Grants and Other Financial Assistance Programs: FY2010

Advisory Memorandum on FY10 ARRA State Fiscal Stabilization Fund (SFSF) Grants
Fund Code: 780

July 15, 2009

The table below contains the FINAL district allocations for FY10 ARRA State Fiscal Stabilization Fund (SFSF) grants (ESE fund code 780). School districts should plan on these funds being available in making staffing and other budgetary decisions for the coming school year.

The amount of each district's allocation is equal to the difference between the district's FY10 foundation budget and its available state and local funding under the Chapter 70 formula (Chapter 70 state aid plus required local contribution). Districts that are not receiving an FY10 SFSF allocation have already received state and local funding equal to or greater than their foundation budgets. See   http://finance1.doe.mass.edu/chapter70/chapter_10_local.xls for a complete summary of the Chapter 70 formula calculations.

As noted previously, salaries funded by this grant are not subject to the 9% pension chargeback normally applicable to federal grants. However, salaries for non-certified personnel funded by this grant are subject to the normal pension assessments levied by your local pension system.

The application forms for these grants will be posted on the ESE school finance website sometime in August, and the initial cash disbursements will be made during the second quarter of FY10 (October through December). This delay is due to the extra paperwork required for the Commonwealth to access all of its SFSF entitlement, as well as the need to provide assurances that all of the ARRA reporting requirements will be met. Despite the change in schedule, districts can still rely on and budget for the allocation amounts listed in this memorandum.

We have not yet determined the effective date for incurring expenditures under this grant program. It will be no later than the end of the second quarter (12/31/09), but may very well be sooner. We will let you know as soon as we have more information. Districts should be prepared to split expenditures between the general fund and the grant fund to accommodate this requirement, with the general fund covering the first and second quarters and the grant fund covering the third and fourth quarters.

We recognize that the initial disbursement of cash under this grant program will occur somewhat later than the September 30 date for Chapter 70 state aid. If needed, municipalities and regional districts can issue federal aid anticipation notes (FAAN) for cash flow purposes. Please contact DOR's Division of Local Services for information on FAAN requirements.

If you need further information regarding FY10 SFSF grants, please contact the following staff in the Department's school finance center:

FINAL FY10 SFSF ALLOCATIONS (FUND CODE 780)