Grants and Other Financial Assistance Programs: FY2010

ED encourages school districts to help meet the commitment that Governors have made in their state Stabilization applications by using their SFSF grants in ways most likely to lead to improved results for students, long-term gains in school system capacity, and increased efficiency and effectiveness.

While there is no requirement that districts spend a certain percentage of their SFSF funds on investment versus recovery activities, the Massachusetts Department of Elementary and Secondary Education (ESE) is advising districts to split SFSF grant funds between saving jobs and strategic investment-that is, for program improvements that will provide enhanced educational opportunities and/or cost savings that will extend beyond the limited two-year life of this unprecedented grant program.

The following two priorities, established by ED, guide the use of ARRA education funds:

Priority - Recovery: Spend funds quickly to save and create jobs.

Priority - Investment: Improve student achievement through school improvement and reform in at least one of the following four areas:

• Educator Quality and Effectiveness - Activities that will result in increased educator effectiveness and equitable distribution of qualified teachers, para-educators, administrators, and other personnel.

• Support and Intervention - Activities that will result in increased implementation of intensive and effective systems, supports, and programming for the district's lowest performing schools and students.

• Assessment and Data Systems - Activities that will result in increased implementation of high-quality assessment and data systems to track progress and foster continuous improvement.

• College and Career Readiness - Activities that will result in greater numbers of students effectively prepared for college and careers.

The Department encourages districts to consider using their ARRA SFSF grants to support and strengthen regional and collaborative approaches in order to achieve efficiencies and economies of scale that will last beyond the life of ARRA funding. This could include partnering with other districts, educational collaboratives, non-profit organizations, colleges and universities, and professional associations in making strategic investments.

FY10 allocations: Final SFSF awards are posted at

  http://finance1.doe.mass.edu/chapter70/chapter_10_local.xls.

FY11 allocations: No final decisions have been made on the amount or distribution of SFSF grants in FY11. It is likely that any such allocations will be based on the FY11 Chapter 70 calculations, which will be released in January 2010. These calculations will in turn be based on updated enrollment data and municipal finance data. Districts receiving SFSF allocations in FY10 should not assume that they will be eligible for similar amounts in FY11.

In general, SFSF grants may be used for any educational expenditures that would be eligible under the Elementary and Secondary Education Act/Impact Aid Act (ESEA), the Individuals with Disabilities Education Act (IDEA), the Adult Education and Family Literacy Act (AEFLA), and the Carl D. Perkins Career and Technical Education Act (Perkins Act).

Eligible expenses include any FY10 expenses directly related to the school district's operation, with the following exceptions:

• 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.

Eligible expenses can include expenses in the school department budget as well as expenses in other municipal department budgets that directly support the operation of the schools.

Under recent changes to state law (Chapter 26 of the Acts of 2009, Section 49), salary expenditures from FY10 state fiscal stabilization fund (SFSF) grants are exempt from the special 9% pension chargeback that usually applies to any federal grants.

Districts' net school spending requirements will continue to be based on the sum of the municipality's minimum required contribution and the district's state-funded Chapter 70 aid. Any district that is not using all of its SFSF grant for net school spending purposes will need to document whether it will be able to meet its foundation budget target using other sources of funds. If a school committee chooses to set an operating budget lower than its foundation budget target, it will need to document the reasons for that decision and how it proposes to ensure that all students receive an adequate level of services.

Project Duration: July 1, 2009 to June 30, 2010*

*All ESE grants are awarded for one fiscal year at a time. ARRA grants have been awarded to the state as part of the FY10 budget appropriation. As with other federal entitlement grants they are subject to the federal Tydings Amendment, which allows any funds not expended in the year of appropriation to be carried over for obligation during an additional 15 month period. This makes the effective end date for use of these funds September 30, 2011. The Department is currently working on specific carryover procedures for these funds and they will be provided as soon as they are available.

ESE will begin to accept FY10 SFSF applications on a rolling basis.

In order to gain timely access to the funds, ESE suggests that districts submit their application by November 2, 2009.

1.   All required forms and submission instructions.

2.     Part III - Required Program Information

1. Budget Detail - Description of Line Item Information

Districts will be asked to ensure transparency and accountability and report publicly on the use of funds.

In addition to the standard federal financial reports required for all federal grants, ED will require extensive programmatic reporting to document the use of all ARRA funds. ED is still determining the specific data to be collected, but all SFSF recipients will be expected to comply with the finalized data reporting requirements. Districts receiving an SFSF grant should anticipate that they will be required to report separately and in detail regarding the use and impact of these funds on at least a quarterly basis.

See the following for additional guidance.

•   http://www.doe.mass.edu/arra/041709memo.html

•   http://www.ed.gov/programs/statestabilization/guidance.pdf

Complete and submit the application workbook through the Security Portal. Mail (2) copies of the Cover Sheet, each with the Superintendent's original signature, to: