2009 Frequently Asked Questions
This information is based on the latest guidance from the U.S. Department of Education which is subject to change. We will continue to provide updates as we receive additional information. Thank you.
Click on a question to view the answer.
General
- When will school districts actually receive funds?
- My public school has a shovel-ready project. How do we get our stimulus funds?
- Do the new Stimulus funds have a CFDA (Catalogue of Federal Domestic Assistance) number different from existing awards, and will there be new revenue codes?
- Where can I find information on federal ARRA reporting requirements?
- Are Special Act School Districts eligible for stimulus funds?
State Fiscal Stabilization Funds
- Are the State Fiscal Stabilization funds used for the Deficit Reduction Assessment Restoration subject to ARRA restrictions?
- Why must districts apply for stabilization funds?
- How long does a school district have to spend the ARRA fiscal stabilization funds?
- Is there additional ARRA funding for school districts during the FY2009 year that has not been made available yet nor included in the district's state aid runs? Should districts be planning to receive additional ARRA funds during the upcoming 2009-10 school year?
- If a district doesn't include stimulus funds in the budget that is approved by the voters, can they add them later?
- Must a district use ARRA fiscal stabilization funds to restore all jobs before using the funds for other activities?
- In addition to using ARRA funds to avert layoffs, what else can ARRA funds be used for?
- How should school districts balance the use of Recovery funds to add new positions with the need for sustainability after the funds go away?
- Can funds be used for contracted services instead of adding positions?
- Is there any transferability between titles for the Recovery money? For example, between Title I to Title IID?
- Do nonpublic schools have the ability to access Recovery funds and/or Stabilization funds?
Title I
IDEA
- Relating to IDEA funding, what is meant by reduction of Maintenance of Effort with 50% of the increase in IDEA funds from 2008-09 to 2009-10?
- Will Approved Special Education Programs (ASEPs) Schools receive any of the increased funding provided to districts under IDEA?
- Will Parentally-Placed Students receive any of the increased funding provided to districts under IDEA?
- Will Charter Schools receive any of the increased funding provided to districts under IDEA?
Cultural Education and Libraries
- My public library has a shovel-ready project. How do we get our stimulus funds?
- May ARRA funds be used to restore the jobs of school library media specialists?
General
Q1: When will school districts actually receive funds?
A: Districts will begin receiving most federal Title funds prior to September 1, 2009. There are many components to ARRA funding. State Fiscal Stabilization funds will be available for school districts to begin drawing down funds on September 1. Districts will be able to draw down up to 70 percent of their stabilization funds after September 1 and will be able to draw down the remaining 30 percent after April 1, 2010. Districts will be required to submit expenditure reports to draw down funds. The disbursement of funds must comply with federal regulations, EDGAR 80.21, regarding cash management. Please refer to the grant award document that will be issued upon approval of your application and the Fiscal Guidelines for Federal and State Grants at: http://www.oms.nysed.gov/cafe/guidance/guidelines.html.
Q2: My public school has a shovel-ready project. How do we get our stimulus funds?
A: The American Recovery and Reinvestment Act of 2009 does not include a specific allocation of funds dedicated solely for school modernization, repair, renovation, or construction.
However, there may be avenues for some schools to apply for facility improvement funds under the rural development, technology infrastructure, and energy provisions of the Act which are being administered by other state and federal agencies. For more information on these opportunities, see the information at http://www.recovery.ny.gov/ 
.
As we get additional information about funding opportunities for school construction, modernization, repair and renovation projects we will post that information on this website.
Q3: Do the new Stimulus funds have a CFDA (Catalogue of Federal Domestic Assistance) number different from existing awards, and will there be new revenue codes?
A: Yes, the Stimulus funds will have new CFDA numbers and revenue codes. Lists will be published soon.
- Non-ARRA Title I will continue to be accounted for in the Special Aid fund under code 4126.
- Non-ARRA IDEA will continue to be accounted for in the Special Aid Fund under code 4256.
- ARRA Title I and IDEA will both be accounted for in the Special Aid Fund under code 4289 and separately listed.
- State Fiscal Stabilization Funds used for the Deficit Reduction Assessment Restoration will be accounted for in the General fund under code 4285.
- State Fiscal Stabilization Fund aids for Teacher Centers, Mentor Interns and other programs will be accounted for in the Special Aid fund under code 4285 and separately listed.
Q4: Where can I find information on federal ARRA reporting requirements?
A: Federal reporting requirements can be found on the web at http://www.whitehouse.gov/omb/memoranda_default/ and on the State Education Department ARRA web site at: http://usny.nysed.gov/arra/.
Q5: Are Special Act School Districts eligible for stimulus funds?
A: Yes, special act school districts are eligible for Title I and IDEA funds.
State Fiscal Stabilization Funds
Q6: Are the State Fiscal Stabilization funds used for the Deficit Reduction Assessment Restoration subject to ARRA restrictions?
A: Yes, the ARRA State Fiscal Stabilization funds that were used to restore proposed cuts in 2009-10 school aid to 2008-09 levels are subject to all ARRA accounting, reporting, record keeping and accountability requirements. The federal government will require extensive reporting on the use of stabilization funds even though the funds are being used to offset the foundation aid deficit reduction assessment. State Fiscal Stabilization funds may be used for any activity allowed under the ESEA, IDEA, the Adult and Family Literacy Act, the Carl D. Perkins Career and Technical Education Act of 2006, and the modernization, renovation and repair of school facilities.
Q7: Why must districts apply for stabilization funds?
A: To receive these resources, federal law requires school districts to apply to their state education agency for ARRA fiscal stabilization funds as a condition of receiving the funds.
Q8: How long does a school district have to spend the ARRA fiscal stabilization funds?
A: All funds must be obligated by September 30, 2011. The stabilization funds will be provided over a two year period to minimize the funding cliff. Districts are encouraged to spend funds when they become available as quickly as possible to help save and create jobs.
Q9: Is there additional ARRA funding for school districts during the FY2009 year that has not been made available yet nor included in the district's state aid runs? Should districts be planning to receive additional ARRA funds during the upcoming 2009-10 school year?
A: Yes. The US Department of Education website (http://www.ed.gov/about/overview/budget/statetables/index.html ) indicates that New York State will receive ARRA funding of approximately $260 million in Title I School Improvement funds, $55 million in Title II-D Enhancing Education Through Technology Funds and $6 million for Education for Homeless Children and Youth. In addition, the Secretary of Education will be awarding Incentive and Innovation Grants.
We have not received federal guidance on these funds yet, but expect the vast majority of these funds will flow to eligible school districts and eligible charter schools through a formula and/or competitive grant process. Additional information will be posted to this website as it becomes available.
Q10: If a district doesn't include stimulus funds in the budget that is approved by the voters, can they add them later?
A: Yes, stimulus funds, including stabilization funds, are federal grants for specific purposes, these funds can be appropriated by resolution by the board of education at any time for such purposes (Education Law ยง1718). Therefore, any increases in ARRA funds beyond what was anticipated when the budget was developed can be appropriated later.
Q11: Must a district use ARRA fiscal stabilization funds to restore all jobs before using the funds for other activities?
A: Restoration of jobs is a high priority. The decision on how to balance the restoration of jobs with other activities is up to the discretion of the local school district.
Q12: In addition to using ARRA funds to avert layoffs, what else can ARRA funds be used for?
A: Information on how ARRA funds can be used is included in the following documents:
- The U.S. Department of Education's April 24, 2009 guidance, "Using ARRA funds to Drive School Reform and Improvement" - http://www.ed.gov/policy/gen/leg/recovery/index.html
- Memo to the field from Johanna Duncan-Poitier, Senior Deputy Commissioner of Education - P-16, on Permissible Expenditures of the American Recovery and Reinvestment Act of 2009 (ARRA) State Fiscal Stabilization Fund for Education (posted on this website)
Q13: How should school districts balance the use of Recovery funds to add new positions with the need for sustainability after the funds go away?
A: Consistent with federal guidance, districts might consider short-term positions to begin a new type of instructional process as an appropriate use of Recovery funds. Districts may also wish to hire independent consultants to conduct curriculum alignments, train teachers in reading literacy instructional strategies, or perform energy audits and make building improvements etc.
Q14: Can funds be used for contracted services instead of adding positions?
A: Yes, provided the relationship with the school district and the duties performed by the individual or business qualifies them to be classified as an independent contractor and not as an employee of the school district receiving the services.
Q15: Is there any transferability between titles for the Recovery money? For example, between Title I to Title IID?
A: No, there is no transferability between titles under the awards for each individual federal Title and IDEA funds.
Q16: Do nonpublic schools have the ability to access Recovery funds and/or Stabilization funds?
A: Nonpublic elementary and secondary schools are not local educational agencies and therefore are not eligible to receive direct funding under Title I, Part A, McKinney-Vento or the other ESEA programs for which additional ARRA funds are provided, or under IDEA, Part B. However, all the 2009 funding for Title I Part A and most of the other ESEA programs, including the additional ARRA funds, are subject to equitable participation requirements, and the IDEA has similar requirements for funding equitable services to students with disabilities who are parentally placed in nonpublic schools.
The State Fiscal Stabilization Funds are dedicated to restoring State funding for elementary and secondary education and public higher education institutions and providing funding for governmental services, are being used to restore cuts in school aid to school districts, aid to public colleges and universities and certain other programs, and have not been dedicated to nonpublic schools. There is a prohibition in the federal law against use of State Fiscal Stabilization Funds to provide financial incentives to students to attend nonpublic schools, unless they are used to provide special education and related services to students with disabilities.
At this point, it is not clear whether nonpublic elementary and secondary schools could participate in the Innovation Fund program in partnership with an LEA or a consortium of schools and additional federal guidance is needed on that subject.
16A. Are there prohibitions against certain uses of State Fiscal Stabilization Funds for Education?
A: Yes, an LEA may not use Education Stabilization funds for:
- Payment of 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;
- Swimming pools;
- 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;
- Financial assistance for students to attend private elementary or secondary schools, unless the funds are used to provide special education and related services to students with disabilities, as authorized by the IDEA;
- School modernization, renovation, or repair that is inconsistent with State law; or
- Restoring or supplementing a rainy day fund.
Title I
Q17: How long does a district have to spend ARRA Title I funds?
A: The federal guidance on the ARRA Title I funds states that 85% of the Title I funds must be obligated by September 30, 2010. The last day to obligate 100% of the ARRA Title I funds is September 30, 2011. As with the majority of federal funds, recipients will have 90 days from the end of the period of availability to liquidate, i.e., spend, all funds.
IDEA
Q18: Relating to IDEA funding, what is meant by reduction of Maintenance of Effort with 50% of the increase in IDEA funds from 2008-09 to 2009-10?
A: For any fiscal year in which the total allocation received by the Local Education Agency (LEA) under IDEA Part B exceeds the amount of the previous year, the LEA may, if eligible, reduce the level of expenditures for local maintenance of effort by 50% of the increase. While all IDEA funds must still be used for special education services consistent with IDEA, the districts may use an amount up to 50% of the increase to reduce their local maintenance of effort so long as an equal amount of local funds are used for allowable ESEA activities. So, for example, a district whose IDEA allocations between 2008-09 and 2009-10 increased by $100,000; they may reduce their IDEA maintenance of effort (i.e., the amount previously spent on special education services using State and local funds) by up to $50,000. However, they must retarget the $50,000 of State or local funds towards allowable activities under ESEA. This flexibility applies only to some districts; certain districts are prohibited reducing their local maintenance of effort if they are in a certain status. Further details and information have been provided in the IDEA application packet which was disseminated to districts recently.
Q19: Will Approved Special Education Programs (ASEPs) Schools receive any of the increased funding provided to districts under IDEA?
A: Yes, Education Law section 4410-b requires that when federal funds are provided to local educational agencies under sections 611 or 619 of the IDEA, a per capita amount must be paid to approved special education providers (ASEPs) from local funds or from IDEA Part B funds. The additional ARRA IDEA funds are provided as a part of the total 2009 IDEA allocation, and this requirement applies to the total amount, including the ARRA funds. If the school district chooses to use IDEA funds for payments to ASEPs, the regular IDEA funds must be used for this purpose. If ARRA funds are used for this purpose, the LEA will be required to submit detailed reports on the use of funds by the ASEPS on a quarterly basis. Information about IDEA funds and the application, including IDEA ARRA funds is available at http://www.p12.nysed.gov/specialed/finance/.
Q20: Will Parentally-Placed Students receive any of the increased funding provided to districts under IDEA?
A: Yes, the total amount of the 2009 Part B allocation, including ARRA and regular IDEA funds, are subject to the requirements of the IDEA for funding equitable services to students with disabilities who are parentally placed in nonpublic schools. A proportionate share of the total 2009 IDEA allocation must be used for special education programs and services for students with disabilities parentally placed in nonpublic schools.
Q21: Will Charter Schools receive any of the increased funding provided to districts under IDEA?
A: Yes, Section 2856 of the Education Law requires the school district of residence, as the local educational agency, to pay to each charter school that opts to provide special education services to a student with a disability attending the charter school the state and federal aid attributable to that student, in proportion to the level of service provided by the charter school. This requirement applies to all IDEA Part B funds, including the ARRA IDEA funds.
Cultural Education and Libraries
Q22: My public library has a shovel-ready project. How do we get our stimulus funds?
A: The American Recovery and Reinvestment Act of 2009 does not include a specific allocation of funds dedicated solely for library modernization, repair, renovation, or construction.
However, there may be avenues for libraries to apply for facility improvement funds under the rural development, technology infrastructure, and energy provisions of the Act which are being administered by other state and federal agencies. For more information on these opportunities, see the information at http://www.recovery.ny.gov/ .
In addition, the 2009 New York State Budget included an appropriation of $14 million in capital funds for public library construction which provide up to 50 percent of approved costs of acquisition, construction, renovation, or rehabilitation of public library facilities. For information about this program, please contact Grace Kelly at gkelly@mail.nysed.gov or read information at http://www.nysl.nysed.gov/libdev/construc/index.html.
Q23: May ARRA funds be used to restore the jobs of school library media specialists?
Yes, a district may use the state fiscal stabilization funds portion of ARRA to restore school library media specialist positions as these funds are not subject to a supplement, not supplant requirement. School library media specialists are certified teachers who play a significant role in the improvement of academic achievement of all students. Improved academic achievement is one of the objectives behind ARRA education funding.
This information is based on the latest guidance from the U.S. Department of Education which is subject to change. We will continue to provide updates as we receive additional information. Thank you.