Maine ARRA Education Funds on the Way

June 23, 2009 -- AUGUSTA – The Maine Department of Education is issuing almost $24 million of federal Recovery Act funds to school systems this week and next – the first of three waves of State Fiscal Stabilization Funds included in the American Recovery and Reinvestment Act that will be sent to school districts. The funds replenish the curtailment in State funds that went into effect in January as a result of the global recession and a significant drop in State revenues.

Stabilization funds are the most flexible of the Recovery Act funds for education and can be used for a broad array of educational purposes, including adult and family literacy, vocational education and modernization. Federal guidance urges that funds be used for one-time purposes such as energy or security improvements, as well as to purchase laptops for high school students and one-time professional development or educational planning grants.

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“With this first payment to schools, in partnership with the federal government, we are helping relieve the fiscal burden for school districts at a challenging time,” said Governor John E. Baldacci. “These funds, and the funds that will come in the second and third years of the program, provide tax relief, save jobs, inject funds into our economy and will support effective reforms and innovation in education.”

Districts will receive another $43 million in federal Stabilization funds for 2009-2010, and $59 million for the 2010-2011 school year. The funds were intended to fill gaps created by loss of state revenue.

Districts have already received increases in federal Title I funds, for educating low-income students, and IDEA, used for special education funding.

Education Commissioner Sue Gendron said superintendents and school boards have taken a wise approach to using the funds.

“When a district invests in a new boiler or energy efficiency improvements, they are generating savings in future years,” Commissioner Gendron said. “And when they invest in professional development, training, laptops, and educational planning, they are making wise limited-duration decisions that will pay educational dividends for years to come.”

Commissioner Gendron said both kinds of investments are necessary to the educational and financial sustainability of schools.

The funds come with stringent federal reporting requirements aimed at ensuring effective use and transparency.

Not all districts will receive checks this week. Sixteen districts saw no curtailment in funds during the current year and so will not receive checks to replenish funds. Another 55 school systems have not filed the necessary State or federal paperwork that is required. This may include missing audits or federal reporting forms. These 55 districts are due to receive just under $3 million in funds.

The Department is working with these school systems to bring their paperwork into State and federal compliance so they can receive the funds as soon as possible.

Source: Maine Dept. of Education