Hurry Up and Wait — About three months later, only $29 billion of a total $787 billion in ARRA (i.e., stimulus) funding has been spent, though more has been obligated. “Of the $20 billion approved for spending so far for the Education Department, for instance, 97.2 percent remains unspent,” never mind the other $75 or so billion not yet allocated.
But Don’t Wait Too Long — As of May 15, only a “lucky” 13 states have had their State Fiscal Stabilization Fund (SFSF) applications approved. Some 95% of these funds are being spent by states to back-fill their budget shortfalls in the current and next school years, although states technically can use those funds to fill gaps in the 2010-2011 school year. The K12-PostSec breakdown is 80%-20% based on an initial 9 state sample.
EETT Triple-Speak – After earlier announcements that funds would be 50% delayed, then 100% delayed, we now know that ARRA Enhancing Education Through Technology (EETT) funds will be allocated to states 100% by July 1, 2009 as advocated by SIIA, SETDA and others. States have the option of allocating 100% of EETT funds ($650 ARRA + $270 FY09 = $930 million total) for competitive grants, but it appears the large majority will allocated 50% by formula.
Recovery vs. Reinvestment – An SIIA analysis finds that, of the13 states with approved SFSF applications, about half (CA, FL, GA, IL, NV, OR and UT) used all their SFSF funds for their primary purpose — back-filling their K12 and postsecondary budget shortfalls — i.e., Recovery. The remainder – ME, MN, MS, NY, SD and WI – have a combined total of only $550 million (led by MS and WI) to allocate via Title I (i.e., Reinvestment) as called for under the law. If one assumes Recovery funds will be spent on the same expenditures to be cut (including salaries), then it appears there will be few SFSF funds “left-over” for reinvestment in new, supplemental and innovative initiatives. Of course, the reality remains to be seen, and will vary by locality and educational area . . . and by state, with accusations that some states are cutting budgets just as fast as ARRA funds are allocated.
For more SIIA analysis of the federal education stimulus, don’t forget to review SIIA’s February ARRA Primer webinar, April Stimulus Update, or Ed Tech Government Forum session summaries.