State Fiscal Stabilization Fund (sfsf) - Education State Grants, Recovery Act (84.394)

Program

84.394 State Fiscal Stabilization Fund (sfsf) - Education State Grants, Recovery Act

Federal Agency

Agency: Department of Education

Authorization

American Recovery and Reinvestment Act of 2009 (ARRA), Division A, Title XIV , Public Law 111-5.

Program Number

84.394

Last Known Status

Active

Objectives

To support and restore funding for elementary, secondary, and postsecondary education and, as applicable, early child hood education programs and services in States and local educational agencies.

Types of Assistance

Formula Grants

Uses and Use Restrictions

States must first use this grant to provide any funds needed: (a) to restore State elementary and secondary education support for fiscal years 2009, 2010, and 2011 to the greater of the fiscal year 2008 or 2009 level; (b) to allow existing State formula increases to support elementary and secondary education for fiscal years 2010 and 2011 to be implemented and allow funding for phasing in State equity and adequacy adjustments, if such increases were enacted prior to October 1, 2008; and (c) to restore support for public institutions of higher education (IHEs) for fiscal years 2009, 2010, and 2011 to the greater of fiscal year 2008 or 2009, excluding tuition and fees paid by students. If there is insufficient funding to carry out this activity for each fiscal year, the Governor must allocate funds in proportion to the relative shortfall in State support for each education sector. States must use any remaining funds to provide local educational agencies (LEAs) with subgrants based on their relative shares of funding under Title I, Part A of the Elementary and Secondary Education Act of 1965 (ESEA).

LEAs that receive funds may use funds for activities authorized under the ESEA, the Individuals with Disabilities Education Act (IDEA), the Adult and Family Literacy Act, and the Carl D. Perkins Career and Technical Education Act of 2006 (Perkins).

LEAs are prohibited from using 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; or improvement of stand-alone facilities whose purpose is not the education of children including central office administration or operations or logistical support facilities.

IHEs are prohibited from using the funds: to increase endowments; for the maintenance of systems, equipment, or facilities; for the modernization, renovation, or repair of stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; or the modernization, renovation, or repair of facilities used for sectarian instruction or religious worship or in which a substantial portion of the functions of the facilities are subsumed in a religious mission.

Public IHEs receiving funds must use these funds for educational and general expenditures, and in such a way as to mitigate the need to raise tuition and fees, or for modernization, renovation, or repairs of facilities that are primarily used for instruction, research, or student housing.

Eligibility Requirements

Applicant Eligibility

None

Beneficiary Eligibility

None

Credentials/Documentation

No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. The Governor must submit an application to the Department of Education (ED) containing assurances that the State will: (a) maintain support for elementary, secondary, and postsecondary education for FY 2009, 2010, and 2011 at the FY 2006 level; (b) take actions to address inequities in the distribution of highly qualified teachers; (c) improve the collection and use of educator data: (d) enhance the quality of the State�s academic standards and assessments; (e) include limited English proficient students and students with disabilities in State assessments; and (f) take actions to turn around schools identified for corrective action, and restructuring under Title I, Part A of the ESEA, 20 U.S.C. 6301 et seq. Each State must also provide baseline data that demonstrates its current status in each of the areas described in the assurances referenced above, a description of how it intends to use its allocation, and other information as the Secretary may require.

Award Procedure

The Department will make awards to States on a formula basis upon approval of the State application.

Deadlines

Jul 01, 2009

Range of Approval/Disapproval Time

Approval time will vary by State.

Appeals

Not Applicable.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title XIV, Section 14001.

Matching Requirements: 61 percent of State allocations is based on relative shares of individuals aged 5 to 24, and 39 percent is based on relative shares of total population. The Department awards up to one-half of 1 percent of the appropriated funds to the outlying areas.

This program has MOE requirements, see funding agency for further details.

Length and Time Phasing of Assistance

Any funds that the Governor does not subgrant or otherwise commit within 2 years will be reobligated. Funds are available for obligation until September 30, 2011. The Department will reallocate any returned funds to the remaining States. See the following for information on how assistance is awarded/released: Electronic transfer.

Post Assistance Requirements

Reports

For each year of the program, a State receiving funds under this title must submit a report to the Department that describes the uses of funds provided under this title within the State; the distribution of funds received; the number of jobs saved or created; tax increases averted; the State�s progress in reducing inequities in the distribution of highly qualified teachers, developing a longitudinal data system, and implementing valid assessment; actions taken to limit tuition and fee increases at public IHEs; the extent to which public IHEs maintained, increased, or decreased enrollments of in-State students; and a description of each modernization, renovation and repair project funded. Specific reporting requirements are detailed in Division A,Title XV of ARRA. Cash reports are not applicable. Progress reports are not applicable. Expenditure reports are required in accordance with guidance from OMB and the Department. Performance monitoring is not applicable.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. All grantees are subject to the provisions of the Single Audit Act, 31 USC 75, and OMB Circular A-133.

Records

Each recipient must maintain records that fully disclose the total cost of the activity for which the funds are used, the share of the cost provided from other sources, and other such records as will facilitate an effective financial or programmatic audit. The recipient must maintain such records for 3 years after the completion of the activity for which funds are used.

Program Accomplishments

Not Applicable.

Financial Information

Account Identification

91-1909-0-1-501.

Obligations

(Formula Grants) FY 08 $0; FY 09 est $39,743,348,000; FY 10 est $0

Range and Average of Financial Assistance

Awards to States will vary in size from approximately $67.6 million to $4.9 billion. The average grant award will be approximately $760 million.

Regulations, Guidelines and Literature

Guidance for this program can be found at http://www.ed.gov/programs/statestabilization/applicant.html.

Related Programs

84.395 State Fiscal Stabilization Fund (SFSF) - Race-to-the-Top Incentive Grants, Recovery Act; 84.396 State Fiscal Stabilization Fund (SFSF) - What Works and Innovation Fund, Recovery Act; 84.397 State Fiscal Stabilization Fund (SFSF) - Government Services, Recovery Act

Information Contacts

Regional or Local Office

None.

Headquarters Office

James Butler Office of Elementary and Secondary Education, Department of Education, 400 Maryland Ave., S.W., Washington, District of Columbia 20202 Email: James.Butler@ed.gov Phone: (202) 260-9737

Web Site Address

http://www.ed.gov/programs/statestablization

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not Applicable.