American Recovery & Reinvestment Act
NAEYC Webinar
March 2, 2009
Purpose
President Obama statement February 14, 2009
It will save or create more than 3.5 million jobs
over the next two years, ignite spending by
business and consumers alike, and lay a new
foundation for our lasting economic growth and
prosperity.
Timeline
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Enacted February 17, 2009
Governors have up to 45 days after date of
enactment to “certify” that they will take the
ARRA funds -- State Legislature may certify the
state's intention to use any funds in ARRA not
accepted for use by the Governor
Unless otherwise specified, all funds
appropriated under ARRA remain available for
obligation until September 30, 2010
CCDBG
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$2 billion dollars – states have 2 years to
spend the funds
 Discretionary
funds = no state match required
on these funds
 Goes through the normal CCDBG formula,
including the minimum set aside of 4% for
quality
 “shall be used to supplement, not supplant
State general revenue”
CCDBG Set Asides
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Above the statutory requirement that
states use at least 4% of grant for quality,
set asides of
 $255
million, of which $93.5 million for
activities that improve the quality of
infant/toddler care
CCDBG
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While expected to serve many more children,
opportunities with the quality funds and subsidy system
improvements
 Quality set aside examples
 using quality dollars to support grants to programs
to improve along the QRIS with grants
 expanding scholarships and compensation awards
 hire infant/toddler specialists to work with
programs
CCDBG
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Improve subsidy policy
– a- year eligibility determination
 Lower family co-pay
 Lower eligibility threshold
 Job search as families become unemployed
 Education as families lose jobs and go back to school
 Once
Head Start/Early Head Start
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Separates funding – both spend out over 2 years
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$1 billion for Head Start
$1.1. billion for Early Head Start – up to 10% reserved for
training and technical assistance and up to 3% reserved for
monitoring
COLA, set asides for quality, migrant and seasonal, tribal, early
learning advisory councils come out of the $1 billion for Head
Start
Expansion funds left over from the $1 billion split between Head
Start and Early Head Start
Head Start/Early Head Start
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Application
 Expansion
funds
 New Early Head Start
Asking for time for start up of new Early Head
Start to recruit teachers, etc. as in the first
year of the authorized program
Encouraging Head Start programs to serve 3
years old
Title I
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$13 billion
 $3
billion for school improvement grants (state
grants, SEA holds 5% and remainder goes to
low performing school districts for
improvement efforts)
 $10 billion to local school districts along a
formula that is more heavily weighted for
poverty: targeted assistance grants and
education finance incentive grants
Other Education Funds and
Individual Aid
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State stabilization – restoration, incentive grants,
innovation grants
IDEA Part B
IDEA Part C
IDEA section 619
Title II Higher Education Act Part A
Pell Grants, Work Study
Higher education tax credit
ARRA funds for Education and
MOE
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Maintenance of effort provisions in underlying statutes –
ESEA/NCLB and IDEA -- continue to apply to new funds.
With prior approval from the Secretary of Education, a State
Education Agency or local education agency that receives funds
under the State Fiscal Stabilization Fund can treat any portion of
such state fiscal stabilization funds that is used for elementary and
secondary education or postsecondary education as non-Federal
funds for the purpose of any requirement to maintain fiscal effort
under any other program, including Part C of the Individuals with
Disabilities in Education Act.
For state fiscal stabilization funds, Governor shall ensure that the
State will in each of fiscal years 2009, 2010, and 2011, maintain
State support for elementary, secondary, and public postsecondary
education at least at the levels in fiscal year 2006
Title I birth through K-12
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US Dept of Ed guidance
Can use for children below compulsory school age
Can use with other funds for full day/full year programs
District can directly provide 0-5 or contract with a Head Start, Even
Start, Early Reading First, or “comparable public early childhood
program”
When using Title I for children below K, must follow the Head Start
standards
Teacher qualifications with Title I – Preschool teachers working in
Title I preschool programs, in States that consider preschool as part
of public elementary education, must meet the applicable Title I
teacher qualification requirements
Title I Teacher Qualifications
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According to 2004 guidance by US Dept of ED
 “Preschool teachers working in Title I preschool
programs, in States that consider preschool as part of
public elementary education, must meet the
applicable Title I [NCLB] teacher qualification
requirements “
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http://www.ed.gov/policy/elsec/guid/preschoolguidance.doc -- pages 19-20
Title I and Professional Development
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Title I funds may be used to provide professional development for any teacher or
paraprofessional working in a Title I preschool program supported partly by Title I
funding even if their salary is not paid for with Title I funds if the training is related
to the Title I program and is designed to meet the educational needs of Title I
children.
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For example, Title I funds may be used for professional development for a Head Start
teacher working in a preschool program jointly funded by Title I and Head Start if the
training is related to the Title I program or is designed to help the Head Start teachers
meet the educational needs of Title I children.
Title I funds may also be used for joint professional development for non-Title I
preschool teachers and paraprofessionals working in programs with no Title I
funds, such as Head Start staff, and for Title I elementary school teachers and
paraprofessionals. For example, Title I funds may be used for such joint
professional development if the children served in the non-Title I preschool are
likely to be attending a Title I school when they enter kindergarten, and if the
purpose of the professional development is to improve coordination between the
non-Title I preschool and the Title I school or to facilitate children’s transition from
preschool into the Title I elementary school.
IDEA Part C and 619
Additional $500 million for Part C
 Additional $400 million for 619 preschool
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Part C – new policy triggered by
appropriation beyond $460 million
Education Stabilization
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3 parts in Title XIV of the ARRA
 Funds
to states to restore cuts in state funds to K-12
and postsecondary education, “and as applicable,
early childhood education programs and services”
 By governor application, Incentive Grants to improve
school achievement
 By local school district or LEA/nonprofit partnership
application, Innovation Funds to scale up effective
models, public/private partnerships
Education Stabilization – Assurances
and Maintenance of Effort
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Governor shall ensure that the State will in each of fiscal years
2009, 2010, and 2011, maintain State support for elementary,
secondary, and public postsecondary education at least at the levels
in fiscal year 2006, and
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achieve equity in teacher distribution in low income school districts,
establish a longitudinal data system that includes the elements
described in the America COMPETES Act,
 enhance the quality of academic assessments relating to English
language learners and students with disabilities, and improve State
academic content standards and student academic achievement
standards, and
 ensure compliance with corrective actions required for low-performing
schools
Restoration
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For K-12, determines how to spread those funds
under its state aid formula
For public higher education institutions to restore
state support to the greater of fiscal year 2008
o4 2009
For early childhood, no formula suggested in the
statute
Remaining funds after restoring shortfall are
distributed to local educational agencies
according to Title I formula
Incentive Grants
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Governor submits an application (50% of grant will go to local
educational agencies based on their Title I share) that describes the
State's progress in each of the following as well as achievement and
graduation rates, and how the State will use the grant to continue
making progress toward the state’s academic achievement
standards
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achieve equity in teacher distribution in low income school districts,
establish a longitudinal data system that includes the elements
described in the America COMPETES Act,
enhance the quality of academic assessments relating to English
language learners and students with disabilities, and improve State
academic content standards and student academic achievement
standards, and
ensure compliance with corrective actions required for low-performing
schools
Innovation Grants
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$650 million as “reward” for having made significant gains in closing
achievement gap
Uses of funds: expand and serve as model of best practice; work in
partnership with private sector and philanthropic community; identify and
document best practices to share and that can be taken to scale
Eligible applicants:
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Local educational agency
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Partnership of a nonprofit organization and one or more local
educational agencies or a consortium of schools
US Dept of Education expects to release guidance the end of March
Public Safety, Government
Services, Education
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$8.7 billion in this grant fund that can be
used on any activity authorized by
ESEA/NCLB, IDEA and for school and
higher education “modernization,
renovation and repair”
Higher Ed
Title II PART A Teacher Quality
Partnerships
 Pell Grants
 Work-Study
 Expansion of Hope tax credit now called
American Opportunity tax credit for higher
education
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Teacher Quality Partnerships
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Application from federal level to local partnership
Required partners
 Baccalaureate teacher preparation institutions
 High need local school district
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Allowable partners: early childhood education program (child
care, Head Start, state preK)
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See summary at
www.naeyc.org/policy/federal/pdf/SummaryEcProvisionsHeoa.pd
f
New American Opportunity Credit
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New name for Hope tax credit for higher education
$2500 a year for the first 4 years of college
Covers tuition and fees, books, materials for coursework
Credit is 100% of the first $2,000, then 25% of the next
2,000
Partially refundable: low income student who does not
owe taxes can receive up to 40% of qualifying expenses
which is a maximum of $1,000
This expansion applies to 2009 and 2010 – President’s
budget requests making expansion permanent
TANF
$3 billion for Emergency Contingency
Fund to states to serve increase in families
due to economic downturn
 $319 million supplemental funds for states
with high population growth and/or
increased poverty
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Data
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Keeping track of
 Jobs/work
created with the funds
 Quality uses and how to collect information on use
and impact
 Children served and where (may be multiple settings)
 Coordination of funds under ARRA and other funds
 Continued unmet need of access, quality, workforce
Transparency Rules
Details at www.recovery.gov
 Federal agency websites will report grants,
contracts, and how spent
 Federal recipients’ use of funds will be
publicly reported
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What to do now
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Meet with state child care administrator on subsidy and quality funds
Set up meetings with governors’ aides and legislature leadership regarding
which funds governors will certify acceptance and what legislature will
request
Talk to you state superintendents and state school boards associations
Talk to the State Title I director in the State Educational Agency
Meet with local school districts receiving the Title I funds for discussions of
use on preschool programs in schools and contracts with Head Start, high
quality child care – summer extension, September expanded enrollment
and hiring teachers and staff, joint professional development of communitybased and school based preschool, k and 1st grade teachers
Meet with Governor on stabilization funds to discuss birth to age 8
restoration, innovation funds
What to do now
Talk to colleges of education that prepare
early childhood educators about the Title II
Partnership Grants to be partner
applicants
 Get the word out to colleges, program
directors, staff on the New American
Opportunity tax credit for higher education
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Resources
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Chart of various funds under ARRA
www.naeyc.org/policy/federal/pdf/FinalAgreementChart.pdf
State by state allocations of CCDBG, including the allocation of the $255
million set aside, and other CCDBG recommendations under the ARRA
http://childcareandearlyed.clasp.org/reinvestinginchildcare.html
State allocations for Title I and IDEA Parts B, C and section 619 grants
www.ed.gov/about/overview/budget/statetables/09arrastatetables.pdf
Within-state allocations of Title I –
www.ed.gov/about/overview/budget/titlei/fy09recovery/index.html
State allocations for other programs in ARRA http://www.cbpp.org/1-2209bud.htm
Using the ARRA for QRIS development and implementation
www.buildinitiative.org/content/whats-new
State ARRA websites www.recovery.gov/?q=content/state-recovery-page