State Fiscal Stabilization Fund
The economic recovery bill creates a “State Fiscal Stabilization Fund” to help state and local governments avoid budget cuts. The Stabilization Fund provides a $39.5-billion grant earmarked for education and an $8.8-billion grant to help fund other key services.
(The Stabilization Fund also includes about $5 billion for incentive grants and other purposes, for a total of $53.6 billion.)
How the Money is Allocated to Each State
Sixty-one percent of the funds are allocated by each state’s population aged 5 to 24. The remaining 39 percent of funds are allocated based on total state population. Out of each state’s allocation based on these measures, 81.8 percent is reserved for the education block grant, and 18.2 percent is considered the “flexible” grant.
How the Money is to be Spent
The $39.5 billion in education grants would support K-12 and higher education during state fiscal years 2009, 2010, and 2011. A portion of the funds would be dedicated to helping states maintain K-12 and higher education funding; the remainder would flow directly to local school districts. The funds are available to states immediately, and must be spent within two years of receipt of the grant.
State Incentive Grants
States would have to apply for the incentive grants and show they have made progress on initiatives such as improving the distribution of teachers between high-poverty and low-poverty schools or establishing longitudinal data systems. For states receiving these grants, half of the funds must be passed through to local governments.
Key Target Areas of ARRA Education Funds
ARRA funds should be used to improve student achievement and address four specific areas.
1. Making progress toward rigorous college- and career-ready standards and high-quality assessments that are valid and reliable for all students, including English language learners and students with disabilities;
2. Establishing pre-K-to college and career data systems;
3. Making improvements in teacher effectiveness and in the equitable distribution of qualified teachers for all students, particularly students who are most in need;
4. Providing intensive support and effective interventions for the lowest-performing schools.
Educational Goals of the Obama Administration
1. Reform No Child Left Behind: Obama and Biden will reform NCLB, which starts by funding the law. Obama and Biden
will also improve NCLB’s accountability system so that we are supporting schools that need improvement, rather than
punishing them.
2. Make Math and Science Education a National Priority: Obama and Biden will recruit math and science degree graduates to the teaching profession and will support efforts to help these teachers learn from professionals in the field. They will also work to ensure that all children have access to a strong science curriculum at all grade levels.
3. Address the Dropout Crisis: Obama and Biden will address the dropout crisis by passing legislation to provide funding
to school districts to invest in intervention strategies in middle school.
4. Expand High-Quality Afterschool Opportunities: Obama and Biden will double funding for the main federal support
for afterschool programs, the 21st Century Learning Centers program, to serve one million more children.
5. Support College Outreach Programs: Obama and Biden support outreach programs like GEAR UP, TRIO and Upward
Bound to encourage more young people from low-income families to consider and prepare for college.
M.H. West & Co., Inc. is a proud member of the following educational organizations:
National Head Start Association
National Alliance of Black School Educators
National Association of Elementary School
National Association of Secondary School Principals
Virginia Association of Elementary School Principals
Resources Used for this article:
Center on Budget and Policy Priorities
U.S. Department of Education
www.recovery.gov
www.principals.org