Fiscal Issues Impacting Perkins and the Adult Education Program (AEFLA)

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Fiscal Issues Impacting Perkins and the Adult
Education Program (AEFLA)

• Presented by
• Michael Brustein, Esq. Erin Auerbach, Esq.
• mbrustein_at_bruman.com eauerbach_at_bruman.com
• Brustein Manasevit, PLLC Spring Forum 2011

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Overview

• Funding
• Implementation Issues
• Common Questions

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Funding
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Current Funding Proposals
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Why Is Perkins Being Cut?

1. Obamas Budget last year eliminated Tech Prep
2. Obama and House propose to eliminate Tech Prep in
   2012

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Why Is Perkins Being Cut?

1. CTE programs are not living up to their purpose
   of preparing students for college and careers.
   ED Official
2. Programs must lead to high wage outcomes,
   industry recognized professional credentials, and
   students who can transition to postsecondary
   education without remedial classes. Brenda
   Dann-Messier

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What does history teach us about programs subject
to such cuts?
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Where were the D.C. Advocacy Organizations?

• ACTE
• State Directors

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Will the federal government still be the engine
driving the CTE train?
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Common Themes

• Silo Smashing
• Consolidation
• Move towards competitive grants, away from
  formula

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Will Perkins funding shift to support only
postsecondary?
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Implementation Issues
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Career and Technical Student Organization (CTSO)

• OVAE Perkins funds may not be used to support
  the lodging, feeding, conveying, or furnishing
  transportation to conventions or other forms of
  social assemblage for CTSOs.
• Perkins IV, Non-Regulatory Guidance QA Version
  3.0, Question D.26 (June 2, 2009)
• http//cte.ed.gov/docs/nonregulatory/PerkinsIVNon-
  RegulatoryGuidanceQAVersion3.0.pdf
• Perkins funds may be used for lodging, feeding,
  conveying, or furnishing transportation if the
  costs are
• (1) related to a CTSO that is an integral part of
  the curriculum, and
• (2) part of a larger program to serve special
  populations or nontraditional students

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So why does Perkins permit support for CTSOs?
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Improvement Plans

• Perkins Section 123(b)(2)
• the eligible recipient shall develop and
  implement
• a program improvement plan . . . during the first
  
• program year succeeding the program year for
• which the eligible recipient failed to so meet
  any of
• the local adjusted levels of performance for any
  of
• the core indicators of performance.

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Improvement Plans

• According to the language of the statute
  recipients that failed to meet performance
  indicators as reported in the 2010 CAR would have
  developed and began implementing an improvement
  plan on July 1, 2010.
• Not possible in the real world
• What should States do to be in compliance?

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Improvement Plans

• To date, no sanctions have been imposed on States
  who are not enforcing the exact language of the
  law.

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Improvement Plans

• During 12 months following the 90 deficiency,
• create a paper trail that
• Informs recipient of the need for an improvement
  plan
• Requests that the recipient will send to the
  State an assurance that it will take steps to
  address the deficiency during that 12 month
  period

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Supplanting

• Can Perkins or AEFLA funds be used to lawfully
  supplant State and local funds?

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Administrative Costs

• How do administrative costs compare to indirect
  costs?

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Administrative Costs

• Subgrantees must track administrative
  expenditures separately from programmatic
  expenditures.
• Administrative activities for both Perkins and
  AEFLA is a cost objective.

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Cost Objective

• function, organizational subdivision, contract,
• grant, or other activity for which cost data are
• needed and for which costs are incurred.
• OMB Circular A-87, Attachment A, B(11)

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Period of Availability

• Perkins
• State
• Subject to Tydings
• July 1 through September 30 of the following
  grant year (27 months)
• Locals
• Academic year
• AEFLA
• State and Locals
• Subject to Tydings
• July 1 through September 30 of the following
  grant year (27 months)

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Period of Availability

• Can the State limit the period of availability
  for subrecipients?
• 2009 Arkansas ESEA Monitoring Report
• States do not have the authority to shorten
  period of availability/carryover period for
  subgrantees, if the Tydings Amendment applies to
  that program.

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• Remedial Courses not allowable
• Remedial Services allowable
• Perkins IV, Non-Regulatory Guidance QA Version
  3.0, Funding for Remedial Education begins at
  Question D.18 (June 2, 2009)
• http//cte.ed.gov/docs/nonregulatory/PerkinsIVNon-
  RegulatoryGuidanceQAVersion3.0.pdf

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AEFLA Issues
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• ONLY ELIGIBLE STUDENTS MAY BE SERVED UNDER AEFLA!
• AEFLA Section 203(1)
• At least 16 years old AND
• Not enrolled or required to be enrolled in
  secondary school AND
• Lack mastery of basic educational skills AND
• Do not have a secondary school diploma or
  equivalent AND
• Are unable to speak, read, or write English

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• Use of multiyear grants/contract

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• Use of same funding announcement for all providers

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Common Questions
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Frequently Asked Questions

• May funds be used to pay for meals?
• And what about the use of funds for awards?
• Can funds be used to pay for bus transportation
  for students?
• If equipment is purchased, may Perkins funds be
  used for service warranties?
• Can funds be used to purchase iPods for students?
  For teachers as part of professional development?
• May funds pay for membership fees in professional
  organizations?
• Can funds be used for bags or t-shirts to give
  away to attendees of a professional development
  event?

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Frequently Asked Questions

• May funds be spent on pens and pads of paper to
  be used at a professional development event?
• May funds be used to pay for tuition costs for
  faculty to earn a degree?
• May funds be used for tuition costs for students?
• Can funds be used for stipends to non-faculty
  staff for time working outside of their
  contractual hours?
• Can funds be used for the cost of attendance at a
  professional development activity?
• Can funds be used for travel expenses to a
  professional development activity?

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Frequently asked questions

• May funds be used to pay for equipment repair
  cost?
• Can funds be used to pay for campus security
  guards?
• Can funds be used to upgrade electrical capacity?
• May funds be used for radio advertisements?
• May funds be used for financial aid training for
  college employees?
• May leadership funds be used for course
  development?

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Frequently asked questions

• Can funds be used for gift cards for students?
• If a technical college uses Perkins funds to pay
  a portion of a high school teachers salary
  should that employee complete a time and effort
  form?
• Can funds be used for teacher retirement
  benefits?
• May administration funds be used to purchase file
  cabinets?
• Can funds be used for a photographer at a
  professional development event?

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• Development of a policy and
• procedure manual?
• OMB Circular A-133 Audit Compliance
• OVAE Monitoring
• Consistency
• Provider input!

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  general information and does not constitute legal
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  based upon any information in this presentation
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  with your particular circumstances.