American Recovery and Reinvestment Act Application for School Administrative Units for State Fiscal Stabilization Funds – Phase 1

INFORMATIONAL LETTER: 100
POLICY CODE: LG/EF

TO: Superintendents of Schools
FROM: Susan A. Gendron, Commissioner
DATE: May 8, 2009
RE: American Recovery and Reinvestment Act Application for School Administrative Units for State Fiscal Stabilization Funds – Phase 1

Public Law 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA), was signed into law by President Obama on February 17, 2009. Maine’s application has been approved for the State Fiscal Stabilization Funds, which includes both Education Stabilization funds and Government Services funds. Maine has been awarded 67% of the State’s allocation of those funds.

The State Fiscal Stabilization program is a new, one-time appropriation of approximately $48.6 billion that the U.S. Department of Education (Department) will award to Governors to help stabilize State and local budgets in order to minimize and avoid reductions in education and other essential services, in exchange for a State’s commitment to advance essential education reform in four areas: (1) making improvements in teacher effectiveness and in the equitable distribution of qualified teachers for all students, particularly students who are most in need; (2) establishing pre-K-to-college-and-career data systems that track progress and foster continuous improvement; (3) making progress toward rigorous college- and career-ready standards and high-quality assessments that are valid and reliable for all students, including limited English proficient students and students with disabilities; and (4) providing targeted, intensive support and effective interventions for the lowest-performing schools.

The U.S. Department of Education has provided the following guidance regarding the purposes and the prohibitions on use of these funds:

1. For what purposes may an LEA use Education Stabilization funds?

Subject to the limited statutory prohibitions described below, section 14003(a) of the ARRA authorizes an LEA to use Education Stabilization funds for any activity that is authorized under the following Federal education acts:

The Elementary and Secondary Education Act of 1965 (ESEA);
The Individuals with Disabilities Education Act (IDEA);
The Adult Education and Family Literacy Act (AEFLA); or
The Carl D. Perkins Career and Technical Education Act of 2006 (Perkins Act).

The ARRA also provides that, to the extent consistent with State law, an LEA may use Education Stabilization funds for modernization, renovation, or repair of public school facilities, including modernization, renovation, and repairs that are consistent with a recognized green building rating system.

If an LEA uses Education Stabilization funds for modernization, renovation, or repair of public school facilities or for construction of new school facilities , the LEA must comply with specific requirements relating to the use of American iron, steel, and manufactured goods used in the project. (See Section 1605 of the ARRA.)

2. What are the statutory prohibitions on an LEA’s use of Education Stabilization funds?

Section 14003 of the ARRA prohibits an LEA from using Education Stabilization funds for –

Payment of maintenance costs;
Stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public;
Purchase or upgrade of vehicles;
Improvement of stand-alone facilities whose purpose is not the education of children, including central office administration or operations or logistical support facilities; or
School modernization, renovation, or repair that is inconsistent with State law.

In addition, no Stabilization funds (either Education Stabilization funds or Government Services funds) may be used to provide financial assistance to students to attend private elementary or secondary schools, unless the funds are used to provide special education and related services to children with disabilities as authorized by the IDEA (Section 14011 of the ARRA).

There are also other prohibitions in section 1604 of the ARRA – for example, prohibitions against using funds for an aquarium, zoo, golf course, or swimming pool – that apply to the use of Stabilization funds by any entity.
The Maine Department of Education has prepared a short application containing assurances for each superintendent to sign. The link to the application is:

http://www.maine.gov/education/recovery/index.html

Please print the application and sign in the four required boxes and send back by May 20, 2009 to:

Jaci Holmes, Federal State Legislative Liaison, Maine Department of Education, State House Station #23, Augusta, Maine 04333.

Information on the American Recovery and Reinvestment Act for State Fiscal Stabilization can be found at the following website:

http://www.maine.gov/education/recovery/index.html

If you have any questions, contact Jaci Holmes at jaci.holmes@maine.gov or 624-6620.

An LEA may use Education Stabilization funds for construction of new school facilities as well as for modernization, renovation, or repair of existing facilities. See Question III-D-11 of the U. S. Department of Education Guidance of April 1, 2009 on the State Fiscal Stabilization Fund which is contained at. http://www.maine.gov/education/recovery/index.html

Jaci Holmes, Federal State Legislative Liaison, Maine Department of Education, State House Station #23, Augusta, Maine 04333.

Information on the American Recovery and Reinvestment Act for State Fiscal Stabilization can be found at the following website:

http://www.maine.gov/education/recovery/index.html

If you have any questions, contact Jaci Holmes at jaci.holmes@maine.gov or 624-6620.