Date: 03/12/2009

Final
Briefing on the Federal Stimulus Package

HOUSE COMMITTEE ON EDUCATION

Votes: View--> Action Taken:
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03:29 PM -- Briefing on the Federal Stimulus Package

Matt Gianneschi, representing the Office of the Governor, and Richard Wenning, representing the Colorado Department of Education (CDE), presented on the education spending in the federal stimulus package, known as the American Recovery and Reinvestment Act (ARRA), which was recently passed by the United States Congress. Dr. Gianneschi shared a handout with the committee (Attachment F). Mr. Wenning reviewed the department handouts with the committee (Attachment G).

090312AttachF.pdf 090312AttachG.pdf


03:33 PM

Dr. Gianneschi explained that he planned on discussing three concepts. He first discussed the State Fiscal Stabilization Fund (SFSF), which he noted contains the largest amount of funding for education in the federal stimulus package. He noted there is a modest amount of discretion in spending the money in the Governor's office, but that the majority of the other funds flow directly through CDE. He explained that the IDEA Part C funding spending is formulaic. He also discussed the Race to the Top Grant Program, which is the incentive funding in the bill, totaling $5 billion, that is completely in the control of United States Department of Education Secretary Arne Duncan. He outlined the rest of his remarks, explaining that he would discuss the funds controlled by the Governor's office, the funds controlled by CDE, and finally, the Race to the Top Grant Program.

Dr. Gianneschi explained that Governor Ritter was very involved in working with the U.S. House of Representative and U.S. Senate as the stimulus bill went through Congress. He noted that the conference report was a combination of both bills, and stated that the Obama Administration is adamant about calling the stimulus a recovery and reinvestment package. He noted that the federal government is telling states that the package is about reform and stabilization. He noted the four specific principles of the stimulus as it pertains to education:

He specifically reviewed the components of student achievement:



03:42 PM

Representative Merrifield asked if there would be an opportunity to add programs under the student achievement piece of the requirements. Dr. Gianneschi explained that money could be used for things such as the teacher identifier program. Representative Merrifield asked about professional development for educators. Dr. Gianneschi noted that Colorado was one of four states that the National Governor's Association (NGA) gave funding for turnaround strategies, with Colorado being awarded $150,000.


03:46 PM

Dr. Gianneschi continued his remarks by discussing the magnitude of the SFSF, explaining that 82 percent is devoted exclusively to K-12 and Higher Education, which is known as the Education Block Grant. Representative Massey asked if any money goes directly to school districts. Dr. Gianneschi explained funding is supposed to flow through the state formula, as it existed prior to October 2008, and that the state is still trying to interpret how the funding distribution will work. Dr. Gianneschi explained that Colorado lobbied the U.S. Congress to have an addition to the U.S. House version of the stimulus that would hold the state harmless against its Amendment 23 funding requirements. Representative Merrifield asked how the State Education Fund (SEF) interacts with the stimulus package. Dr. Gianneschi replied that the state has asked for guidance from the federal government, but does not have the guidance yet. He noted that the money must be spent by fiscal year 2011.


03:51 PM

Dr. Gianneschi reviewed the flexible grant portion of the stimulus package, which is to be spent at the discretion of governors on what is called government services under the ARRA. He noted that the government services is not limited to education, and could not say at the time of the briefing what it would be spent on. Representative Merrifield presented concerns on how this interacts with the School Finance Act. Dr. Gianneschi explained that Governor Ritter is concerned about this as well. Representative Solano asked if the legislature will have any say in how the money will be spent. Dr. Gianneschi responded that the Governor will work with the legislature, but for right now, the Governor's Office is in the process of figuring out the actual amount of funding the state will receive. Representative Solano also asked about the state's full-day kindergarten capital construction program which is currently on hold, and whether stimulus money can fund that program. Dr. Gianneschi replied that the Education Block Grant may not be used for that purpose.


03:58 PM

Mr. Wenning discussed Title I and IDEA funding with the committee members. He reviewed some of the possible uses of the funds, including improving teacher training and extending school day and school year (for the full list of possible uses, see Attachment G, page 3 of the CDE recovery alert # 1). He explained that the allocations are required by the end of April, noting that 50 percent of the Title I and IDEA funds will become available now and the remaining 50 percent are available contingent upon a satisfactory and approved revised state plan. Representative Massey asked about sustainability of programs after the money, and how that will affect funding. Mr. Wenning explained that the federal department will need to provide guidance and the department will work with districts to ensure the programs are sustainable. Representative Todd asked if there will be competition between the districts to get the funding. Mr. Wenning explained that the funding is formulaic, and should not create a race for money, and that the broader concern is spending the money within the designated timeframes.


04:08 PM

Representative Massey asked if funding would be set aside for small rural districts. Mr. Wenning replied that the department is ready to assist districts in allocating the funding they receive. Representative Massey noted that small districts do not have business managers to work on funding allocation, and stressed the importance of department's proactive outreach to districts. Representative Murray asked about the Title I funding, how much it amounts to per pupil. Mr. Wenning replied that the district allocations are available on CDE website. Representative Murray asked if the Education Block Grant funding can be parsed out district by district. Dr. Gianneschi explained it is tough to give an estimate because the Education Block Grant is to be distributed through the state formula.


04:15 PM

Representative Summers asked how the stimulus money affects online schools. Mr. Wenning replied that allocations for Title I are at the district level, and if online schools receive Title I, they would be eligible for this money under the stimulus. Representative Schafer asked about the implications for accreditation and accountability. Mr. Wenning explained that Senate Bill 09-163 creates a new single accountability system that will provide information at state, district, and school level, and positions Colorado to influence the No Child Left Behind (NCLB) reauthorization.


04:18 PM

Dr. Gianneschi discussed the Race to the Top Grant Program, which are competitive grants for which states may apply, and that the four reform areas are basis of the competition in supplemental funding. He explained that some time this fall, roughly 8 - 12 states will be selected for these funds and will receive funding for fiscal year 2010, with $400 - $500 in competitive funds being awarded for the next fiscal year. He noted that Colorado is well positioned for this funding, and is moving aggressively to secure grants. He stated that the Lieutenant Governor is chairing the working group for preparing the grant application. Representative Merrifield asked if the grant money can be spent over a longer period of time. Dr. Gianneschi replied that it is unknown at this time.

04:23 PM

The committee adjourned.