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42nd Annual Spring ConferenceSD Assoc. of School Business Officials

State Aid & American Recovery and Reinvestment Act 2009

Presenters:Deene Dayton, Dept. of Legislative AuditBobbi Leiferman & Susan Woodmansey, Dept. of Education

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STATE AID INFORMATION

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FY2010 State Aid Per student allocation for FY2010 is $4,804.60 (+ SSA) General Fund levies:

Agricultural levy $2.573 Non-Ag Z levy $3.573 Owner-Occupied $4.042 Other Non-Ag $8.656

Increasing/Decreasing Enrollment funding continues Special Education Disability Funding Levels – no

increase ARRA funds will annually be excluded from excess

general fund balance calculations Maximum sparsity payment in FY2010 is $123,750. TCAP funding discontinued in FY2010.

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Flexibility for Capital Outlay Fund (SB 91)

SDCL 13-16-6 was amended to add the following: During the period of time beginning on July 1, 2009, and ending on

June 30, 2012, any school district may make payments from its capital outlay fund for the purchase of property insurance and casualty insurance, for payments for energy costs and the cost of utilities, and for motor fuel or for any portion of a contract providing transportation to students or for any mileage reimbursements. However, the total amount that a school district expends from its capital outlay fund for these expenses may not exceed forty-five percent of the total tax revenues deposited in that fund during the current school fiscal year, and for any school district with a current tax levy for the capital outlay fund that is greater than its tax levy for the capital outlay fund in school fiscal year 2008, the total amount expended from the capital outlay fund for these expenses may not exceed forty-five percent of the total tax revenues that would have been deposited in that fund during the current school fiscal year if the tax levy for the capital outlay fund had not been increased since 2008.

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Resources for FY2010 Budgeting FY2010 State Aid (General / SE / Sparsity /

Consolidation Incentive) http://doe.sd.gov/ofm/stateAid/SchoolBudget/index.asp

History of Levies and PS Allocations

http://doe.sd.gov/stateaid/documents/GFLeviesthru2010.xls

Excess General Fund Balance Information (request for exemption form, base percentages)http://doe.sd.gov/ofm/stateAid/EGF/index.asp

American Recovery & Reinvestment Act of 2009http://doe.sd.gov/stimulus/

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STATE FISCAL STABILIZATION FUNDS

American Recovery & Reinvestment Act of 2009

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District Uses of SFSF Funds Cautionary Note: All of the uses identified in this Illustration are subject to ARRA and other applicable requirements, including prohibitions relating to the uses of funds

Basic Rule A district may use its Education Stabilization funds for any activities authorized under the ESEA, the IDEA, the AEFLA, or the Perkins Act.

Governor’s Control A Governor does not have the discretion to direct how an district must use its Education Stabilization Funds.

Education activities consistent with State and local requirementsA district may use its Education Stabilization allocation for such purposes because these activities are authorized under Title VIII of the ESEA (Impact Aid). NOTE: The district must maintain records that track separately the specific uses of the funds.

Modernization, renovation, and repair of public school facilitiesSection 14003(a) of the ARRA expressly authorizes a district to use Education Stabilization funds for this purpose.

ConstructionConstruction is allowable as an authorized activity under Title VIII of the ESEA (Impact Aid).

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A District may not use Education Stabilization 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; Improvement of stand-alone facilities whose purpose is not

the education of children, including central office administration or operations or logistical support facilities;

Financial assistance for students to attend private elementary or secondary schools, unless the funds are used to provide special education and related services to students with disabilities, as authorized by the IDEA;

School modernization, renovation, or repair that is inconsistent with State law; or

Restoring or supplementing a “rainy day” fund.

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Application to Receive SFSF (posted on website)Application to Receive ARRA-State Fiscal Stabilization Funds (SFSF)

Name of School District _________________________________________DUNS # _________________________________________Name of Authorized Official _________________________________________

The funding received from SFSF are intended to meet the overall goals of the American Recovery and Reinvestment Act of 2009 (ARRA) Public Law 111-5. ARRA funds are subject to additional and more rigorous reporting requirements. All revenues and expenditures from these funds need to be tracked and reported separately on a quarterly basis.

ASSURANCES & CERTIFICATION STATEMENT:The above named school district assures the South Dakota Department of Education that

these funds will be administered in compliance with all state and federal laws and regulations (including assurances in section 442 of the General Education Provisions Act, GEPA, 20 U.S.C.1232e) applicable to the use of these funds. The board of the above named school district has authorized me as its representative to file this application.

________________________________________Signature & Title of Authorized Official________________________Date

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Accounting for SFSF

Funds received from ARRA-SFSF may be used for any approved ESEA activity: May be receipted and expended from general, capital

outlay, special education, pension or food service funds.

Funding received must be expended in timely manner to avoid federal cash management concerns.

Quarterly reports must be filed within 10 days of the close of the quarter.

DOE is planning to release SFSF funds biannually in FY2010.

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ARRA Revenue CodesNew School District Revenues Codes Effective FY2009:

Revenue Code Name CFDA # Description

4195 ARRA-Title I Grant to LEA 84.389A

Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for the educational needs of disadvantaged students (Title I, Part A ESEA of 1965).

4196 ARRA - IDEA, Part B, 611 84.391A

Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for special education and related services.

4197ARRA - IDEA, Part B, 619 Preschool 84.392A

Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for preschool special education and related services.

4198 ARRA - School Lunch Equip 10.579

Revenue received under the American Recovery and Reinvestment Act 2009 to obtain or replace equipment for school food service programs.

4199ARRA - State Fiscal Stabilization Funds 84.394

Revenue received under the American Recovery and Reinvestment Act 2009 to provide relief to state and local government budgets in order minimize and avoid reductions in education.

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Coding/Uses/Expenditures of SFSF SFSF Revenue code = 4199, may be receipted to “any”

K-12 fund. Use of SFSF funding in FY09 must be for expenditures

incurred AFTER February 17, 2009 (date bill was signed). Expenditures tracked separately by use of accounting

“operational unit” (3rd or 5th level of Software Unlimited). Permissible to use GJ entry to record expenditures

(FY2009 & FY2010) GJ entry such as the below for elementary teacher salaries:

CREDIT 10-000-1111-110 (local expenditure) DEBIT 10-001-1111-110 (SFSF expenditure)

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Coding/Uses/Expenditures of SFSF Supplementing your FY09 budget is only needed if

SFSF is expended under a function for which there is no budget (breakout of expenditures for an existing function does not require a budget supplement).

DOE planning to release SFSF in FY2010 in two payments (November and May).

FY2010 SFSF should be included in both the means of finance and appropriation sides of your district budget.

With biannual revenue payments from DOE the GJ entries should coincide with payments and quarterly SFSF expenditure reporting requirements.

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Impact on FY09 Accounting State Fiscal Stabilization Funds (SFSF) will be

recognized in the May state aid payment, for more information please see the below web site:http://doe.sd.gov/ofm/stateAid/index.asp

SFSF application needs to be completed and submitted by May 15th, application form is posted to the above website.

Application will cover both FY2009 and FY2010. Quarterly reports are required to be filed within 10

days of the end of a quarter – 1st quarterly report deadline (for FY09 funding) would be due July 10, 2009.

Revenues received in FY09 must be expended in FY09 to meet federal cash management requirements.

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IDEA - Transfer of 50% Increase Federal regulations allow for districts to transfer state and/or

local funds not to exceed 50% of the annual increase in IDEA allocations. FY09 allocation = $100,000 FY2010 allocation (incl ARRA) = $180,000 (increase of $80,000) Allowable transfer = $40,000

Currently state statutes are MORE restrictive on the transfer of SE state & local funds – therefore it is NOT currently permissible.

DOE will propose legislation in 2010 Legislative Session to allow use of this flexibility. (earliest possible effective date would be end of January, 2010).

If legislation is passed – districts could transfer state and/or local funds from SE to other district funds based on this allowance in federal regulations.

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SD Statute Changes Needed to Purchase Equipment for SE Program: IDEA federal regulations allow funds to be expended to

purchase equipment for the SE program. State statutes are again MORE restrictive than the federal

regulations and therefore until a statute change is effective no SE funds may be used to purchase SE equipment (even those less than $1,000). See SDCL 13-37-8.10 and 13-16-6. 13-37-8.10. Payments received by a school district for special

education, including minimum foundation funds, based upon tuition paid for children in need as provided in chapter 13-37, shall be credited to the special education fund of the school district.

13-16-6. The capital outlay fund of the school district is a fund provided by law to meet expenditures which result in the acquisition of or lease of or additions to real property, plan or equipment…….Any purchase of one thousand dollars or less may be paid out of the general fund. …..

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Suggested Expenditures for IDEA ARRA Funds

Professional development for SE teachers Retain teachers, aides and related service

providers Short-term out-of-district behavioral evaluations Needed assistive technology based on student

IEPs and follow up training for staff and student Collaborate with Head Start for placement of

children with special needs Purchase needed instructional software and/or

instructional materials for children with special needs

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More ARRA Information

http://www.ed.gov/programs/statestabilization/legislation.html

http://doe.sd.gov/stimulus/

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Special Education Maintenance of Effort (MOE)