ARRA

What funds are available to schools, and how can we capture our share?

It is an extraordinary year in school funding. As the economy limps along, schools are being hit with budget cuts, spending freezes, and even layoffs in some states. The American Recovery and Reinvestment Act is designed to assist states in making up deficits, keeping teachers employed, and investing in educational strategies that will position schools to continue making improvements.

The overall size of the bill is $787 Billion. Of that, $308 Billion is discretionary spending. Of the $308 Billion, $53 Billion is designated for education and training. There are three major funding areas for K-12 education:

• State Stabilization funds – these are funds to be used in making up deficits in state education spending. Each state’s financial condition is different, and so each state will spend this fund using its own priorities. If a state has leftover stabilization funds, they may be used for additional Title 1 allocations and other funds such as IDEA, ESEA, and building modernization.
• Discretionary funds – various formula and competitive grants.
• Title I – based on formula, but increased. Formulas are set – fall availability
• IDEA – special education
• Title II-D – technology funds will be spent 50% by formula and 50% competitive, available this fall.
• Race to the Top – distributed by the Secretary of Education as incentive funds to states showing performance gains. This fund will not be available until the 2010 fiscal year.

In addition to these large, obvious sources of school funding, additional grants will be available from the following agencies:

• NIH – $200 Million in Challenge grants
• HHS – $200 Million for health and professional training programs
• US Department of Labor – $2.95 Billion for workforce investment programs
• NTIA/FCC/USDA – $4.7 Billion for coordinated rural broadband initiatives

All of the above sources of funds have the potential to benefit schools in various ways. At the moment, most agencies are preparing spending plans to be released in the next 30-45 days. School administrators and boards can and should be carefully making plans to utilize formula funds wisely to maximize achievement benefits. In order to prepare for discretionary and competitive funds that may become available on short notice, it is highly recommended that schools draft documents designed to outline major funding requests in advance, so that when funds are announced the process of applying will already be outlined and ready to go.

Andrew Knox,
Sr. Area Grant Manager
Polycom Grant Assistance Program
Polycom, Inc.
2215 Post Rd. #1006
Austin, Texas 78704
512.441.6058