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www.bakerdaniels.com American Recovery & American Recovery & Reinvestment Act of Reinvestment Act of 2009 2009 Education-related Stimulus Appropriations
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American Recovery & Reinvestment Act of 2009

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Page 1: American Recovery & Reinvestment Act of 2009

www.bakerdaniels.com

American Recovery & American Recovery & Reinvestment Act of 2009Reinvestment Act of 2009

Education-related

Stimulus Appropriations

Page 2: American Recovery & Reinvestment Act of 2009

2

“Typically, school district spending on textbooks, supplemental resources, and technology ranges from 2 to 4 percent of [a school’s] overall budget… The stimulus could boost spending in these areas into a range of 5 to 10 percent. ….5 to 10 percent of $100 billion is a pretty large infusion into this market.”

Textbook publisher, quoted in Education Week,

May 13, 2009

Page 3: American Recovery & Reinvestment Act of 2009

Where are the opportunities?Where are the opportunities?

Companies in search of education-related opportunities are focusing on 3 main areas:– Products that are good candidates for one-

time funding (such as technology, computers, data systems)

– Services (such as how to use stimulus funding to turn around a failing school)

– Consulting (how to get even more stimulus dollars)

3

Page 4: American Recovery & Reinvestment Act of 2009

Where are the opportunities?Where are the opportunities? Companies that offer help and materials for

special education and for struggling schools could benefit the most, since special education and Title I programs are getting a combined $15 billion nationally from the stimulus ($492 million in Indiana)

Because most school districts are expected to spend their funding within the next 6-8 months, existing companies with solid track records may prevail over start-ups.

4

Page 5: American Recovery & Reinvestment Act of 2009

Some things you want to know Some things you want to know about ARRA…about ARRA…

A. When will the money begin flowing?

B. Who is eligible to receive education stimulus funds?

C. How do I get my share of the stimulus money?

Page 6: American Recovery & Reinvestment Act of 2009

$44 Billion Available in April$44 Billion Available in April

State Stabilization - $32.5 billion (67%) IDEA, Parts B & C - $6.1 billion (50%) Title I, Part A - $5 billion (50%) Vocational Rehabilitation - $270 million (50%) Independent Living - $52.5 million (100% of formula

monies; $87.5 million in competitive grants to follow) Homeless Youth - $70 million (100%) Impact Aid - $40 million (100% of formula monies; $60

million in competitive grants to follow)

Page 7: American Recovery & Reinvestment Act of 2009

Additional $49 Billion Available Later in 2009Additional $49 Billion Available Later in 2009

Pell & Work Study - $17.3 billion (100%) State Stabilization - $16.1 billion (33%) IDEA , Parts B & C - $6.1 billion (50%)  Title I, Part A - $5 billion (50%) Title I School Improvement - $3 billion (100%) Enhancing Education through Technology - $650 million

(100%) Vocational Rehabilitation - $270 million (50%) Statewide Data Systems - $250 million (100%) Teacher Incentive Fund - $200 million (100%) Teacher Quality Enhancement - $100 million (100%)

Page 8: American Recovery & Reinvestment Act of 2009

What is Indiana getting? What is Indiana getting? State Stabilization - $1 billion IDEA - $271 million Title I - $221 million Vocational Rehabilitation & Independent living - $15

million Homeless Youth - $1 million Federal Work-Study - $4 million Educational Technology - $10.9 million

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Page 9: American Recovery & Reinvestment Act of 2009

Advance Core Reforms: AssurancesAdvance Core Reforms: Assurances

Page 10: American Recovery & Reinvestment Act of 2009

FormulaFormula CompetitiveCompetitive

Page 11: American Recovery & Reinvestment Act of 2009

FormulaFormula CompetitiveCompetitive

Page 12: American Recovery & Reinvestment Act of 2009

State Fiscal Stabilization Fund State Fiscal Stabilization Fund (Formula)(Formula)

How much?$48.6 Billion

–Education (81.8%)–Government Services (18.2%)

Purpose:

Restoring state support for education and other government services.

Timelines:

Money likely to be distributed in two parts

Strings Attached:

Application and assurances by Governor and heavy reporting

Indiana’s share: $1 billion

Page 13: American Recovery & Reinvestment Act of 2009

SFSF Education Fund: UsesSFSF Education Fund: Uses Education funds for elementary and secondary must run

through State’s primary funding formulae

LEAs may use funds for any activity authorized under ESEA, IDEA, Adult Ed, or Perkins, including modernization of school facilities and salaries to avoid teacher layoffs

LEAs encouraged to use funds for activities that advance progress on the assurances and drive lasting results without unsustainable recurring costs

General Assembly is expected to appropriate nearly $700 million in SFSF funds through the school funding formula.

Page 14: American Recovery & Reinvestment Act of 2009

SFSF Education Fund: UsesSFSF Education Fund: Uses IHEs may use education funds for:

– education and general expenditures– mitigating tuition and fee increases for in-State

students– modernization, renovation, and repair of

facilities used for instruction, research, student housing

– General Assembly is expected to appropriate $130 million to IHEs in biennial budget.

Page 15: American Recovery & Reinvestment Act of 2009

SFSF Government Fund Services: UsesSFSF Government Fund Services: Uses

States may use for education, public safety and other government services

May include modernization & renovation of public schools and public and private college facilities.

Failed Senate budget appropriated entire $183 million, including $25 million for 21st Century Fund, $10 million for MIND, $22.5 million for CORE research, & $65 million for SASE.

Page 16: American Recovery & Reinvestment Act of 2009

State Fiscal Stabilization Fund State Fiscal Stabilization Fund (Competitive)(Competitive)

How much?$5 Billion

–Incentive Fund –Innovation Fund ($650M)

Purpose:

Competitive grants to stimulate education reform

Timelines:

Grants for FY 2010

Strings Attached:

Application and assurances by Governor and heavy reporting

Page 17: American Recovery & Reinvestment Act of 2009

““Race to Top” / “What Works and Innovation”Race to Top” / “What Works and Innovation”

“Race to the Top” – $4.35 billion competitive grants to States making most progress toward the assurances

“What Works and Innovation” – $650 million competitive grants to LEAs and non-profits that have made significant gains in closing achievement gaps to be models of best practices. Purpose is to “scale up” promising programs such as Teach for America and New Leaders for New Schools.

2010 grant awards will be made in two rounds – late 2009, 2010

Page 18: American Recovery & Reinvestment Act of 2009

Title I, Part A (Targeted & EFIG)Title I, Part A (Targeted & EFIG)

How much?$10 Billion

–$5 Billion for targeted–$5 Billion for incentive

Purpose:

To help children in poverty meet challenging state academic standards

Timelines:ED to rush to get money to SEAs, LEAs, and SchoolsIntended for 2009-2010 & 2010-2011 school years

Strings Attached:Congress ‘expects’ some of the funds to be used for early childhood programs and activities

Indiana’s share: $169 million

Page 19: American Recovery & Reinvestment Act of 2009

Title I, Part A (Targeted & EFIG)Title I, Part A (Targeted & EFIG)

Fort Wayne Community Schools - $8.7 million East Allen County Schools - $1.7 million Northwest Allen County Schools - $215,000 Southwest Allen County Schools - $0

Page 20: American Recovery & Reinvestment Act of 2009

Title I, Part A (Targeted & EFIG)Title I, Part A (Targeted & EFIG)

Indianapolis Public Schools – $23.4 million MSD Wayne Township - $3.9 million MSD Perry Township – $2.7 million MSD Warren Township – $2.2 million MSD Lawrence Township - $2 million MSD Washington Township – $1.9 million MSD Decatur Township - $1.1 million

Page 21: American Recovery & Reinvestment Act of 2009

Title I, Part A (School Improvement)Title I, Part A (School Improvement)

How much?$3 Billion

Purpose:

To assist schools identified for improvement, corrective action, and restructuring.

Timelines:ED to rush to get money to SEAs, LEAs, and SchoolsIntended for 2009-2010 & 2010-2011 school years

Strings Attached:Congress ‘directs’ 40 percent of the funds to be used for middle and high schools

Indiana’s share: $51.8 million

Page 22: American Recovery & Reinvestment Act of 2009

Impact Aid ConstructionImpact Aid Construction

How much?$100 Million

–$60 million for 8007a–$40 million for competitive grants

Purpose:

Competitive grants for emergency repairs and modernization of school facilities

Timelines:No specific requirement in legislation

Strings Attached:‘Shovel ready’ projects

Indiana’s share: $0

Page 23: American Recovery & Reinvestment Act of 2009

Education Technology (Title II-D)Education Technology (Title II-D)How much?$650 Million

Purpose:

To improve student academic achievement through the use of technology

Timelines:Intended for 2009-2010 & 2010-2011 school years

Strings Attached:

High-Need Local Educational Agency

Indiana’s share: $10.9 million

Page 24: American Recovery & Reinvestment Act of 2009

McKinney Vento Homeless AssistanceMcKinney Vento Homeless Assistance

How much?$70 Million

Purpose:

Mitigate the effects of the economic crisis on homeless youth

Timelines:Intended for 2009-2010 & 2010-2011 school years

Strings Attached:

Segregation of homeless students is prohibited

Indiana’s share: $959,295

Page 25: American Recovery & Reinvestment Act of 2009

Potential usesPotential uses Supplemental educational services Health referral Professional development Transportation to school of origin Before- and after-school programs Parent education & training School supplies Coordination with service providers

Page 26: American Recovery & Reinvestment Act of 2009

Teacher Incentive FundTeacher Incentive FundHow much?$200 Million

Purpose:

To develop and implement performance-based teacher and principal compensation systems

Timelines:Not specifically specified in law

Strings Attached:

Compensation systems must consider gains in student achievement and classroom evaluations

Indiana’s share: TBD

Page 27: American Recovery & Reinvestment Act of 2009

IDEA, Part B (Sec. 611)IDEA, Part B (Sec. 611)

How much?$11.3 Billion

Purpose:

To assist States to provide special education and related services to children with disabilities

Timelines:Intended for 2009-2010 & 2010-2011 school years

Strings Attached:

Reporting requirements

Indiana’s share: $253 million

Page 28: American Recovery & Reinvestment Act of 2009

IDEA, Part B (Sec. 611)IDEA, Part B (Sec. 611)

Fort Wayne Community Schools - $9.2 million East Allen County Schools - $2.5 million Northwest Allen County Schools - $1.3 millon Southwest Allen County Schools - $1.4 million

Page 29: American Recovery & Reinvestment Act of 2009

IDEA, Part B (Sec. 611)IDEA, Part B (Sec. 611)

Indianapolis Public Schools – $10.3 million MSD Wayne Township - $3.9 million MSD Perry Township –$3.9 million MSD Warren Township –$3.1 million MSD Lawrence Township - $4 million MSD Washington Township –$2.9 million MSD Decatur Township - $1.5 million Franklin Township - $2 million

Page 30: American Recovery & Reinvestment Act of 2009

IDEA, Part B (Sec. 611)IDEA, Part B (Sec. 611)

Carmel-Clay – $3.2 million Noblesville - $2 million Hamilton-Southeastern – $3.5 million Westfield-Washington - $1.3 million Center Grove - $1.6 million Zionsville - $1.1 million Brownsburg - $1.6 million Avon – $1.8 million

Page 31: American Recovery & Reinvestment Act of 2009

IDEA, Preschool Grants (Sec. 619)IDEA, Preschool Grants (Sec. 619)

How much?$400 Million

Purpose:

To provide special education and related services to preschool age children with disabilities

Timelines:Intended for 2009-2010 & 2010-2011 school years

Strings Attached:

Reporting requirements

Indiana’s share: $9.2 million

Page 32: American Recovery & Reinvestment Act of 2009

IDEA, Preschool Grants (Sec. 619)IDEA, Preschool Grants (Sec. 619)

Fort Wayne Community Schools - $342,378 East Allen County Schools - $93,175 Northwest Allen County Schools - $47,304 Southwest Allen County Schools - $51,940

Page 33: American Recovery & Reinvestment Act of 2009

IDEA, Preschool Grants (Sec. 619)IDEA, Preschool Grants (Sec. 619)

Indianapolis Public Schools – $383,445 MSD Wayne Township - $144,962 MSD Perry Township –$145,363 MSD Warren Township –$114,682 MSD Lawrence Township - $148,125 MSD Washington Township $107,698 MSD Decatur Township - $57,055 Franklin Township - $75,024

Page 34: American Recovery & Reinvestment Act of 2009

IDEA, Preschool Grants (Sec. 619)IDEA, Preschool Grants (Sec. 619) Carmel-Clay – $118,703 Noblesville - $74,395 Hamilton-Southeastern – $130,441 Westfield-Washington - $47,648 Center Grove - $57,821 Zionsville - $38,879 Brownsburg - $60,275 Avon – $68,382

Page 35: American Recovery & Reinvestment Act of 2009

IDEA, Infants & Toddlers (Sec. 619)IDEA, Infants & Toddlers (Sec. 619)

How much?$500 Million

Purpose:

To provide early intervention services for infants and toddlers with disabilities and their families

Timelines:Intended for 2009-2010 & 2010-2011 school years

Indiana’s share: $8.6 million

Timelines:Not specifically specified in the law

Page 36: American Recovery & Reinvestment Act of 2009

Voc/Rehab State GrantsVoc/Rehab State Grants

How much?$540 Million

Purpose:

Employment supports

Timelines:Not specifically specified in the law

Indiana’s share: $12.3 million

Page 37: American Recovery & Reinvestment Act of 2009

Independent Living ProgramsIndependent Living Programs

How much?$140 Million

–$18.2M State Grants

–$87.5M Independent Living Centers

–$34.3M Older Blind

Purpose:

To supports projects that provide independent living services

Timelines:Not specifically specified in the law

Page 38: American Recovery & Reinvestment Act of 2009

Indiana’s share:Indiana’s share: Independent Living State Grant - $281,753 Centers for Independent Living - $1.8 million Services for Older Blind Individuals - $728,054

Page 39: American Recovery & Reinvestment Act of 2009

Pell GrantsPell Grants

How much?$15.84 Billion

Purpose:

To allow for a maximum Pell Grant award $5,350

Timelines:For 2009-2010 school year

Page 40: American Recovery & Reinvestment Act of 2009

HEA Title II, Part AHEA Title II, Part A

How much?$100 Million

Purpose:

To make lasting changes in the ways teachers are recruited, prepared, licensed, and supported.

Timelines:Not specified in legislative history

Strings Attached:

New rules from recent HEA reauthorization

Page 41: American Recovery & Reinvestment Act of 2009

Potential Uses of PreK-12 ARRA Funds to Drive Potential Uses of PreK-12 ARRA Funds to Drive Long-Term Educational Reform and Improvement Long-Term Educational Reform and Improvement

Developing rigorous standards and high-quality assessments

Increase student participation in rigorous college and career courses

Develop and adopt valid and reliable formative assessment systems

Purchase or adapt high quality curriculum aligned to standards with embedded assessments

Page 42: American Recovery & Reinvestment Act of 2009

Potential Uses of PreK-12 ARRA Funds to Drive Potential Uses of PreK-12 ARRA Funds to Drive Long-Term Educational Reform and Improvement Long-Term Educational Reform and Improvement

Turning around low-performing schools Close and re-open schools with new leadership and

staff, new instructional programs, and extended learning time

Create summer programs and 9th-grade academies so that students are equipped to succeed in algebra and college-preparatory classes

Launch a comprehensive literacy program

Page 43: American Recovery & Reinvestment Act of 2009

Potential Uses of PreK-12 ARRA Funds to Drive Potential Uses of PreK-12 ARRA Funds to Drive Long-Term Educational Reform and Improvement Long-Term Educational Reform and Improvement

Establishing data systems and using data for improvement

Develop or enhance data systems that provide teachers information on student progress

Train educators to use data for decision-making to improve instruction

Implement online Individual Education Program (IEP) aligned with standards

Page 44: American Recovery & Reinvestment Act of 2009

Potential Uses of PreK-12 ARRA Funds to Drive Potential Uses of PreK-12 ARRA Funds to Drive Long-Term Educational Reform and Improvement Long-Term Educational Reform and Improvement

Improving results for all students Strengthen early learning programs Use technology to improve teaching and learning Increase student awareness of college and career

options and provide transition supports Invest in school modernization that advances up-to-date

science labs, energy efficiency, community, and early childhood facilities

Page 45: American Recovery & Reinvestment Act of 2009

National Science FoundationNational Science Foundation

How much?$3 Billion

–Incentive Fund –Innovation Fund ($650M)

Purpose:

Competitive grants to stimulate education reform

Timelines:

Grants for FY 2010

Strings Attached:

Application and assurances by Governor and heavy reporting

Page 46: American Recovery & Reinvestment Act of 2009

Your ChallengeYour Challenge Leverage “recovery funds” to stimulate

improvements and innovation in education to significantly improve teaching and learning.

Page 47: American Recovery & Reinvestment Act of 2009

Contact us for more information…Contact us for more information…