08.16.10: AASA Education/Jobs Bill Q&A
BACKGROUND: In early August, Congress passed-and the President signed into law-emergency education jobs and FMAP funding. The bill provides $10 billion for educator jobs and $16.1 billion in FMAP federal aid extensions. This bill is not brand new. Earlier versions of the bill have been kicking around since late last year. This actually marks the third time the House passed emergency funding aimed at schools. The Senate was a heavier lift, and their vote last week was a big victory. The educator jobs fund is projected to save 161,000 jobs across the nation.
FUNDING LEVELS/ELIGIBILITY/TIMELINE
Q: How do states apply for the funds?
A: The Department has created a draft application for states, which will be published in the next week along with detailed guidance about how states can distribute the funds and districts can allocate them.
Q: When will funds become available to states? To LEAs?
A: Funds will become available to states within 45 days of receipt of an acceptable application. The department anticipates releasing the application next week (Aug 16). The Dept. has committed to moving the funds within two weeks of approving an application. From there, states (governors) have to decide if they will move the funds to the LEAs using their Title I or state formula.
Q: How long will LEAs have to spend/obligate the funds?
A: The Tydings amendment applies to this legislation, meaning schools will have 27 months (through Sept 2012) to spend the funds. While the Dept emphasizes the money is aimed for this year, they concede that the spend-out period is 27 months. The clock for Tydings starts with enactment, which was Aug. 10, 2010.
Q: Could we save the money to save jobs in 2011-12?
A: Yes. While the Dept. would prefer the money be put to more immediate use in the 2010-11 school year, LEAs will have the ability to reserve funds for the 2011-12 school year. States, however, cannot hold the money in anticipation of having LEAs use it in the 2011-12 school year. The money must flow immediately to the local level from the state.
ELIGIBILITY
Q: Who is eligible to receive money?
A: Given that states are to use Title I or a state formula to move the funds to the local level, we anticipate that any entity eligible under those formulae would be eligible to receive the funds. We were able to confirm that districts that did not have to make personnel/job cuts will still be eligible to receive the federal funds, so long as they qualify under their state's Title I or state formula requirements.
STATE ISSUES (Formula, Supplement/Supplant)
Q: Under ARRA, many districts reported that states simply supplanted state effort with the federal monies. Already we are hearing members voice their concerns about being supplanted again, at the state or county level. Has anything changed with this legislation?
A: While the language around Maintenance of Effort and supplement/supplant is somewhat stronger than in ARRA, it is a not as strong as it could be. We are skeptical that the language will be able to fully prevent supplementing. The answer to the supplement/supplant question will come with how strictly the language is enforced and how-if at all-Governors and state legislatures are held accountable for ensuring that these federal monies are all in addition to (not in place of) state effort in education funding.
Q: Can states add additional regulations/restrictions to the money?
A: No, states should not add any regulations or restrictions to the money. It should simply pass through the state and to the LEAs.
ALLOWABLE USES
Q: Can we use the money to 'backfill' local dollars used in the early part of the 2010-11 school year to pay for jobs that are being retained because they knew the money was coming?
A: Yes. While Congress returned from recess to take an early vote, it wasn't early enough for the money to reach all LEAs before the school year starts. Some districts will be in the position of having to pay salaries for the recalled jobs out of local funds initially. Once the federal funds reach the local level, districts can use the federal funds to backfill the local expenditure related to salary/wages/benefits.
Q: Can the money be used for raises/COLAs? Can the money be used to buy back furlough days?
A: Yes, the money can be used for raises and/or COLAs and to buy back furlough days. The money is aimed at personnel ... saving, creating, and retaining jobs. This includes provision of pay, benefits, training and development that will help recruit/retain staff positions.
Q: Given that the money will not be available to my district until after the school year starts, can I do an immediate recall of staff that were laid off, in anticipation of the federal funds?
A: Yes, that would be an allowable use/action.
Q: It is our understanding that funding can only be used to support positions that directly provide classroom instruction or support the work of classroom instruction. Funding cannot be used to support central office administration, transportation, maintenance, food service, health services or other functions that are not directly providing instruction or supporting instruction. Is this accurate?
A: Partially. You can use the funds to support school-level jobs. You cannot use the funds to pay district-level administrative positions, but you CAN use the funds to pay for teachers, teacher assistants, principals, assistant principals, counselors, librarians, physical/occupational/speech therapists, custodians, cafeteria/school lunch staff, bus drivers and other school-based workers (this would include a social worker who, while paid at the district level, spends all their time at the school level, on-site, working with students).
Q: Can education jobs fund be used for professional development? Is there any allowable use outside of retaining, reinstating, recalling, maintaining staff?
A: Yes. The funds are designed to help districts retain/reinstate/recall/maintain staff, and part of that includes being able to incentivize and develop staff. Allowable uses outside of salary/benefits will include COLAs, raises, professional development, as well as incentives for teachers to work in hard-to-staff classrooms.
OTHER
Q: If my state uses the Title I formula, will the Title I rules and regulations apply?
A: For all intents and purposes, the money should be treated as the State Fiscal Stabilization dollars were treated. While moved through the Title I formula, the Title I rules/regs will not apply. The difference between this fund and SFSF is that this fund is ONLY for people and saving jobs. No construction, no supplies, no transportation equipment. The money is only for jobs.
Q: We like the early vote. Even with the early vote, though, the money will net be in my district as we begin school. Will I be able to use local dollars to pay salaries until the federal funds become available, and then use the federal dollars to backfill that local budget hole?
A: Yes. The dept has said that this is an allowable use. You can recall or rehire staff for the beginning of the school year and, once the federal funds become available, use them to cover the local dollars you had used to cover the wages/salaries of the positions. If you were not reducing personnel, you can use the federal funds to cover those existing salaries/ wages (you CAN supplant at the district level) and reassign the freed-up local dollars for other budget needs.
Q: What questions do we still need answers to?
- How will education service agencies be treated under the law? Will they be eligible to receive funding?
- If states choose to use the Title I formula, which specific formula (targeted, EFIC, concentrated, or basic) will be used? Do we need to be concerned about the impact of number weighting within the EFIG and targeted formulas?
