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Connecticut State Department Connecticut State Department of Educationof Education

American Recovery and Reinvestment Act American Recovery and Reinvestment Act (ARRA):(ARRA):

Strategic Planning, Community ConsensusStrategic Planning, Community Consensus

Mark K. McQuillanMark K. McQuillanCommissioner of EducationCommissioner of Education

May 26, 2009May 26, 2009

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Presentation OverviewPresentation Overview A. Goals of PresentationA. Goals of Presentation

1. Overview of the Federal1. Overview of the Federal American Recovery and American Recovery and Reinvestment Act (ARRA)Reinvestment Act (ARRA)2. Guidance Updates, Flexibility Provisions, and 2. Guidance Updates, Flexibility Provisions, and discussiondiscussion

IDEA (611 and 619) Individuals with Disabilities IDEA (611 and 619) Individuals with Disabilities Education ActEducation Act

Title I A Education of DisadvantagedTitle I A Education of Disadvantaged McKinney-Vento: Homeless EducationMcKinney-Vento: Homeless Education

B. Review of Strategic Options for Fund UseB. Review of Strategic Options for Fund Use 1.Assumptions1.Assumptions2. Review of Templates & Use of Funds Rubric2. Review of Templates & Use of Funds Rubric3. White Paper3. White Paper

C. Work Session on IDEA TemplateC. Work Session on IDEA TemplateD. Questions & AnswersD. Questions & Answers

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Overview Overview The U. S. Government will invest over an additionalThe U. S. Government will invest over an additional$100B in education spending over the next two years. $100B in education spending over the next two years. FourFourprinciples guide the distribution of funds:principles guide the distribution of funds:1.1. Education funds were delivered to states as early as the Education funds were delivered to states as early as the

end of March 2009, and states must spend the funds end of March 2009, and states must spend the funds quickly to save and create jobs.quickly to save and create jobs.

2.2. States need to make States need to make assurancesassurances that they will that they will emphasize innovation and reform to improve student emphasize innovation and reform to improve student achievement outcomes and close the achievement gap.achievement outcomes and close the achievement gap.

3.3. Recovery funds will need to be tracked and reported Recovery funds will need to be tracked and reported separatelyseparately from regular annual Consolidated Grant from regular annual Consolidated Grant Application and IDEA funds, to ensure transparency.Application and IDEA funds, to ensure transparency.

4.4. Funds must be invested in sustainable initiatives.Funds must be invested in sustainable initiatives.

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ARRA Goals and AssurancesARRA Goals and AssurancesIn order to apply for ARRA funds, the GovernorIn order to apply for ARRA funds, the Governormust provide USDE with written assurances that CTmust provide USDE with written assurances that CThas addressed and will continue to improve upon:has addressed and will continue to improve upon:

ARRA GoalsARRA Goals1.1. Academic Standards and Assessments of Student Academic Standards and Assessments of Student

Learning and AchievementLearning and Achievement2.2. Equitable Distribution of Quality TeachersEquitable Distribution of Quality Teachers3.3. Data Systems to Track Student PerformanceData Systems to Track Student Performance4.4. School Improvement Initiatives for Schools and School Improvement Initiatives for Schools and

Districts in Need of Improvement Districts in Need of Improvement

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Sources of ARRA Funds for Sources of ARRA Funds for 2009 - 20112009 - 2011

Three primary sources of ARRA funds are available to states:Three primary sources of ARRA funds are available to states:SourceSource CT’s AwardCT’s Award

Stabilization Block GrantsStabilization Block Grants $542 million$542 million Entitlement GrantsEntitlement Grants $243 million$243 million Competitive Grants TBD*Competitive Grants TBD*

• Incentive GrantsIncentive Grants• Innovation Grants Innovation Grants

*Distributed at discretion of Secretary of Education*Distributed at discretion of Secretary of Education

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Basic Stabilization Funds: Process Basic Stabilization Funds: Process and Guidanceand Guidance

Stabilization funds are to be directed into education funding.Stabilization funds are to be directed into education funding. Stabilization allocations must be reserved exclusively for education and may Stabilization allocations must be reserved exclusively for education and may notnot be used be used

for municipal expenditures.for municipal expenditures. Stabilization allocations are aimed at minimizing the loss of teachers, administrators and Stabilization allocations are aimed at minimizing the loss of teachers, administrators and

other public school employeesother public school employees

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Stabilization Fund UseStabilization Fund Use Districts must apply to the State Department of Ed. Districts must apply to the State Department of Ed.

(SDE) for Stabilization Funds under a separate (SDE) for Stabilization Funds under a separate application, in compliance with AARA’s application, in compliance with AARA’s accountability provisions;accountability provisions;

Stabilization funds will be sent separately by SDE Stabilization funds will be sent separately by SDE to districts;to districts;

Governor will sign stabilization application by the Governor will sign stabilization application by the end of May;end of May;

Legislature will hold public hearings for 2 weeks;Legislature will hold public hearings for 2 weeks; Deadline for submission to USDE is July 1Deadline for submission to USDE is July 1stst ; ; Objective of Stabilization Funds remains Objective of Stabilization Funds remains

unchanged.unchanged.

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Entitlement Grants (Two-Year Entitlement Grants (Two-Year Totals)Totals)

Title I, Part A - Education of the Disadvantaged ($70.8 million Title I, Part A - Education of the Disadvantaged ($70.8 million - 50% available Spring, 50% available Fall)- 50% available Spring, 50% available Fall)

Title I, Part A - School Improvement Title I, Part A - School Improvement ($24.7 million - Fall)($24.7 million - Fall)

Title II, Part D Educational Technology Title II, Part D Educational Technology ($4.7 million - Fall($4.7 million - Fall))

IDEA B - 611: Children with Disabilities IDEA B - 611: Children with Disabilities ($132.9 million -($132.9 million - Spring)Spring)

IDEA B - 619: Preschool IDEA B - 619: Preschool ($5.1 million -Spring)($5.1 million -Spring)

McKinney-Vento - Homeless Children McKinney-Vento - Homeless Children ($0.2 million - ($0.2 million - CompetitiveCompetitive))

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IDEA Part BIDEA Part B(Individuals with Disabilities Education Act)(Individuals with Disabilities Education Act)

Ages 3-21 (611) and Preschool (619)Ages 3-21 (611) and Preschool (619)

Purpose and Use of FundsPurpose and Use of Funds

Excess cost of providing special education & related services Excess cost of providing special education & related services to students with disabilitiesto students with disabilities

Early Childhood programs and activitiesEarly Childhood programs and activities Flexibility Provisions/StrategiesFlexibility Provisions/Strategies

50% Maintenance of Effort (MOE) Adjustment Strategy50% Maintenance of Effort (MOE) Adjustment Strategy Local and/or State Funds Exceed MOE StrategyLocal and/or State Funds Exceed MOE Strategy 15 % Coordinated Early Intervening Services Strategy15 % Coordinated Early Intervening Services Strategy

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IDEA Part B cont.IDEA Part B cont.TimelineTimeline

50% of ARRA-IDEA funds will be distributed in the 50% of ARRA-IDEA funds will be distributed in the spring after application is approved (Application spring after application is approved (Application deadline is July 1deadline is July 1stst, 2009);, 2009);

50% ARRA-IDEA funds in the fall, any revisions 50% ARRA-IDEA funds in the fall, any revisions due Sept. 18due Sept. 18

Flexibility Provisions/Strategies

1.1. 50% Maintenance Of Effort (MOE) 50% Maintenance Of Effort (MOE) Adjustment StrategyAdjustment Strategy

2.2. Local and/or State Funds Exceed MOE StrategyLocal and/or State Funds Exceed MOE Strategy

3.3. 15 % Coordinated Early Intervening Services 15 % Coordinated Early Intervening Services StrategyStrategy

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Maintenance of Effort (MOE)Maintenance of Effort (MOE)

With certain exceptions, Part B funds must not be used With certain exceptions, Part B funds must not be used by a district to reduce the level of expenditures for the by a district to reduce the level of expenditures for the education of children with disabilities made by the education of children with disabilities made by the district from local funds below the level of those district from local funds below the level of those expenditures for the preceding year expenditures for the preceding year

U.S. Department of EducationU.S. Department of EducationOffice of Special Education ProgramsOffice of Special Education ProgramsBuilding the Legacy : Retrieved March 23, 2009 from Building the Legacy : Retrieved March 23, 2009 from http://www.ed.gov/results.html?cx=017789009494528204701%3Auzmeqn9qqxo&cof=FORID%3A9&hq=-archived%3A&ie=UTF-8&q=Fiscal+Accountability#884

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Supplement not Supplant

If an LEA maintains (or exceeds) its level of local, or state and local, expenditures for special education and related services from year to year (in this case 2008-09 to 2009-2010), either in total or per capita, then the IDEA (standard and/or ARRA) funds are, in fact, supplementing those local, or state and local, expenditures and the LEA has met its maintenance of effort (MOE) and supplement/not supplant requirements.

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Use of IDEA FundsUse of IDEA FundsStrategy 1: 50% Strategy 1: 50%

Maintenance Of Effort Maintenance Of Effort (MOE) Adjustment (MOE) Adjustment

If an LEA does maintain (or exceed) its level of If an LEA does maintain (or exceed) its level of local, or state and local, expenditureslocal, or state and local, expenditures for special for special education and related services, the LEA can, by an education and related services, the LEA can, by an amount equal to 50% of the increase to their IDEA amount equal to 50% of the increase to their IDEA funds, decrease their local special education/related funds, decrease their local special education/related services expenditures, andservices expenditures, and

use that same amount of local funds for use that same amount of local funds for activities activities allowable under the Elementary and Secondary allowable under the Elementary and Secondary Education Act (ESEA).Education Act (ESEA).

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Use of IDEA FundsUse of IDEA FundsStrategy 1 (cont): 50% Maintenance Of Strategy 1 (cont): 50% Maintenance Of

Effort (MOE) AdjustmentEffort (MOE) Adjustment

Office of Special Education Programs’ Office of Special Education Programs’ indicates that unless an LEA has been indicates that unless an LEA has been identified as “Meet Requirements” on its identified as “Meet Requirements” on its IDEA Determinations of the State IDEA Determinations of the State Performance Plan, it is prohibited from Performance Plan, it is prohibited from reducing its MOE under IDEA section 613(a)reducing its MOE under IDEA section 613(a)(2)(C) for the fiscal year in which it did not (2)(C) for the fiscal year in which it did not achieve the “Meets Requirements” category. achieve the “Meets Requirements” category.

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Local Operating Budget FY 2010Total $9.0 MESEA - $2.1MTotal $6.9MMeets 2010 MOE requirement of $9.0M

Local Operating Budget FY 2011 (Level Funded)

Total $6.9MMeets 2011 MOE requirement of $6.9M

Special Education Special Education

2010[(B + C) – A] X 50% = $2.1 M Increase $2.1M over 2009

2011D – (B + C) = -$3.8M ($0) No increase over 2010

Maintenance of Effort Sample Calculation:Use of 50% of the difference between fiscal year allocations

If you are going to offset your local budget by 50% of the increase and use the CEIS allowance, check the rules related to the use of CEIS funds.

A B C D E

IDEAStandard

’09

IDEA Standard

‘10

IDEAARRA

’10

IDEAStandard

’11

IDEAARRA

‘11

$3.0 M $3.2 M $4.0 M $3.4 M 0

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Use of IDEA FundsUse of IDEA FundsStrategy 2: Local/State Strategy 2: Local/State

Funds for Special Funds for Special Education Exceed MOEEducation Exceed MOE

When a district meets its required local/state MOE When a district meets its required local/state MOE from one year to the next for special education, the from one year to the next for special education, the district has met the supplement/not supplant district has met the supplement/not supplant requirement under IDEA, Part B.requirement under IDEA, Part B.

If local/state special education costs in 2009-2010 If local/state special education costs in 2009-2010 exceed costs in 2008-2009, the Board can reduce its exceed costs in 2008-2009, the Board can reduce its special education budget by that excess amount and special education budget by that excess amount and use these local/state funds for non-special education use these local/state funds for non-special education personnel, services and activities without considering personnel, services and activities without considering it supplanting.it supplanting.

Use of IDEA FundsUse of IDEA FundsStrategy 2 (cont): Local/State Funds for Strategy 2 (cont): Local/State Funds for

Special Education Exceed MOESpecial Education Exceed MOEFor example:For example:

Board’s expenditures from state/local funds in 2008-Board’s expenditures from state/local funds in 2008-09 equal $1,000,000.09 equal $1,000,000.

Board’s expenditures from state/local funds in 2009-Board’s expenditures from state/local funds in 2009-2010 equal $1,200,000.2010 equal $1,200,000.

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Use of IDEA FundsUse of IDEA FundsStrategy 2 (cont): Local/State Funds for Strategy 2 (cont): Local/State Funds for

Special Education Exceed MOESpecial Education Exceed MOE

The Board can reduce its special education budget for The Board can reduce its special education budget for 2009-2010 to $1,000,000 and meet the MOE 2009-2010 to $1,000,000 and meet the MOE requirement.requirement.

The Board can take the $200,000 difference and use it The Board can take the $200,000 difference and use it for non-special education expenditures. for non-special education expenditures.

Utilizing the $200,000 to support the local budget Utilizing the $200,000 to support the local budget does not impact MOE as occurs in Strategy 1.does not impact MOE as occurs in Strategy 1.

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Use of IDEA FundsUse of IDEA FundsStrategy 3: Coordinated, Early Strategy 3: Coordinated, Early

Intervening Services Intervening Services Districts may use up to 15% of IDEA Part B (also Districts may use up to 15% of IDEA Part B (also

the ARRA) funds to develop and provide CEIS for the ARRA) funds to develop and provide CEIS for students who are currently not identified as needing students who are currently not identified as needing special education. special education.

However, those districts that disproportionately, by However, those districts that disproportionately, by race, identify, place and/or suspend/expel students, race, identify, place and/or suspend/expel students, cannot choose to use this strategy as the State is cannot choose to use this strategy as the State is required to direct these districts funds for specific use required to direct these districts funds for specific use to address these issues.to address these issues.

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Use of IDEA FundsUse of IDEA FundsStrategy 3 (cont): Coordinated, Early Strategy 3 (cont): Coordinated, Early

Intervening ServicesIntervening Services Each district that implements CEIS must report to the CT Each district that implements CEIS must report to the CT

State Department of Education on:State Department of Education on: the number of children who received CEIS andthe number of children who received CEIS and the number of those children who subsequently received special the number of those children who subsequently received special

education and related services under Part B during the subsequent education and related services under Part B during the subsequent two-year period (i.e. the two years after receiving CEIS).two-year period (i.e. the two years after receiving CEIS).

this is reported on the district’s IDEA grant application under this is reported on the district’s IDEA grant application under Section 5 Section 5

CEIS Memo-Questions 6, 34 CFR 300.226(d)CEIS Memo-Questions 6, 34 CFR 300.226(d)2008 OSEP Leadership Conference2008 OSEP Leadership ConferenceMenlove Doutre & Brown-Clark PresentationMenlove Doutre & Brown-Clark Presentation

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SPECIAL RULE TO MOE/CEISSPECIAL RULE TO MOE/CEIS Under 34 CFR Section 300.205(d), the amount of funds Under 34 CFR Section 300.205(d), the amount of funds

expended by an LEA for CEIS (under Section 300.226) expended by an LEA for CEIS (under Section 300.226) shall count towards the maximum amount of shall count towards the maximum amount of expenditures that the LEA may reduce its MOE.expenditures that the LEA may reduce its MOE.

Thus, if LEAs are utilizing the “50% offset rule” for Thus, if LEAs are utilizing the “50% offset rule” for MOE, they should be subtracting from the 50% MOE, they should be subtracting from the 50% increase to their IDEA entitlements the amount of CEIS increase to their IDEA entitlements the amount of CEIS funds they are planning to use in order to determine the funds they are planning to use in order to determine the amount the LEA can use for MOE purposes.amount the LEA can use for MOE purposes.

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MOE/CEIS ExampleMOE/CEIS Example District A:District A:

IDEA Part B ARRA funds = $790,000IDEA Part B ARRA funds = $790,000 IDEA Part B Standard Increase = 10,000IDEA Part B Standard Increase = 10,000

Total IDEA Increase = 800,000Total IDEA Increase = 800,000

50% Offset Rule Amount = 400,00050% Offset Rule Amount = 400,000 Uses 15% of ARRA for CEIS - $120,000Uses 15% of ARRA for CEIS - $120,000 Amount Available for MOE = $280,000Amount Available for MOE = $280,000

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Title I, Part ATitle I, Part A

Title I, Part A funds Title I, Part A funds distributed based on povertydistributed based on poverty – – state, district and school allocationsstate, district and school allocations

Services provided based on Services provided based on educational neededucational need

Connecticut 2008-09 school year: 179 LEAs, 541 Connecticut 2008-09 school year: 179 LEAs, 541 schools received Title I fundsschools received Title I funds

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Title I Title I

Connecticut’s total 2009-10 school year Title I Connecticut’s total 2009-10 school year Title I allocation: allocation:

Title I regular - $113,293,311(Preliminary)Title I regular - $113,293,311(Preliminary)

Title I ARRA - $70,714,174 (Final)Title I ARRA - $70,714,174 (Final)

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Title I ARRA EligibilityTitle I ARRA Eligibility Eligibility for Title I ARRA funds is based on federal Eligibility for Title I ARRA funds is based on federal

poverty data in the formula USDE uses to allocate poverty data in the formula USDE uses to allocate funds (Census poverty).funds (Census poverty).

Not all districts that receive Title I regular funds are Not all districts that receive Title I regular funds are eligible to receive Title I ARRA funds.eligible to receive Title I ARRA funds.

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Applicable Federal RequirementsApplicable Federal Requirements

AllAll Title I, Part A statutory and regulatory Title I, Part A statutory and regulatory requirements apply to Title I ARRA funds.requirements apply to Title I ARRA funds.

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Supplement not Supplant Supplement not Supplant RequirementRequirement

Title I funds are to be used to supplement, not Title I funds are to be used to supplement, not supplant non-federal funds.supplant non-federal funds.

Intended to ensure that services provided with Intended to ensure that services provided with Title I funds are Title I funds are in addition to, and do not in addition to, and do not replace or supplantreplace or supplant, services that students , services that students would otherwise receive.would otherwise receive.

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Increased Federal MonitoringIncreased Federal Monitoring 50% of states to be monitored this year50% of states to be monitored this year

50% of states to be monitored next year50% of states to be monitored next year

Current federal Title I monitoring protocolCurrent federal Title I monitoring protocol

http://www.ed.gov/admins/lead/account/monitoring/indicators0809.doc

Preparing for 2010Preparing for 2010Education Budget RequestsEducation Budget Requests

USDOE Proposal Builds on ARRAUSDOE Proposal Builds on ARRA $500 M – Title I Early Childhood Grants$500 M – Title I Early Childhood Grants

To be eligible, LEAs must expend some To be eligible, LEAs must expend some Title I ARRA funds on expanding Title I ARRA funds on expanding preschool programs.preschool programs.

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Use of FundsUse of Funds SustainabilitySustainability

Title I ARRA funds available 2009-10 through Title I ARRA funds available 2009-10 through 2010-2011.2010-2011.

85% must be expended by September 30, 201085% must be expended by September 30, 2010 Does not apply to districts that receive less than $50,000 in Does not apply to districts that receive less than $50,000 in

total Title I funds – ARRA and regulartotal Title I funds – ARRA and regular

Percentage limitation on carryover may be waived once Percentage limitation on carryover may be waived once every three years if waiver request reasonable and every three years if waiver request reasonable and necessary.necessary.

What is the Purpose of a Waiver?

District discretion on use of Title I funds

Direct additional funds Title I schools

Support Title I district-wide initiatives

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Possible Title I WaiversPossible Title I Waivers

A school “In Need of Improvement” may request a A school “In Need of Improvement” may request a waiver so it waiver so it does not does not have to spend 10 percent of its Title have to spend 10 percent of its Title I, Part A funds on professional development.I, Part A funds on professional development.

A district “In Need of Improvement” may request a A district “In Need of Improvement” may request a waiver so it waiver so it does not does not have to spend 10 percent of its Title have to spend 10 percent of its Title I, Part A funds on professional development.I, Part A funds on professional development.

A district’s obligation to spend an amount equal to at least A district’s obligation to spend an amount equal to at least 20 percent of its Title I, Part A allocation on 20 percent of its Title I, Part A allocation on transportation for public school choice and on transportation for public school choice and on Supplemental Educational Services (SES) Supplemental Educational Services (SES) may be may be waived.waived.

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Possible Title I WaiversPossible Title I Waivers A district’s responsibility to calculate the per-pupil A district’s responsibility to calculate the per-pupil

amount for SES based on a district’s FY 2009 Title I, amount for SES based on a district’s FY 2009 Title I, Part A allocation Part A allocation may be may be waived.waived.

The prohibition on State Educational Agency’s ability to The prohibition on State Educational Agency’s ability to grant to its districts waivers of the carryover limitation grant to its districts waivers of the carryover limitation more than once every three years more than once every three years may be waived.may be waived.

The Title I, Part A maintenance of effort requirements The Title I, Part A maintenance of effort requirements may be waived.may be waived.

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No Title I WaiversNo Title I Waivers

Districts may Districts may notnot waive: waive: Parent involvement set-aside requirement of 1% Parent involvement set-aside requirement of 1%

for districts receiving more than $500,000. for districts receiving more than $500,000.

The Title I, Part A comparability requirement.The Title I, Part A comparability requirement.

Title I, Part A supplement, not supplant Title I, Part A supplement, not supplant requirement.requirement.

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Waiver ProcessWaiver Process U.S. Department of Education will issue U.S. Department of Education will issue

guidance in the near future regarding the guidance in the near future regarding the information that must be included in a waiver information that must be included in a waiver request and the process for submitting the request and the process for submitting the request.request.

Application ProcessApplication Process Part I of the Consolidated ESEA Application – a Part I of the Consolidated ESEA Application – a

single, streamlined application for Title IA with single, streamlined application for Title IA with separate budget forms for regular Title IA and Title separate budget forms for regular Title IA and Title IA ARRA funds;IA ARRA funds;

Application is available on line;Application is available on line; Due June 16Due June 16thth;; Intent is to have all Title IA ARRA funds approved Intent is to have all Title IA ARRA funds approved

by the end of the year;by the end of the year; Regular Title IA funds will not be received from Regular Title IA funds will not be received from

USDE until July 1, 2009.USDE until July 1, 2009.

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McKinney-Vento: Education for McKinney-Vento: Education for Homeless Children & YouthsHomeless Children & Youths

RFP is currently posted online ;RFP is currently posted online ; Proposals from LEAs for the development and/or Proposals from LEAs for the development and/or continuation of programs that meet the needs of homeless continuation of programs that meet the needs of homeless youth and meets the requirements of the Act;youth and meets the requirements of the Act; Due date: June 22nd;Due date: June 22nd; Funds will be distributed August 2009.Funds will be distributed August 2009.

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Connecticut State Connecticut State DepartmentDepartmentof Educationof Education

Part BPart B

Review of Strategic Options for Fund UseReview of Strategic Options for Fund Use

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Review of Strategies for Building a Review of Strategies for Building a Sustainable, Two-Year PlanSustainable, Two-Year Plan

AssumptionsAssumptions Spend funds strategicallySpend funds strategically Supplement, not supplantSupplement, not supplant Engage in comprehensive planning - All fundsEngage in comprehensive planning - All funds Collaborate with community agenciesCollaborate with community agencies

Use of Funds Rubric Use of Funds Rubric Maximize use of ARRA Funds - White PaperMaximize use of ARRA Funds - White Paper

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Connecticut State Department Connecticut State Department of Educationof Education

Part CPart C

Work Session on IDEA TemplateWork Session on IDEA Template

Work SessionWork Sessiononon

IDEA TemplateIDEA Template

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Ongoing ARRA InformationOngoing ARRA Information

All documents from today’s presentation will be All documents from today’s presentation will be posted to the Commissioner’s Update link on the posted to the Commissioner’s Update link on the SDE website (SDE website (www.ct.gov/sde).

SDE and USDE Guidance to appear on SDE’s SDE and USDE Guidance to appear on SDE’s Recovery Website Recovery Website

Additional information and guidance from USDE will Additional information and guidance from USDE will be posted to the link as it arrives.be posted to the link as it arrives.

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Title I and ARRA ResourcesTitle I and ARRA Resources

www.ed.gov

www.ed.gov/recovery

www.recovery.gov

http://www.csde.state.ct.us/public/cedar/nclb/index.htm

Connecticut State Department of Connecticut State Department of EducationEducation

Part DPart D

Questions & AnswersQuestions & Answers

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