ARRA and federal education funds

The federal stimulus legislation provides a number of pots of federal money that school districts may qualify to receive. The Genesee School District will not qualify for some of those funds because we have made AYP (Adequate Yearly Progress) as defined by the NCLB legislation (No Child Left Behind). We are also a high socio-economic school district as measured by our free and reduced lunch rate which currently stands at 14.3%. Some of the federal money is targeted to schools who are in school improvement for not making AYP and for school districts that serve primarily poorer students.

The District does stand to receive substantial increases in Title VI-B, Title I-A and Tittle II-D funds. Title VI-B funds are targeted for expenditures in school-age and preschool-age special education. There exists in federal law a requirement that a school maintain its general fund expenditure effort in order to receive the VI-B funds. Essentially this means the District cannot reduce its expenditure of M&O funds that are allocated for special education unless some very narrow and specific criteria occur. We expect to receive additional VI-B funds as part of the stimulus above and beyond what we normally receive in one year, more than double the amount. This is one time money with very specific expenditure guidelines. Most District expenditures of VI-B money are used for salaries and benefits of special education aides, supplies and professional development.

The ARRA also will provide us with additional Title I-A funds. Title I-A is compensatory education. We utilize the money to pay for salaries and benefits of a teacher and a paraprofessional who provide remedial services in reading, language and math. We also expect to receive Title II-D funds which are targeted to be expended in the area of education technology. These funds normally would be used to pay for hardware, software and/or professional development.

We are anxiously awaiting notification of estimated amounts we will receive in the next fiscal year, as well as guidance on how these funds are to be used. Existing federal law and the recently passed ARRA legislation provide that guidance but are both very complex statutes that require extra care to insure that the use of the funds remains transparent. The Idaho Legislature must also authorize the expenditure of these funds before any funding authority is released to the school districts. The Legislature has not provided this authority yet.

There is one exciting benefit for the VI-B funds which does not exist in the legislation for Title I-A or Title II-D. Up to 50% of the new VI-B funds from ARRA can offset current M&O maintenance of effort expenditures. For example, if we receive an additional $60,000 we could move $30,000 of current M&O special education expenditures to VI-B expenditures thereby freeing up $30,000 of M&O funds that can be expended on activities covered by the Elementary and Secondary Education Act. This will provide a small amount of help in balancing the FY2010 budget.