The $787 billion economic-stimulus bill that President Barack Obama signed into law today presents an unprecedented opportunity鈥攁nd an unprecedented management challenge鈥攆or new U.S. Secretary of Education Arne Duncan.
Cash-strapped states, districts, and schools are eager for their shares of federal support under the measure, which includes some $115 billion in precollegiate and higher education aid. That sum includes substantial increases for Title I grants to help disadvantaged students, an increase in special education money, and a nearly $54 billion fund to help make up for dramatic cuts in state-level support to schools.
Secretary Duncan鈥攚ho has not yet filled top political jobs at the Department of Education, including a deputy secretary and undersecretary鈥攚ill have to make sure all that money is sent to states, and in turn, to districts, in a timely fashion. Aides to Democrats in the U.S. House of Representatives say they hope a sizable chunk will make its way to states before July 1.
SOURCE: Education Week
Mr. Duncan also is in the enviable but high-pressure position of overseeing $5 billion in discretionary grants that will be given to states, school districts, and nonprofit organizations for school improvement.
That money, which Mr. Duncan has dubbed the 鈥淩ace to the Top Fund,鈥� includes incentive grants to states that have made progress in raising their standards, closing achievement gaps between poor and minority students and their more-advantaged peers, or ensuring that highly qualified, effective teachers aren鈥檛 concentrated only in wealthy suburban areas.
Mr. Duncan will also have wide latitude in awarding up to $650 million in 鈥渋nnovation grants,鈥� which will go to districts, groups of districts, and nonprofits that are making gains in student achievement. Mr. Duncan said the money can help 鈥渟cale up what works.鈥�
But the grant process for those two pots of money could present some political pitfalls, said Margaret Spellings, who served as U.S. secretary of education during President George W. Bush鈥檚 second term.
鈥淭he opportunity for misdeeds and so forth is high with this big amount of money. It just is,鈥� she said in an interview before the stimulus bill became final. There must be 鈥渟trict grant criteria to wring the politics out of the process,鈥� she said. 鈥淚f I had a nickel for every member of Congress who called me up and said, 鈥榃on鈥檛 you look kindly on [a particular grant application]?鈥� 鈥� A good administrator has to guard against that.鈥�
Ms. Spellings, now a private consultant in Washington, spoke highly of her successor鈥檚 capabilities, but pointed out that he doesn鈥檛 yet have his team in place.
鈥淎s hard-working as the department鈥檚 career staff are, the people who are ultimately accountable are the political appointees,鈥� she said.
Hurdles Loom
Secretary Duncan appears well aware of those challenges.
鈥淲e have to implement and execute this in an absolutely impeccable manner,鈥� he told about 500 people from education organizations during a Feb. 11 conference call. 鈥淲e鈥檙e going to be very closely scrutinized.鈥�
And, in an interview with Education Week last month, he said he was looking for good managers to serve in top roles at the Education Department. (鈥淓ducation Aid in Stimulus Raises Eyebrows,鈥� Feb. 4, 2009.)
Meanwhile, school districts and education organizations already are pressing for more details on how much money they will receive and when. Some advocates for districts are worried there aren鈥檛 explicit provisions in the legisation, known as the American Recovery and Reinvestment Act, that require states to get the money out quickly to districts.
Secretary Duncan said in a separate conference call with reporters last week that the department plans to be 鈥渧ery fast, but also be very smart鈥� in allocating the money and will give states 鈥渞eal guidance around speed.鈥� He wasn鈥檛 specific about what those guidelines might look like.
Under the new law, the secretary is given authority to waive so-called 鈥渕aintenance of effort鈥� provisions, which require states to keep up spending at the level of fiscal 2006 to be eligible for money from a $53.6 billion state fiscal-stabilization fund. That fund is intended to help states shore up their budgets and restore education funding cuts.
The measure allows Secretary Duncan to waive the requirement for states in particularly dire economic circumstances, but it will be up to the Education Department to determine just which states are eligible for such an exception.
Some states, including Florida, which faces a yawning budget deficit, have already signaled that they will be asking for waivers. In the conference call with reporters, an Education Department consultant said that federal officials will examine states鈥� specific circumstances and don鈥檛 want to issue a 鈥渙ne-size-fits-all鈥� blanket waiver.
Accountability Demands
And Secretary Duncan will have to hold school officials accountable for following through on 鈥渢ransparency鈥� requirements in the stimulus measure, which call for schools to give public notice, on the Internet, of how the funds are being used.
Some pieces of the stimulus package may be tough for the department to enforce. For instance, to be eligible for all of the money in the $53.6 billion stabilization fund, states must assure the department that they will make progress in key education reform areas, including improving student assessments and teacher effectiveness. But there鈥檚 nothing in the legislation that spells out penalties for failing to make progress.
The Education Department consultant, who spoke on condition of anonymity, acknowledged as much, but pointed out that the education secretary鈥檚 $5 billion discretionary fund could be an enticing carrot. The secretary is supposed to award the grants based on progress made on those key education assurances. If a small number of states make big progress on those goals, they stand to gain an sizable additional chunk of money.
鈥淎ll of these provisions are really powerful,鈥� the adviser said.
Education Week Assistant Editor Michele McNeil contributed to this story.
