American Recovery & Reinvestment Act

NAEYC Webinar

March 2, 2009

Purpose

President Obama statement February 14, 2009

It will save or create more than 3.5 million jobs over the next two years, ignite spending by business and consumers alike, and lay a new foundation for our lasting economic growth and prosperity.

Timeline

Enacted February 17, 2009 Governors have up to 45 days after date of

enactment to “certify” that they will take the ARRA funds -- State Legislature may certify the state's intention to use any funds in ARRA not accepted for use by the Governor

Unless otherwise specified, all funds appropriated under ARRA remain available for obligation until September 30, 2010

CCDBG

$2 billion dollars – states have 2 years to spend the fundsDiscretionary funds = no state match required on

these fundsGoes through the normal CCDBG formula,

including the minimum set aside of 4% for quality “shall be used to supplement, not supplant State

general revenue”

CCDBG Set Asides

Above the statutory requirement that states use at least 4% of grant for quality, set asides of $255 million, of which $93.5 million for

activities that improve the quality of infant/toddler care

CCDBG

While expected to serve many more children, opportunities with the quality funds and subsidy system improvements Quality set aside examples

using quality dollars to support grants to programs to improve along the QRIS with grants

expanding scholarships and compensation awards hire infant/toddler specialists to work with

programs

CCDBG

Improve subsidy policy Once – a- year eligibility determination Lower family co-pay Lower eligibility threshold Job search as families become unemployed Education as families lose jobs and go back to school

Head Start/Early Head Start

Separates funding – both spend out over 2 years $1 billion for Head Start $1.1. billion for Early Head Start – up to 10% reserved for

training and technical assistance and up to 3% reserved for monitoring

COLA, set asides for quality, migrant and seasonal, tribal, early learning advisory councils come out of the $1 billion for Head Start

Expansion funds left over from the $1 billion split between Head Start and Early Head Start

Head Start/Early Head Start

ApplicationExpansion fundsNew Early Head Start

Asking for time for start up of new Early Head Start to recruit teachers, etc. as in the first year of the authorized program

Encouraging Head Start programs to serve 3 years old

Title I

$13 billion$3 billion for school improvement grants (state

grants, SEA holds 5% and remainder goes to low performing school districts for improvement efforts)

$10 billion to local school districts along a formula that is more heavily weighted for poverty: targeted assistance grants and education finance incentive grants

Other Education Funds and Individual Aid State stabilization – restoration, incentive grants,

innovation grants IDEA Part B IDEA Part C IDEA section 619 Title II Higher Education Act Part A Pell Grants, Work Study Higher education tax credit

ARRA funds for Education and MOE Maintenance of effort provisions in underlying statutes –

ESEA/NCLB and IDEA -- continue to apply to new funds. With prior approval from the Secretary of Education, a State

Education Agency or local education agency that receives funds under the State Fiscal Stabilization Fund can treat any portion of such state fiscal stabilization funds that is used for elementary and secondary education or postsecondary education as non-Federal funds for the purpose of any requirement to maintain fiscal effort under any other program, including Part C of the Individuals with Disabilities in Education Act.

For state fiscal stabilization funds, Governor shall ensure that the State will in each of fiscal years 2009, 2010, and 2011, maintain State support for elementary, secondary, and public postsecondary education at least at the levels in fiscal year 2006

Title I birth through K-12

US Dept of Ed guidance Can use for children below compulsory school age Can use with other funds for full day/full year programs District can directly provide 0-5 or contract with a Head Start, Even

Start, Early Reading First, or “comparable public early childhood program”

When using Title I for children below K, must follow the Head Start standards

Teacher qualifications with Title I – Preschool teachers working in Title I preschool programs, in States that consider preschool as part of public elementary education, must meet the applicable Title I teacher qualification requirements

Title I Teacher Qualifications

According to 2004 guidance by US Dept of ED “Preschool teachers working in Title I preschool

programs, in States that consider preschool as part of public elementary education, must meet the applicable Title I [NCLB] teacher qualification requirements “

http://www.ed.gov/policy/elsec/guid/preschoolguidance.doc -- pages 19-20

Title I and Professional Development

Title I funds may be used to provide professional development for any teacher or paraprofessional working in a Title I preschool program supported partly by Title I funding even if their salary is not paid for with Title I funds if the training is related to the Title I program and is designed to meet the educational needs of Title I children.

For example, Title I funds may be used for professional development for a Head Start teacher working in a preschool program jointly funded by Title I and Head Start if the training is related to the Title I program or is designed to help the Head Start teachers meet the educational needs of Title I children.

Title I funds may also be used for joint professional development for non-Title I preschool teachers and paraprofessionals working in programs with no Title I funds, such as Head Start staff, and for Title I elementary school teachers and paraprofessionals. For example, Title I funds may be used for such joint professional development if the children served in the non-Title I preschool are likely to be attending a Title I school when they enter kindergarten, and if the purpose of the professional development is to improve coordination between the non-Title I preschool and the Title I school or to facilitate children’s transition from preschool into the Title I elementary school.

IDEA Part C and 619

Additional $500 million for Part C Additional $400 million for 619 preschool

Part C – new policy triggered by appropriation beyond $460 million

Education Stabilization

3 parts in Title XIV of the ARRA Funds to states to restore cuts in state funds to K-12

and postsecondary education, “and as applicable, early childhood education programs and services”

By governor application, Incentive Grants to improve school achievement

By local school district or LEA/nonprofit partnership application, Innovation Funds to scale up effective models, public/private partnerships

Education Stabilization – Assurances and Maintenance of Effort Governor shall ensure that the State will in each of fiscal years

2009, 2010, and 2011, maintain State support for elementary, secondary, and public postsecondary education at least at the levels in fiscal year 2006, and achieve equity in teacher distribution in low income school districts, establish a longitudinal data system that includes the elements

described in the America COMPETES Act, enhance the quality of academic assessments relating to English

language learners and students with disabilities, and improve State academic content standards and student academic achievement standards, and

ensure compliance with corrective actions required for low-performing schools

Restoration

For K-12, determines how to spread those funds under its state aid formula

For public higher education institutions to restore state support to the greater of fiscal year 2008 o4 2009

For early childhood, no formula suggested in the statute

Remaining funds after restoring shortfall are distributed to local educational agencies according to Title I formula

Incentive Grants

Governor submits an application (50% of grant will go to local educational agencies based on their Title I share) that describes the State's progress in each of the following as well as achievement and graduation rates, and how the State will use the grant to continue making progress toward the state’s academic achievement standards achieve equity in teacher distribution in low income school districts, establish a longitudinal data system that includes the elements

described in the America COMPETES Act, enhance the quality of academic assessments relating to English

language learners and students with disabilities, and improve State academic content standards and student academic achievement standards, and

ensure compliance with corrective actions required for low-performing schools

Innovation Grants

$650 million as “reward” for having made significant gains in closing achievement gap

Uses of funds: expand and serve as model of best practice; work in partnership with private sector and philanthropic community; identify and document best practices to share and that can be taken to scale

Eligible applicants: Local educational agency Partnership of a nonprofit organization and one or more local

educational agencies or a consortium of schools

US Dept of Education expects to release guidance the end of March

Public Safety, Government Services, Education $8.7 billion in this grant fund that can be

used on any activity authorized by ESEA/NCLB, IDEA and for school and higher education “modernization, renovation and repair”

Higher Ed

Title II PART A Teacher Quality Partnerships

Pell Grants Work-Study Expansion of Hope tax credit now called

American Opportunity tax credit for higher education

Teacher Quality Partnerships

Application from federal level to local partnership Required partners

Baccalaureate teacher preparation institutions High need local school district

Allowable partners: early childhood education program (child care, Head Start, state preK)

See summary at www.naeyc.org/policy/federal/pdf/SummaryEcProvisionsHeoa.pdf

New American Opportunity Credit

New name for Hope tax credit for higher education $2500 a year for the first 4 years of college Covers tuition and fees, books, materials for coursework Credit is 100% of the first $2,000, then 25% of the next

2,000 Partially refundable: low income student who does not owe

taxes can receive up to 40% of qualifying expenses which is a maximum of $1,000

This expansion applies to 2009 and 2010 – President’s budget requests making expansion permanent

TANF

$3 billion for Emergency Contingency Fund to states to serve increase in families due to economic downturn

$319 million supplemental funds for states with high population growth and/or increased poverty

Data

Keeping track of Jobs/work created with the funds Quality uses and how to collect information on use

and impact Children served and where (may be multiple settings) Coordination of funds under ARRA and other funds Continued unmet need of access, quality, workforce

Transparency Rules

Details at www.recovery.gov Federal agency websites will report grants,

contracts, and how spent Federal recipients’ use of funds will be

publicly reported

What to do now

Meet with state child care administrator on subsidy and quality funds Set up meetings with governors’ aides and legislature leadership regarding

which funds governors will certify acceptance and what legislature will request

Talk to you state superintendents and state school boards associations Talk to the State Title I director in the State Educational Agency Meet with local school districts receiving the Title I funds for discussions of

use on preschool programs in schools and contracts with Head Start, high quality child care – summer extension, September expanded enrollment and hiring teachers and staff, joint professional development of community-based and school based preschool, k and 1st grade teachers

Meet with Governor on stabilization funds to discuss birth to age 8 restoration, innovation funds

What to do now

Talk to colleges of education that prepare early childhood educators about the Title II Partnership Grants to be partner applicants

Get the word out to colleges, program directors, staff on the New American Opportunity tax credit for higher education

Resources

Chart of various funds under ARRA www.naeyc.org/policy/federal/pdf/FinalAgreementChart.pdf

State by state allocations of CCDBG, including the allocation of the $255 million set aside, and other CCDBG recommendations under the ARRA http://childcareandearlyed.clasp.org/reinvestinginchildcare.html

State allocations for Title I and IDEA Parts B, C and section 619 grants www.ed.gov/about/overview/budget/statetables/09arrastatetables.pdf

Within-state allocations of Title I – www.ed.gov/about/overview/budget/titlei/fy09recovery/index.html

State allocations for other programs in ARRA http://www.cbpp.org/1-22-09bud.htm

Using the ARRA for QRIS development and implementation www.buildinitiative.org/content/whats-new

State ARRA websites www.recovery.gov/?q=content/state-recovery-page