The American Recovery and Reinvestment Act: Education Funding for Massachusetts

1
The American Recovery and Reinvestment
ActEducation 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 Patricks 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
  Patricks 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 states 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