Volume I, No. 18
March 19, 2009
The Application Process for AARA State Stabilization Funds Moves Forward
By Anna Ferrera
The United States Department of Education (USDE) has developed a draft application for the State Fiscal Stabilization Fund (SFSF) under the American Recovery and Reinvestment Act. The draft is now pending approval at the Office of Management and Budget.
The USDE has also requested an emergency clearance of the application by the Office of Management and Budget (OMB) that was posted in the Federal Register today.
“In order to provide immediate assistance to help alleviate the substantial budget shortfalls that States are facing,” the Department of Education request states, “the (Education) Department is committed to providing 67 percent of each State’s Stabilization allocation within a very short timeframe, necessitating emergency clearance of the Stabilization program application.” The requested approval date for OMB approval is March 23.
SFSF funds, ESEA Title I - Part A and IDEA - Part B will be available in two phases. Funds from these programs are to be delivered by formula from the USDE to the States.
This formula grant program has two distinct portions—the Education Fund and the Government Services Fund. Specifically, the USDE intends to award each state with 67 percent of the total amount that it is to receive under both the Education Fund and the Government Services Fund within two weeks of our receipt of a complete application.
Other state stabilization timeline information:
By the End of March:
- Applications for the initial 67% of the SFSF will be available.
- 50% of the $10 billion Title 1, Part A recovery funds will be available
- 50% of the $11.3 billion IDEA, Part B Grants to States and 50% of the $400 million Preschool Grants will be available.
- At least 50% of the $500 million IDEA, Part C funds will be available.
July 1, 2009 to October 1, 2009
- The remaining 33% of the SFSF will be available.
- The remaining 50% of Title 1, Part A recovery funds will be available
- The remaining 50% of the IDEA, Part B and Preschool Grant funds will be available.
- Pell Grants $17.1 billion and Work Study $200 million for school year 2009-2010.
Fall 2009
- State Incentive Grants ($4.35 billion) and Local Innovation Grants ($650 million) will be competitively awarded in two rounds:
- Statewide Data System funding ($250 million) will be competitively awarded.
- Title 1 School Improvement Grants ($3 billion) will be available.
- Education Technology State Grants ($650 million) will be available.
Contact Californians for School Facilities for more information, membership and our upcoming trip to Washington D.C. April 27 and 28. aferrera@m-w-h.com
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