts in FY 2010, based on Governor Patrick’s House 1 budget proposal • $162 million from the State Fiscal Stabilization Fund to restore state funding for public colleges and universities in FY 2010, based on Governor Patrick’s House 1 budget proposal

  7. Funding Announced to Date (continued) • $280 million in additional IDEA, Part B Grants to States and $10 million in IDEA, Part B Preschool Grants to support the provision of special education services • $163 million in additional Title I, Targeted Grants and Education Finance Incentive Grants to support high-poverty districts in Massachusetts

  8. State Fiscal Stabilization Fund Massachusetts will receive $994 million in Fiscal Stabilization funds. According to the ARRA, 81.8 percent of the funds ($813 million) must be used to support early childhood education, K-12 education, and higher education by: • Restoring state aid to school districts to the greater of the FY 2008 or 2009 level in FY 2009, 2010, and 2011 through the state’s primary elementary and secondary funding formula (and where applicable, allowing the implementation of increases to K-12 education for FY 2010 and 2011 that were enacted prior to October 1, 2008); and • Restoring state support to public institutions of higher education to the greater of the FY 2008 or 2009 level to the extent feasible in FY 2009, 2010, and 2011. The remaining 18.2 percent of the funds ($181 million) may be used for public safety and government services including education services.

  9. State Fiscal Stabilization Fund (Continued) Funding will be available in two stages: • The initial 67 percent of Fiscal Stabilization funding ($666 million) will be available to states within two weeks of receipt of an approvable application to the U.S. Department of Education. • Governor Patrick submitted Massachusetts’ application on May 15, 2009. • The second phase of funding will be awarded on a rolling basis beginning July 1, 2009. • Governors must provide information about state plans and progress, and how the state and its school districts will use funds to improve teaching and learning.

  10. Applying for Stabilization Funding In order to receive the initial allocation of SFSF funding, governors must provide the following types of information: • Assurances that they are advancing the following four reforms described in the statute; • Making progress toward rigorous standards and high-quality assessments for all students • Establishing pre-K to college career data systems • Making improvements in teacher effectiveness and the equitable distribution of teachers • Providing effective interventions for the lowest-performing schools • Baseline data on their current status in each area; and • Basic information about how the funds will be used.

  11. Applying for Funding (continued) • State Maintenance of Effort Requirements The state must provide assurances that the state will meet federal maintenance of effort requirements. • In FY 2009, 2010, and 2011, the state will maintain state support for elementary and secondary education at least at the level of such support in FY 2006. • In FY 2009, 2010, and 2011, the state will maintain state support for public IHEs (not including support for capital projects or for research and development or tuition and fees paid by students) at least at the level of such support in FY 2006.

  12. Funding for Early Childhood Education • Child Care and Development Block Grant Massachusetts will receive $24 million to provide child care services, of which $1.9 million is for quality expansion activities and $1.1 million is for infants and toddlers. • Head Start and Early Head Start Massachusetts will receive $10.1 million in combined funding to support Head Start and Early Head Start programs. • Grant applications for Head Start and Early Head Start programs will be available in the coming weeks.

  13. Funding for Early Childhood Education (continued) • IDEA, Part C Grants for Infants and Families Massachusetts will receive an additional $7.3 million to support special education services for infants and families to supplement the amount that the state currently receives annually ($7.3 million in 2008). Fifty percent of the funds was made available on April 1, 2009, and the remaining funds will be allocated by September 30, 2009. The state will also receive $10.2 million in additional funding through IDEA, Part B Preschool Grants to support special education services for preschool-aged children (please refer to pages 15 and 16).

  14. Funding for Elementary and Secondary Education • Title I An additional $163 million in Targeted Grants and Education Finance Incentive Grants to school districts to support schools in high-poverty areas to supplement the amount that the state currently receives annually ($233 million in 2008). • Fifty percent of the Title I funds was made available to states on April 1, 2009; the remainder will be available from July 1, 2009 – September 30, 2009. Title I awards under ARRA are in addition to regular FY 2009 grant awards. • School districts must obligate at least 85 percent of the total FY 2009 Title I, Part A funds (including the ARRA funds) by September 30, 2010, and all remaining funds must be obligated by September 30, 2011. • Additional Title I, Part A funding under the School Improvement Program is forthcoming.

  15. Funding for Elementary and Secondary Education (continued) • IDEA, Part B Grants to States Massachusetts will receive an additional $280 million to support special education services to supplement the amount that the state currently receives annually ($269 million in 2008). • IDEA, Part B Preschool Grants The state will also receive an additional $10.2 million to support special education services for preschool-aged children to supplement the amount that the state currently receives annually ($9.7 million in 2008).

  16. Funding for Elementary and Secondary Education (continued) • IDEA, Part B Grants to States and Preschool Grants (continued) • Fifty percent of the IDEA, Part B funds was made available to states on April 1, 2009, and the remainder will be available by September 30, 2009. • IDEA, Part B awards under ARRA are in addition to regular FY 2009 awards. • School districts should begin obligating the majority of additional IDEA, Part B funds during the 2008 – 2009 and 2009 – 2010 school years. All IDEA, Part B funds must be obligated by September 30, 2011.

  17. Funding for Elementary and Secondary Education (continued) • Educational Technology Grants Massachusetts will receive an additional $10.5 million to support state, district, and school technology investments in K-12 schools. • Funding will be available beginning in fall 2009. • McKinney-Vento Funding Massachusetts received an additional $1.1 million for competitive subgrants to school districts to provide comprehensive services to homeless students and their families. • An application for competitive subgrants will be available to school districts in spring 2009.

  18. Tax Credit Bonds for Schools • Qualified School Construction Bonds The ARRA includes a national bond authorization of $11 billion in both 2009 and 2010 to support the construction, modernization, and repair of public schools. Sixty percent per year will be allocated to states and 40 percent will be allocated to selected large school districts nationwide in proportion to the Title I funding received by both states and districts during the previous fiscal year. • In 2009, Massachusetts will receive $144 million in bonds that will be allocated to issuers within the state. • In 2009, Boston and Springfield will receive $37 and $17 million respectively in bonds. • Issuers will be generally responsible for repayment of just the principal, which will eliminate the burden of interest payments.

  19. Tax Credit Bonds for Schools (continued) • Qualified Zone Academy Bonds In 2008, a national limitation of $400 million in both 2008 and 2009 was established for QZABs, and the ARRA expanded the QZAB program through the issuance of up to $1.4 billion in bonds in both 2009 and 2010. Allocations will be made to states on the basis of their populations of individuals below the poverty line, and state educational agencies will allocate the amount to qualified zone academies to support facility, resource, and teacher training needs. • For 2008, the allocation for Massachusetts is $6 million. • For 2009, the allocation for Massachusetts is $21 million. • Issuers will be generally responsible for repayment of just the principal, which will eliminate the burden of interest payments.

  20. Funding for Higher Education • Pell Grants An additional $363 million for students at Massachusetts colleges and universities to supplement the amount that students currently receive annually ($257 million in 2008). • Maximum award is increased from $4,850 to $5,350. • Federal Work Study An additional $9.2 million for Massachusetts colleges and universities to provide work study jobs to supplement the amount that the state currently receives annually ($45 million in 2008). Funds for Pell Grants and Federal Work Study will be available, pending disbursement, beginning July 1, 2009.

  21. Competitive Grants • State Incentive Grants – “Race to the Top” Fund $4.35 billion nationwide for competitive grants to states to drive significant improvement in student achievement. Grants will be awarded in two rounds in fall 2009 and spring 2010. • Innovation Fund – “Investing in What Works and Innovation” Fund $650 million nationwide to states, school districts, and schools that have significantly closed achievement gaps, exceeded NCLB performance objectives, significantly improved graduation rates and the recruitment and placement of high-quality teachers, and established private sector partnerships to help bring results to scale.

  22. Competitive Grants (continued) • Teacher Incentive Fund $200 million nationwide for local districts to support performance-based teacher and principal compensation systems in high-need schools. • Teacher Quality Enhancement Grant Program $100 million nationwide for competitive grants to partnerships to promote innovative approaches for training teachers. • Statewide Longitudinal Data Systems $250 million nationwide for state educational agencies to design and implement longitudinal data systems to manage, analyze, disaggregate, and utilize individual student data. Funding for these grants will be available beginning in fall 2009 based on the quality of the applications submitted through a competitive grant process.

  23. Competitive Grants (continued) • Broadband Technology Opportunities Program $200 million nationwide for public libraries and community colleges to expand public computer center capacity. • Community College and Career Training Grant Program $40 million in FY 2009 and 2010 (and $10 million for the period beginning October 1, 2010 and ending December 31, 2010) to educational institutions to develop, offer, or improve education and career training programs suited to workers who are eligible for the Trade Adjustment Assistance for Workers program. • Health Care Workers $500 million nationwide to address workforce shortages in health professions (including $300 million for the National Health Service Corps recruitment and field activities, of which $75 million will be available through September 30, 2011).

  24. Research Funding The ARRA provides additional funding for a number of research-related programs (including funds for construction and renovation of research facilities) for which Massachusetts colleges and universities typically are eligible to apply. Agencies include: • U.S. Department of Agriculture • National Institute of Standards and Technology • National Aeronautics and Space Administration • National Science Foundation • U.S. Department of Energy • National Institutes of Health

  25. Ongoing Tasks of the EOE • Meet regularly with the Federal Stimulus Task Force (Commissioners Killins, Chester, and Freeland, President Jack Wilson, and their respective CFOs) • Collaborate with the Department of Elementary and Secondary Education and other agencies as necessary to prepare the state application for the State Fiscal Stabilization Fund • Continue to update the Legislature, state agencies, and other stakeholders about additional guidance regarding other provisions and funding streams as information becomes available • Collaborate with the Department of Early Education and Care, the Department of Elementary and Secondary Education, and the Department of Higher Education to follow both federal and state reporting and accountability guidelines

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