69ý

Special Report
Federal

Stimulus Aid to Go Out in Phases, Guidelines Say

By Alyson Klein & Michele McNeil — March 09, 2009 3 min read
  • Save to favorites
  • Print
Email Copy URL

The eagerly awaited on some $100 billion in stimulus funding for education aim to pump money out quickly, while giving the U.S. Department of Education leverage to demand improvements from states and districts.

The biggest single restriction in the guidelines issued March 7 involves the $53.6 billion State Fiscal Stabilization Fund, the bulk of which is aimed at steadying faltering state budgets. States won’t get all of their stabilization funds at once. Instead, 67 percent—or about $32 billion—will go out within two weeks of a state’s submission of its application.

The rest will go out state by state as the department approves states’ plans to comply with the assurances required under the law that they take steps to increase teacher quality, build better data systems, improve standards and assessments, and turn around failing schools.

However, states that are in particularly dire straits and in danger of laying off employees could receive up to 90 percent of their stabilization funding in the first allocation. In each of those cases, the rest of the state’s share would be provided after the Education Department approved its plan.

The aim is to have states balance the need to spur the economy by creating or saving jobs with the desire to direct money toward efforts to boost student achievement that can be sustained even if the bulk of the stimulus money doesn’t become part of the federal baseline of K-12 aid.

“These funds will be distributed as quickly as possible to save and create jobs and improve education, and will be invested as transparently as possible so we can measure the impact in the classroom,” U.S. Secretary of Education Arne Duncan said in a statement. “Strict reporting requirements will ensure that Americans know exactly how their money is being spent and how their schools are being improved.”

The department is using a similar strategy with the $10 billion in stimulus money for Title I programs to help disadvantaged students, and $11.7 billion for special education state grants, all of which will be spread out over two years.

Fifty percent of the Title I and special education funds provided under the stimulus measure, known as the American Recovery and Reinvestment Act, will be available by the end of March.

Although those programs have long been a cornerstone of federal funding for education, the new allocations are a considerable boost over the usual baseline. For instance, Title I received about $13.9 billion in fiscal 2008, while special education got $10.9 billion.

Additional guidelines are expected in the coming weeks.

Beware ‘Funding Cliff’

The guidance stresses that the stimulus funding is short-term money that may not be sustainable in future budgets. It emphasizes that districts and states should use the money for shorter-term investments so there isn’t a “funding cliff.”

For instance, the Education Department recommends that Title I funds be used to expand prekindergarten programs, bolster online learning, or offer new opportunities for teacher professional development.

Still, analysts say it may be difficult for states and districts to develop programs that will put the stimulus funds to good use without setting up expectations for future spending.

“I think that’s one of the trickiest provisions in the law,” said Thomas Toch, a co-director of Education Sector, a think tank in Washington. “Politically, it’s a killer [to put] money into programs, then pull the rug out from under them two years later.”

In the next 30 days, nearly $700 million more in stimulus money will be available for a variety of programs, including vocational-rehabilitation state grants.

And $17.3 billion for Pell Grants and college work-study programs is available for the next academic year, beginning July.

A version of this article appeared in the March 18, 2009 edition of Education Week

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
AI and Educational Leadership: Driving Innovation and Equity
Discover how to leverage AI to transform teaching, leadership, and administration. Network with experts and learn practical strategies.
Content provided by 
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School Climate & Safety Webinar
Investing in Success: Leading a Culture of Safety and Support
Content provided by 
Assessment K-12 Essentials Forum Making Competency-Based Learning a Reality
Join this free virtual event to hear from educators and experts working to implement competency-based education.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.

Read Next

Federal From Our Research Center How Educators Say They'll Vote in the 2024 Election
Educators' feelings on Vice President Kamala Harris and former President Donald Trump vary by age and the communities where they work.
4 min read
Jacob Lewis, 3, waits at a privacy booth as his grandfather, Robert Schroyer, fills out his ballot while voting at Sabillasville Elementary School, Nov. 8, 2022, in Sabillasville, Md.
Jacob Lewis, 3, waits at a privacy booth as his grandfather, Robert Schroyer, fills out his ballot while voting at Sabillasville Elementary School, Nov. 8, 2022, in Sabillasville, Md.
Julio Cortez/AP
Federal Q&A Oklahoma State Chief Ryan Walters: 'Trump's Won the Argument on Education'
The state schools chief's name comes up as Republicans discuss who could become education secretary in a second Trump administration.
8 min read
Ryan Walters, then-Republican candidate for Oklahoma State Superintendent, speaks at a rally, Nov. 1, 2022, in Oklahoma City.
Ryan Walters speaks at a rally on Nov. 1, 2022, in Oklahoma City as a candidate for state superintendent of public instruction. He won the race and has built a national profile for governing in the MAGA mold.
Sue Ogrocki/AP
Federal Why Trump and Harris Have Barely Talked About 69ý This Election
Kamala Harris and Donald Trump haven't outlined many plans for K-12 schools, reflecting what's been the norm in recent contests for the White House.
6 min read
Republican presidential nominee former President Donald Trump and Democratic presidential nominee Vice President Kamala Harris participate during an ABC News presidential debate at the National Constitution Center, Tuesday, Sept.10, 2024, in Philadelphia.
Republican presidential nominee former President Donald Trump and Democratic presidential nominee Vice President Kamala Harris participate in an ABC News presidential debate at the National Constitution Center on Sept.10, 2024, in Philadelphia.
Alex Brandon/AP
Federal Who Could Be Donald Trump's Next Education Secretary?
Trump must decide if he wants someone with a "proven track record" or a "culture warrior," says a former GOP Hill staffer.
9 min read
President Donald Trump, right, arrives in a classroom at St. Andrew Catholic School in Orlando, Fla., on March 3, 2017.
President Donald Trump, right, arrives in a classroom at St. Andrew Catholic School in Orlando, Fla., on March 3, 2017.
Joe Burbank/Orlando Sentinel via AP