Education Budget

On May 7 the Office of Management and Budget released the President’s budget proposal for fiscal year 2010. As Early Ed Watch reported at the time, that budget includes funding for several new early education programs, including Title I Early Childhood Grants, Early Learning Challenge Fund, Early Literacy Grants, and Home Visitation. Yesterday, we looked at proposals for Title I Early Childhood Grants. Today we consider the Early Learning Challenge Fund. 

During his 2008 campaign for the presidency, then Senator Barack Obama put forward a “Zero-to-Five” early childhood agenda. The centerpiece of this agenda was a proposal to create a new program of Early Learning Challenge Grants designed to both help and push states to improve quality and coordination amongst the various early childhood care and education programs that serve young children below the age of compulsory school attendance. The President’s fiscal year 2010 budget requests $300 million in funding for an Early Learning Challenge Fund to make such grants to states.

The Department of Education recently approved the State Fiscal Stabilization Fund (SFSF) applications of five more states - Idaho, Massachusetts, North Carolina, Virginia, and Washington. These states join the 16 that have already begun to receive funds. As of May 22nd, nearly $773 million in SFSF monies have been disbursed to states. (Previous posts analyzing the applications of the first 16 states can be found here and here.)

These five additional states make up another $4.0 billion in Education Stabilization funds and $886 million in Government Services funds. According to the Center for Budget and Policy Priorities, Massachusetts is expected to face the largest budget deficit as a percent of total state spending in fiscal year 2009 - 14.2 percent - while Virginia will experience the smallest - 6.7 percent.

At Ed Money Watch, we discuss and analyze major issues affecting education funding. In our Friday News Roundup, we try to highlight interesting stories that might otherwise get overlooked. These stories emphasize how federal and state policy changes can affect local schools and districts.

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Yesterday U.S. Secretary of Education Arne Duncan testified before the House Education and Labor Committee on President Obama's fiscal year 2010 Education budget request. While little new information arose during the secretary's prepared testimony, a few interesting tidbits came up during the committee members' questions.

Throughout his testimony, Secretary Duncan reiterated the role that he thinks the Department of Education (ED) should play in improving public education. Specifically, he said that ED should be there to encourage states to "do the right thing" by students, not force them into compliance with certain requirements. Similarly, he stressed the importance of innovation at the state and local levels, rather than at the federal level. He believes that the best ideas come from schools and practitioners, not the federal government. Instead, the federal government should help incent states to allow for innovation and new ideas at the local level.

The Department of Education recently approved the State Fiscal Stabilization Fund applications of three more states - Indiana, Rhode Island, and Tennessee. These states join the 13 that have already begun to receive funds. As of May 15^th, nearly $565 million in SFSF monies have been disbursed to states. (A previous post analyzing the applications of the first 13 states can be found here.)

Indiana, Rhode Island, and Tennessee comprise an additional $1.7 billion in Education Stabilization funds and $386 million in Government Services funds. Of the three states, Rhode Island is expected to face the largest budget deficit as a percent of state spending - 11.4 percent - while Indiana is expected to face the smallest - 8.0 percent.

On May 7 the Office of Management and Budget released the President’s budget proposal for fiscal year 2010. As Early Ed Watch reported at the time, that budget includes funding for several new early education programs, including Title I Early Childhood Grants, Early Learning Challenge Fund, Early Literacy Grants, and Home Visitation. Over the next few weeks, we’ll be taking a closer look at these proposed programs. Today, we turn to Title I Early Childhood Grants.

News reports suggest that some schools and school districts have started receiving at least the beginning of the $44 billion in stimulus funding made available on April 1^st. This money flows through three programs in particular - No Child Left Behind Title I Part A, Individuals with Disabilities Education Act (IDEA) Part B, and the State Fiscal Stabilization Fund (SFSF). While all 50 states and the District of Columbia have received at least 50 percent of their Title I and IDEA allocations, only the 13 states whose SFSF applications have been approved have received any of that available money. Below we discuss how some school districts have decided to use the funds.

As we've discussed previously, guidance states that the stimulus funds are to be used for two primary, and potentially conflicting, purposes. The first, saving and creating jobs, is an inherent goal of the stimulus bill particularly for states experiencing severe budget deficits. The second, supporting reforms to improve student academic achievement, will likely be sidelined in many districts as they work to keep their schools open and teachers in their classrooms. However, some districts have attempted to do both.

At Ed Money Watch, we discuss and analyze major issues affecting education funding. In our Friday News Roundup, we try to highlight interesting stories that might otherwise get overlooked. These stories emphasize how federal and state policy changes can affect local schools and districts.

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UPDATE: Updates on State Fiscal Stabilization Applications can be viewed here.

The State Fiscal Stabilization Fund (SFSF) is the largest source of education funds from the American Recovery and Reinvestment Act (ARRA). This fund is intended to help states fill the gaps in both their K-12 and higher education budgets caused by the recent economic climate. Although most states are in the process of submitting or waiting for approval of their State Fiscal Stabilization Fund applications, 13 states have already started to receive funds. Below we discuss the applications that these states submitted for how they intend to use the SFSF funds they have been allocated.

In the application, each state is required to present how much of the Education Stabilization funds (81.8 percent of the total SFSF allocation) it will use in fiscal years 2009 and 2010 for K-12 and higher education separately and how much money will remain for use in 2011. Additionally, states are required to describe how they will spend their Government Services funds (18.2 percent of the SFSF allocation).

At Ed Money Watch, we discuss and analyze major issues affecting education funding. In our Friday News Roundup, we try to highlight interesting stories that might otherwise get overlooked. These stories emphasize how federal and state policy changes can affect local schools and districts.

Obama Offers Compromise on DC Voucher Program

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