Friday, March 13, 2009

Education Recovery Act Funds to Be Distributed to States Soon

According to the U.S. Department of Education Website (see press release here), $44 billion dollars in funding should be sent to states within the next few weeks. An additional $49 billion will be distributed in 6 months. In Tennessee, these funds will primarily go to Title I schools and for IDEA (special education) purposes. The recovery act funds can be used to restore cuts to K-12 education, but since Tennessee has worked hard to avoid cutting BEP funding, we are not in the same position as many other states.

Tennessee has made and proposed substantial cuts to higher education, so the portions of recovery act funding that may be used to restore cuts will go more towards higher education in our state. Many county officials and state legislators have been asking about recovery funds that can be used for K-12 construction. There original House of Representatives version of the recovery act included $14 billion for k-12 construction. Unfortunately, none of these funds were included in the Senate version or the final conference committee version that became law.

State officials have been cautioning local school systems and directors of schools that these funds must be used carefully as the funding will cease after two years. They are encouraged to use the funds for non-recurring expenditures or to help delay or soften budget cuts. If a local school district uses these funds to pay new or existing teaching positions, they will have to find funds from other sources to replace this recovery act funding after two years.

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