THE FEDERAL ROLE IN DEALING WITH PUBLIC EDUCATION …

Report
March 17, 2009
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Congratulations
What we got
Next Steps
FY 2009 Omnibus
FY 2010 Obama budget
Questions to Consider
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This package includes MAJOR investments for
education!
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The biggest federal investment in history
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More $ than the entire current U.S. Department
of Education budget
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56,000 e-mails to Congress through NEA LAC
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Over 5,000 e-mails to state legislators
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15,000 patch-thru calls to Members of
Congress
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279 personal Hill visits by NEA Board of
Directors and affiliate leaders – more than ½
the Congress
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Overall package = $787 billion
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Spending totals = $575 billion
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Tax cuts = $212 billion
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NEA Stimulus email box:
[email protected]
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NEA.org page:
◦ http://www.nea.org/home/ns/29549.htm
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White House Website:
http://www.recovery.gov
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USED ARRA webpage:
http://www.ed.gov/policy/gen/leg/recovery/index.html
Council of State Governments:
http://www.staterecovery.org/
American Council on Education:
http://www.acenet.edu/AM/Template.cfm?Section=Govern
ment_Relations_and_Public_Policy&CONTENTID=31323&
TEMPLATE=/CM/HTMLDisplay.cfm
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Recovery.gov has updated state information,
including copies of state certifications:
◦ http://www.recovery.gov/?q=content/state-recoverypage
◦ 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
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Education and related programs (including tax
credit bonds) = $130.24 billion
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U.S. Department of Education discretionary
funding = $96.76 billion
◦ Current funding = $59.18 billion
◦ ARRA increase = 164%!
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NEA national, state, and CD funding tables
available at: http://www.nea.org/home/29549.htm
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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%)
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IDEA = $12.2 billion
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New school modernization tax credit bonds
◦ $22 billion ($11 billion for each of 2009 and
2010)
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Head Start = $1 billion
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Early Head Start = $1.1 billion
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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.
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College Work-Study = $200 million (+20.4%)
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Higher Education Teacher Quality = $100
million (+297%)
◦ New HEOA focuses these funds on preBaccalaureate 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
 Robert Noyce Scholarship Program: $60 million
 Math and Science Partnerships: $25 million
 Professional Science Master's Programs: $15 million
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For 2009 and 2010 covers 100% of first $2000 in
college costs; 25% of next $2000; $2500 maximum
credit ($13.9 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
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Increased federal share of Medicaid spending
= $86.6 billion.
◦ Available immediately and through 12/31/2010.
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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)
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$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)
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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
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◦ $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
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Funds to be allocated to States (Governors)
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State allocations: 61% based on share of
population aged 5-24 and 39% based on share
of overall population
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Funds available for obligation through
September 30, 2011
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No later than 45 days after enactment (April 3,
2009), Governor must certify state will request
and use funds
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If Governor fails to request funds, state
legislature can do so by adopting a resolution
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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
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Secretary of Education may waive or modify
requirement for each of those years
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Fiscal years are as defined by state law
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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.
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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”
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Any remaining funds to be distributed to
LEAs via Title I formula
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With approval of Secretary, State can use
funds to meet HEOA Maintenance of Effort
requirement
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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
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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
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 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)
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◦ Improve State academic content standards and
student academic achievement standards so
students exit high-school ready for college, the 21st
century workforce, and the Armed Forces without
remediation
◦ Comply with corrective action and school
restructuring provisions of AYP (already required by
NCLB)
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March 7: USED released guidance
www.ed.gov
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.
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“streamlined” application by end of March
◦ (1) must provide assurances that State will take
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 careerready 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 recordkeeping and reporting requirements…
◦ More guidance to come
◦ phase-two funds will be awarded beginning July 1,
2009, on a rolling basis
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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%!!)
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Career and Technical Education = no change
◦ Bush proposed to eliminate
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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
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Small increases for;
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TRIO ($19.9 million)
GEAR-UP ($9.8 million)
Teacher Quality Enhancement ($16.3 million)
International Education ($9.9 million)
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President Obama on 2/26 released his FY 2010
budget outline.
http://www.ed.gov/about/overview/budget/budget10/i
ndex.html
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Very few funding details provided. But overall
increase is only 1.1%.
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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%.
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“Stabilizes the Student Loan Program for
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
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“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.
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Restructures and expands the Federal Perkins
Loan Program
◦ Loan volume will increase form $1 billion to $6 billion
◦ Colleges and universities participating would
increase from 1,800 to 4,400
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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?
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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?
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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?
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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?
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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?
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