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March 17, 2009

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What we got

Next Steps

FY 2009 Omnibus

FY 2010 Obama budget

Questions to Consider


This package includes MAJOR investments for education!

The biggest federal investment in history

More $ than the entire current U.S. Department of Education budget


56,000 e-mails to Congress through NEA LAC

Over 5,000 e-mails to state legislators

15,000 patch-thru calls to Members of Congress

279 personal Hill visits by NEA Board of Directors and affiliate leaders – more than ½ the Congress



Overall package = $787 billion

Spending totals = $575 billion

Tax cuts = $212 billion



NEA Stimulus email box: [email protected]

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White House Website:

USED ARRA webpage:

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Council of State Governments: American Council on Education: ment_Relations_and_Public_Policy&CONTENTID=31323& TEMPLATE=/CM/HTMLDisplay.cfm

10 has updated state information,

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including copies of state certifications: page 27 states and DC have officially said they want funds: AR, CA, CT, IL, KS, KY, LA, ME, MA, MI, MN, NV, NH, NM, NC, ND, OH, OK, OR, RI, SD, TX, UT, VA, WA, WI, WY Has links to 34 states’ websites


Education and related programs (including tax credit bonds) = $130.24 billion

U.S. Department of Education discretionary

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funding = $96.76 billion Current funding = $59.18 billion ARRA increase = 164%!

NEA national, state, and CD funding tables available at:



Title I Grants to LEAs = $10 billion (+72%)

School Improvement Grants = $3 billion (+611%)

Education Technology State Grants = $650 million (+243%)

Teacher Incentive Fund = $200 million (+206%)

State Data Systems = $250 million

Impact Aid school construction = $100 million

Education for homeless children = $70 million (+109%)


IDEA = $12.2 billion

New school modernization tax credit bonds

$22 billion ($11 billion for each of 2009 and 2010)


Head Start = $1 billion

Early Head Start = $1.1 billion

Child care Development Block Grant = $2 billion

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Pell Grants = $15.64 billion Also a mandatory funding increase of $1.47 billion Maximum award will increase by $500 to $5,350 (+10.3%) for 2009-10 school year.

College Work-Study = $200 million (+20.4%)


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Higher Education Teacher Quality = $100 million (+297%) New HEOA focuses these funds on pre Baccalaureate preparation of teachers and teacher residency programs


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National Science Foundation = $3 billion $2 billion for research $900 million for major research equipment and facilities $100 million for math/science education, scholarships

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Robert Noyce Scholarship Program: $60 million Math and Science Partnerships: $25 million Professional Science Master's Programs: $15 million


For 2009 and 2010 covers 100% of first $2000 in college costs; 25% of next $2000; $2500 maximum credit ($13.9

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billion) Increase from current $1800 HOPE tax credit Costs now includes books For undergrads at least half-time; covers all four years of undergrad

Upper-income eligibility limits:

adjusted gross income of up to $160,000 ($80,000 for singles)

up to $180,000 ($90,000 for singles) eligible to claim a partial credit

$1000 available as refundable credit for those without sufficient tax liability

Increased federal share of Medicaid spending

= $86.6 billion.

Available immediately and through 12/31/2010.

COBRA: new 65% federal subsidy for health insurance premiums--up to nine months for workers and their families laid off between Sept. 1, 2008 and Dec. 31, 2009 ($24.7 billion)

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“Making Work Pay” refundable tax credit $400 per person; $800 per family for 2009 and 2010 ($116.2 billion)

$250 one-time 2009 payment for retirees

($14.2 billion) Thanks to NEA, includes state and local employees not eligible for Social Security ($218 million)


State Fiscal Stabilization Fund - flexible funding through existing state education formulas = $53.6 billion

$39.5 billion for general fiscal relief for public school districts and public institutions of higher education


$8.8 billion for Governors "...for public safety and other government services, which may include assistance for elementary and secondary education and public institutions of higher education and for modernization, renovation, or repair of public school facilities and institutions of higher education facilities…”

$4.35 billion for State Incentive Grants

$650 million for Innovation Fund


Funds to be allocated to States (Governors)

State allocations: 61% based on share of population aged 5-24 and 39% based on share of overall population


Funds available for obligation through September 30, 2011

No later than 45 days after enactment (April 3, 2009), Governor must certify state will request and use funds

If Governor fails to request funds, state legislature can do so by adopting a resolution

State must maintain education spending at least at FY 06 level for each of Fiscal Years 2009, 2010, and 2011

For Higher ed, excludes capital projects or for research and development or tuition and fees paid by students

Secretary of Education may waive or modify requirement for each of those years

Fiscal years are as defined by state law


Primary use of $39.5 billion education fund:

Distribute funds through existing state funding formulas to restore school district and public college budgets in FY 2009, 2010, and 2011, to the to the greater of FY 2008 or FY 2009 level of State support, and

Where applicable, allow implementation of existing formula increases for elementary and secondary education for FY 2010 and 2011, and funding for phasing in State equity and adequacy adjustments, if enacted pursuant to State law prior to 10/1/08.


If funds insufficient to meet above then Governor allocates funds to K-12 and higher ed in “proportion to the relative shortfall in State support for each sector”

Any remaining funds to be distributed to LEAs via Title I formula

With approval of Secretary, State can use funds to meet HEOA Maintenance of Effort requirement


Funds received by LEAs can be spent for any purpose allowable under ESEA, IDEA, the Adult and Family Literacy Act, the Perkins Career and Technical Education Act, or for modernization, renovation or repair of public school facilities

Institutions of higher education can use funds for education and general expenditures, to mitigate the need to raise tuition and fees for in-state students, and for modernization, renovation or repair of facilities

excluding stadiums and religious facilities


States must meet assurances to get funds:

Address inequities in teacher distribution (already required by NCLB)

Establish statewide preK – postsecondary ed longitudinal data system (new requirement)

“information regarding the extent to which students transition successfully from secondary school to postsecondary education, including whether students enroll in remedial coursework”

Improve quality of NCLB academic assessments (already required by NCLB)


Improve State academic content standards and student academic achievement standards so students exit high-school ready for college, the 21 st century workforce, and the Armed Forces without remediation

Comply with corrective action and school restructuring provisions of AYP (already required by NCLB)


March 7: USED released guidance

Separate fact sheets on State Fiscal Stabilization Fund (SFSF), IDEA, and Title I

Guidance mostly focuses on timing of release of funds

Additional guidance and applications still to come


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Four Principles:

Spend funds quickly to save and create jobs.

“Pick up pink slips”

Improve student achievement through school improvement and reform. Ensure transparency, reporting and accountability.

Invest one-time ARRA funds thoughtfully to minimize the “funding cliff.” “Don’t expect to have as much money in FY 2011 or 2012.”


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State Fiscal Stabilization Fund Applications for the initial 67 percent of funds ($32.6 billion) will be available to Governors by the end of March, and funds will be made available by the Department within two weeks after receipt of an approvable application.

The Department expects to make available the remainder of the funds ($16 billion) during the period July 1 to September 30, 2009, conditioned on states providing additional information.


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State Fiscal Stabilization Fund If a state demonstrates that the amount of funds it will receive in phase one (67 percent of its total stabilization allocation) is insufficient to prevent the immediate layoff of personnel, the Department will award the state up to 90 percent of its allocation in phase one. In such cases, the remaining portion of the state's allocation will be provided after the Department approves the state's plan.


“streamlined” application by end of March

(1) must provide assurances that State will take

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actions to: (a) increase teacher effectiveness and address inequities in the distribution of highly qualified teachers; (b) establish and use pre-K-through-college and career data systems to track progress and foster continuous improvement; (c) make progress toward rigorous college- and career ready standards and high-quality assessments; and (d) support targeted, intensive support and effective interventions to turn around schools identified for corrective action and restructuring;


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(2) contains baseline data that demonstrates the state's current status in each of the four education reform areas; and

(3) includes a description of how the state intends to use its stabilization allocation.

Transparency in calculating state shortfall


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SFSF phase 2: Remaining funds released after the Department approves the state's plan detailing its strategies for addressing the education reform objectives described in the assurances. This plan must also describe how the state is implementing the record keeping and reporting requirements… More guidance to come phase-two funds will be awarded beginning July 1, 2009, on a rolling basis


USED overall discretionary increase = $3.43 billion (+5.8%)

These funds are in addition to the amounts in ARRA.

Together with ARRA increase of $96.8 billion, total FY 09 USED increase = $100.2 billion (+169%!!)


Career and Technical Education = no change

Bush proposed to eliminate

Pell Grants = +$3.073 billion (+21.6%)

Needed in addition to ARRA funds to raise maximum to $5,350

906,000 additional students to receive a Pell grant

Small increases for;

TRIO ($19.9 million)

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GEAR-UP ($9.8 million) Teacher Quality Enhancement ($16.3 million) International Education ($9.9 million)



President Obama on 2/26 released his FY 2010 budget outline. ndex.html

Very few funding details provided. But overall increase is only 1.1%.

Details not available until April.


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“Expands Pell Grants and Puts the Program on Sure Footing.” Maximum award increases to $5,550. Program made mandatory with maximum award indexed to inflation plus 1%.

“Stabilizes the Student Loan Program for

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Students and Saves Billions of Dollars for Taxpayers.” Eliminates loans through private lenders - all loans will be direct loans from federal gov’t.

Saves $4 billion/year


“Focuses on College Completion.”

Creates a new five-year, $2.5 billion Access and Completion Incentive Fund to support innovative State efforts to help low-income students succeed and complete their college education.

Restructures and expands the Federal Perkins

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Loan Program Loan volume will increase form $1 billion to $6 billion Colleges and universities participating would increase from 1,800 to 4,400



1. Has your Governor submitted a certification that he/she will request ARRA funds?

2. Who is in charge in your state: Governor, a recovery “czar”, state legislature?

3. Has Governor decided if he/she will spend state stabilization funds in each of fiscal years 2009, 2010, 2011, or instead concentrate funds this year?


4. Has state calculated its shortfall in “state support” for K-12 and higher ed?

5. Is state planning to use SFSF money to supplant planned education funding?

6. Has state decided how it will allocate funds to public institutions of higher education?

7. Are stabilization funds enough to cover total state level education shortfall?


8. Will state ask for 90% of funds in phase 1?

9. Has state made preliminary allocations to school districts and public institutions of higher education?

10. Who will decide how to spend the 18.2% in flexible funds – will any be spent on education? Higher education? School modernization?


11. Will state request a waiver of SFSF FY 2006 Maintenance of Effort requirement?

12. Who will decide local uses of SFSF $?

13. Is money enough to prevent all layoffs, budget cuts?

14. Will SFSF funds be used to supplant state or local funds?


15. Will any money be spent by institutions on repairs/modernization?

16. Are there plans on what to do once SFSF $ is gone?

17. How will SFSF impact collective bargaining agreements?

18. What is the role of your association in all of the above?