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Connecticut State Department Connecticut State Department of Educationof Education

American Recovery and Reinvestment American Recovery and Reinvestment Act (ARRA):Act (ARRA):

Bureau of Special EducationBureau of Special EducationTeleconferenceTeleconferenceMay 21, 2009May 21, 2009

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ARRA Goals and AssurancesARRA Goals and AssurancesIn order to apply for ARRA funds, the GovernorIn order to apply for ARRA funds, the Governor

must provide USDE with written assurances that CTmust provide USDE with written assurances that CT

has addressed and will continue to improve upon:has addressed and will continue to improve upon:

ARRA GoalsARRA Goals1.1. Academic Standards and Assessments of Student Academic Standards and Assessments of Student

Learning and AchievementLearning and Achievement

2.2. Equitable Distribution of Quality TeachersEquitable Distribution of Quality Teachers

3.3. Data Systems to Track Student PerformanceData Systems to Track Student Performance

4.4. School Improvement Initiatives for Schools and School Improvement Initiatives for Schools and Districts in Need of Improvement Districts in Need of Improvement

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Use of Entitlement ARRA Funds

Connecticut’s recommended four priority categories Expanded learning time Professional development/technical assistance Increased capacity Direct services to students and parents

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Use of Entitlement ARRA Funds

Aligned with the three State Board of Education priorities:

1. High quality preschool education for all

2. High academic achievement for all students in reading, writing, mathematics, and science

3. High school reform, so all students graduate and are prepared for lifelong learning and careers in a competitive, global economy

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Sources of ARRA Funds for Sources of ARRA Funds for 2009 - 20112009 - 2011

Three primary sources of ARRA funds are available to states:Three primary sources of ARRA funds are available to states:SourceSource CT’s AwardCT’s Award

Stabilization Block GrantsStabilization Block Grants $542 million$542 million Entitlement GrantsEntitlement Grants $243 million$243 million Competitive Grants TBD*Competitive Grants TBD*

• Incentive GrantsIncentive Grants• Innovation Grants Innovation Grants

*Distributed at discretion of Secretary of Education*Distributed at discretion of Secretary of Education

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Basic Stabilization Funds: Process Basic Stabilization Funds: Process and Strategyand Strategy

Governors must submit an applicationGovernors must submit an application to USDE, to USDE, making assurances that the state is directing its making assurances that the state is directing its resources toward ARRA goals. resources toward ARRA goals.

Fund use assigned exclusively to Fund use assigned exclusively to GovernorsGovernors.. Stabilization funds must be used to restore support Stabilization funds must be used to restore support

for K-12 and postsecondary education.for K-12 and postsecondary education. The The State must ensure transparencyState must ensure transparency in the use of the in the use of the

funds, have a plan for funds, have a plan for monitoringmonitoring how funds are how funds are expended. expended.

The The State must evaluateState must evaluate the effectiveness of their use the effectiveness of their use and and reportreport to the USDE on a quarterly basis. to the USDE on a quarterly basis.

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Basic Stabilization Funds: Process Basic Stabilization Funds: Process and Guidanceand Guidance

New Considerations:New Considerations: Stabilization funds are to be directed into education funding.Stabilization funds are to be directed into education funding. Stabilization allocations must be reserved exclusively for education and may Stabilization allocations must be reserved exclusively for education and may notnot be used be used

for municipal expenditures.for municipal expenditures. Stabilization allocations are aimed at minimizing the loss of teachers, administrators and Stabilization allocations are aimed at minimizing the loss of teachers, administrators and

other public school employeesother public school employees

NN

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Stabilization Fund UseStabilization Fund Use

New Considerations – cont.New Considerations – cont.

Districts must apply to the State Department of Ed. Districts must apply to the State Department of Ed. (SDE) for Stabilization Funds under a separate (SDE) for Stabilization Funds under a separate application, in compliance with AARA’s application, in compliance with AARA’s accountability provisionsaccountability provisions

Stabilization funds will be sent separately by SDE to Stabilization funds will be sent separately by SDE to districtsdistricts

CT has not yet submitted application for Stabilization CT has not yet submitted application for Stabilization Funds; is still awaiting further guidance.Funds; is still awaiting further guidance.

Objective of Stabilization Funds remains unchanged.Objective of Stabilization Funds remains unchanged.

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Entitlement Grants (Two-Entitlement Grants (Two-Year Totals)Year Totals)

Title I, Part A - Education of the Disadvantaged ($70.8 Title I, Part A - Education of the Disadvantaged ($70.8 million - 50% available Spring, 50% available Fall)million - 50% available Spring, 50% available Fall)

Title I, Part A - School Improvement Title I, Part A - School Improvement ($24.7 million - Fall)($24.7 million - Fall)

Title II, Part D Educational Technology Title II, Part D Educational Technology ($4.7 million - Fall($4.7 million - Fall))

IDEA B - 611: Children with Disabilities IDEA B - 611: Children with Disabilities ($132.9 million -($132.9 million - Spring)Spring)

IDEA B - 619: Preschool IDEA B - 619: Preschool ($5.1 million -Spring)($5.1 million -Spring)

McKinney-Vento - Homeless Children McKinney-Vento - Homeless Children ($0.2 million - ($0.2 million - CompetitiveCompetitive))

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IDEA Part BIDEA Part B(Individuals with Disabilities Education Act)(Individuals with Disabilities Education Act)

Ages 3-21 (611) and Preschool (619)Ages 3-21 (611) and Preschool (619)

Purpose and Use of FundsPurpose and Use of Funds

Excess cost of providing special education & related services Excess cost of providing special education & related services to students with disabilitiesto students with disabilities

Early Childhood programs and activitiesEarly Childhood programs and activities Flexibility Provisions/StrategiesFlexibility Provisions/Strategies

50% Maintenance of Effort (MOE) Adjustment Strategy50% Maintenance of Effort (MOE) Adjustment Strategy Local and/or State Funds Exceed MOE StrategyLocal and/or State Funds Exceed MOE Strategy 15 % Coordinated Early Intervening Services Strategy15 % Coordinated Early Intervening Services Strategy

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IDEA Part B cont.IDEA Part B cont.

TimelineTimeline 50% of ARRA-IDEA funds in spring, 50% of ARRA-IDEA funds in spring,

application is now online. Application application is now online. Application deadline is July 1, 2009deadline is July 1, 2009

50% ARRA-IDEA funds in the fall, revision 50% ARRA-IDEA funds in the fall, revision due Sept. 18due Sept. 18

Regular IDEA funds available in July, Regular IDEA funds available in July, application due May 15application due May 15

Flexibility Provisions/Strategies

1.1. 50% Maintenance Of Effort (MOE) 50% Maintenance Of Effort (MOE) Adjustment StrategyAdjustment Strategy

2.2. Local and/or State Funds Exceed MOE StrategyLocal and/or State Funds Exceed MOE Strategy

3.3. 15 % Coordinated Early Intervening Services 15 % Coordinated Early Intervening Services StrategyStrategy

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Maintenance of Effort (MOE)Maintenance of Effort (MOE)

With certain exceptions, Part B funds must not be used With certain exceptions, Part B funds must not be used by a district to reduce the level of expenditures for the by a district to reduce the level of expenditures for the education of children with disabilities made by the education of children with disabilities made by the district from local funds below the level of those district from local funds below the level of those expenditures for the preceding year expenditures for the preceding year

U.S. Department of EducationU.S. Department of Education

Office of Special Education ProgramsOffice of Special Education Programs

Building the Legacy : Retrieved March 23, 2009 from http://www.ed.gov/results.html?Building the Legacy : Retrieved March 23, 2009 from http://www.ed.gov/results.html?cx=017789009494528204701%3Auzmeqn9qqxo&cof=FORID%3A9&hq=-archived%3A&ie=UTF-cx=017789009494528204701%3Auzmeqn9qqxo&cof=FORID%3A9&hq=-archived%3A&ie=UTF-8&q=Fiscal+Accountability#8848&q=Fiscal+Accountability#884

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Supplement not Supplant

If an LEA maintains (or exceeds) its level of local, or state and local, expenditures for special education and related services from year to year (in this case 2008-09 to 2009-2010), either in total or per capita, then the IDEA (standard and/or ARRA) funds are, in fact, supplementing those local, or state and local, expenditures and the LEA has met its maintenance of effort (MOE) and supplement/not supplant requirements.

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Use of IDEA FundsUse of IDEA FundsStrategy 1: 50% Strategy 1: 50%

Maintenance Of Effort Maintenance Of Effort (MOE) Adjustment (MOE) Adjustment

If an LEA does maintain (or exceed) its level of If an LEA does maintain (or exceed) its level of local, or state and local, expenditureslocal, or state and local, expenditures for special for special education and related services, the LEA can, by an education and related services, the LEA can, by an amount equal to 50% of the increase to their IDEA amount equal to 50% of the increase to their IDEA funds, decrease their local special education/related funds, decrease their local special education/related services expenditures, andservices expenditures, and

use that same amount of local funds for use that same amount of local funds for activities activities allowable under the Elementary and Secondary allowable under the Elementary and Secondary Education Act (ESEA).Education Act (ESEA).

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Use of IDEA FundsUse of IDEA FundsStrategy 1 (cont): 50% Maintenance Of Strategy 1 (cont): 50% Maintenance Of

Effort (MOE) AdjustmentEffort (MOE) Adjustment

Office of Special Education Programs’ Office of Special Education Programs’ indicates that unless an LEA has been indicates that unless an LEA has been identified as “Meet Requirements” on its identified as “Meet Requirements” on its IDEA Determinations of the State IDEA Determinations of the State Performance Plan, it is prohibited from Performance Plan, it is prohibited from reducing its MOE under IDEA section 613(a)reducing its MOE under IDEA section 613(a)(2)(C) for the fiscal year in which it did not (2)(C) for the fiscal year in which it did not achieve the “Meets Requirements” category. achieve the “Meets Requirements” category.

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Local Operating Budget FY 2010Total $9.0 M (ESEA - $2.1MTotal $6.9MMeets 2010 MOE requirement of $9.0M

Local Operating Budget FY 2011 (Level Funded)

Total $6.9MMeets 2011 MOE requirement of $6.9M

Special Education Special Education

2010[(B + C) – A] X 50% = $2.1 M Increase $2.1M over 2009

2011D – (B + C) = -$3.8M ($0) No increase over 2010

Maintenance of Effort Sample Calculation:Use of 50% of the difference between fiscal year allocations

If you are going to offset your local budget by 50% of the increase and use the CEIS allowance, check the rules related to the use of CEIS funds.

A B C D E

IDEAStandard

’09

IDEA Standard

‘10

IDEAARRA

’10

IDEAStandard

’11

IDEAARRA

‘11

$3.0 M $3.2 M $4.0 M $3.4 M 0

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Use of IDEA FundsUse of IDEA FundsStrategy 2: Local/State Strategy 2: Local/State

Funds for Special Funds for Special Education Exceed MOEEducation Exceed MOE

When a district meets its required local/state MOE When a district meets its required local/state MOE from one year to the next for special education, the from one year to the next for special education, the district has met the supplement/not supplant district has met the supplement/not supplant requirement under IDEA, Part B.requirement under IDEA, Part B.

If local/state special education costs in 2009-2010 If local/state special education costs in 2009-2010 exceed costs in 2008-2009, the Board can reduce its exceed costs in 2008-2009, the Board can reduce its special education budget by that excess amount and special education budget by that excess amount and use these local/state funds for non-special education use these local/state funds for non-special education personnel, services and activities without considering personnel, services and activities without considering it supplanting.it supplanting.

Use of IDEA FundsUse of IDEA FundsStrategy 2 (cont): Local/State Funds for Strategy 2 (cont): Local/State Funds for

Special Education Exceed MOESpecial Education Exceed MOEFor example:For example:

Board’s expenditures from state/local funds in 2008-Board’s expenditures from state/local funds in 2008-09 equal $1,000,000.09 equal $1,000,000.

Board’s expenditures from state/local funds in 2009-Board’s expenditures from state/local funds in 2009-2010 equal $1,200,000.2010 equal $1,200,000.

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Use of IDEA FundsUse of IDEA FundsStrategy 2 (cont): Local/State Funds for Strategy 2 (cont): Local/State Funds for

Special Education Exceed MOESpecial Education Exceed MOE

The Board can reduce its special education budget for The Board can reduce its special education budget for 2009-2010 to $1,000,000 and meet the MOE 2009-2010 to $1,000,000 and meet the MOE requirement.requirement.

The Board can take the $200,000 difference and use it The Board can take the $200,000 difference and use it for non-special education expenditures. for non-special education expenditures.

Utilizing the $200,000 to support the local budget Utilizing the $200,000 to support the local budget does not impact MOE as occurs in Strategy 1.does not impact MOE as occurs in Strategy 1.

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Use of IDEA FundsUse of IDEA FundsStrategy 3: Coordinated, Early Strategy 3: Coordinated, Early

Intervening Services Intervening Services Districts may use up to 15% of IDEA Part B (also Districts may use up to 15% of IDEA Part B (also

the ARRA) funds to develop and provide CEIS for the ARRA) funds to develop and provide CEIS for students who are currently not identified as needing students who are currently not identified as needing special education. special education.

However, those districts that disproportionately , by However, those districts that disproportionately , by race, identify, place and/or suspend/expel students, race, identify, place and/or suspend/expel students, cannot choose to use this strategy as the State is cannot choose to use this strategy as the State is required to direct these districts funds for specific use required to direct these districts funds for specific use to address these issues.to address these issues.

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Use of IDEA FundsUse of IDEA FundsStrategy 3 (cont): Coordinated, Early Strategy 3 (cont): Coordinated, Early

Intervening ServicesIntervening Services Each district that implements CEIS must report to the CT Each district that implements CEIS must report to the CT

State Department of Education on:State Department of Education on: the number of children who received CEIS andthe number of children who received CEIS and the number of those children who subsequently received special the number of those children who subsequently received special

education and related services under Part B during the subsequent education and related services under Part B during the subsequent two-year period (i.e. the two years after receiving CEIS).two-year period (i.e. the two years after receiving CEIS).

this is reported on the district’s IDEA grant application under this is reported on the district’s IDEA grant application under Section 5 Section 5

CEIS Memo-Questions 6, 34 CFR 300.226(d)CEIS Memo-Questions 6, 34 CFR 300.226(d)2008 OSEP Leadership Conference2008 OSEP Leadership ConferenceMenlove Doutre & Brown-Clark PresentationMenlove Doutre & Brown-Clark Presentation

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SPECIAL RULE TO MOE/CEIS

Under 34 CFR Section 300.205 (d), the amount of funds expended by an LEA for CEIS (under Section 300.226) shall count towards the maximum amount of expenditures that the LEA may reduce its MOE.

Thus if LEAs are utilizing the “50% offset rule” for MOE, they should be subtracting from the 50% increase to their IDEA entitlements the amount of CEIS funds they are planning to use in order to determine the amount the LEA can use for MOE purposes.

MOE/CEIS Example District A:

IDEA Part B ARRA funds= $790,000 IDEA Part B Standard increase= $10,000

($650,000 is IDEA Standard Grant award Total IDEA increase = $800,000 50% Offset rule amount = $400,000

Up to15% of IDEA ARRA for CEIS : $118,500 Up to 15% of IDEA Standard for CEIS : $97,500

Total available for CEIS :$216,000 Amount available for MOE= $184,000 ($400,000-

216,000)

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Ongoing ARRA Information

Connecticut State Department of Education (CSDE) and U.S. Department of Education Guidance appears on CSDE’s Website (www.ct.gov/sde) at RECOVERY INFORMATION (IDEA Part B Grants to States and Preschool Grants)

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Title I and ARRA ResourcesTitle I and ARRA Resources

www.ed.govwww.ed.gov

www.ed.gov/recoverywww.ed.gov/recovery

www.recovery.govwww.recovery.gov

http://www.csde.state.ct.us/public/cedar/nclb/http://www.csde.state.ct.us/public/cedar/nclb/index.htmindex.htm