Department of Education Issues Flurry of New Information Regarding ARRA Funds

By Jackie Wernz

The Federal Department of Education has released a flurry of new information regarding various education stimulus programs under the American Recovery and Reinvestment Act (ARRA), the federal stimulus bill that provided tens of billions of dollars for economic stimulus efforts. New rules and information are available regarding three sources of funds under ARRA: the Race to the Top Fund, the State Fiscal Stabilization Fund (SFSF), and Title I of the Elementary and Secondary Education Act of 1965 (ESEA).

Race to the Top Fund Applications

Most recently the Department published, on November 18, 2009, the final version of its notice inviting applications for Race to the Top Fund awards for fiscal year (FY) 2010. With the notice, the Department also published 775 pages of rules regarding priorities, requirements, definitions, and selection criteria for the Race to the Top Fund. States will apply for the Race to the Top funds on a competitive basis, and successful states will receive part of what is estimated to be over $4 billion dollars in awards. For example, the regulations estimate that if Illinois is successful in its application, it could receive between $200 and $400 million dollars under the Race to the Top program.

In addition to listing priorities and evaluation measures for the Race to the Top funds, the final rules also include a number of application requirements, including a description of the progress the state has made over the past several years in each of the four education reform areas referenced in ARRA: (1) spending funds quickly to save and create jobs; (2) improving student achievement through school improvement and reform; (3) ensuring transparency, reporting, and accountability; and (4) investing one time ARRA funds thoughtfully to minimize the “funding cliff.” The materials provide more than 30 criteria that will be considered in choosing which states will receive funds, including criteria regarding evaluation of teachers and building administrators based on student performance and how well charter schools have been accepted in the states.

State Fiscal Stabilization Fund Reporting

The Department also issued, on November 12, 2009, the final rules and notice inviting applications for FY 2010 State Fiscal Stabilization Fund awards. The materials outline 35 reporting requirements that school districts will be required to meet in order to be eligible to receive funds under the next round of SFSF. Many of the reporting requirements are new, such as whether teachers and building administrators are evaluated based on student performance, and how many “highly qualified” teachers teach core subjects in high poverty and low poverty schools. There are also reporting requirements that address the acceptance and success of charter schools in the state.

Title I Teacher Salary Reporting

Finally, on November 16, 2009, Education Week reported that the Department plans to require districts receiving economic-stimulus aid to report school-level salaries to the Department. The Recovery and Reinvestment Act requires that school districts that receive Title I funds file a school-by-school listing of per-pupil expenditures with their state by December 2009. Education Week reported that forms filed by the Department with the White House Office of Management and Budget indicate the scope of the reporting requirements. Specifically, the Department indicated that it will require school districts to report information on wages, including: (1) total salaries for each school; (2) salaries of both instructional staff and teachers; and (3) non-personnel expenditures, if available. The Department also indicated it plans to request more comprehensive information from five states that will be chosen at a later date.