Stimulus

Posted: Fri, 02/17/2012 - 11:30am Updated: Thu, 03/28/2013 - 8:11am

About

Most of the money Indiana is receiving for K-12 education in the federal stimulus plan can be broken into three areas:

  • Title I (Poverty-based federal grants program): Approximately $168 million
  • IDEA (Special education federal grants program): Approximately $253 million for K-12 and approximately $9 million for Pre-K
  • State fiscal stabilization fund: Approximately $820 million of this fund is earmarked for K-12 Education and Higher Education

There are smaller categories for competitive grants and specialized programs.

There are two-types of money available for local school districts: Formula driven programs (such as Title I and IDEA) and competitive grants. We are anticipating information from the U.S. Department of Education (ED) to determine how much each corporation will receive through existing federal programs, and the amount available through a competitive grant procedure.

We are anticipating final notification on the timeline from ED. As we receive more information, we will make it available on our webpage as soon as possible.

In terms of projects and programs to be supported by state fiscal stabilization money, we are anticipating guidance from ED on the specific uses of the money. The Indiana Department of Education is coordinating efforts with the Governor’s office to develop a strategy. As we receive more information, we will make it available on this webpage as soon as possible.

A Few Things to Keep in Mind

  • This is one-time money. Funding should be used for items that do not add new ongoing expenditures.
  • Most states are using this money to replace K-12 shortfalls (33 states have cut or proposed to cut funding to K-12 education).
  • A large portion of the education money is tied to existing federal grants and programs. Those dollars will be distributed to local school corporations according the formulas set forth in those programs. The state will be required to track and report how those dollars are being spent.
  • The state is anticipating final guidance from ED. As information becomes available to us, we will work to update this webpage as quickly as possible.
  • Each recipient and subrecipient awarded federal funds made available under the American Reinvestment and Recovery Act (ARRA) must promptly refer to the ED's Office of Inspector General (OIG) any credible evidence that a principal officer, employee, agent, contractor, subrecipient, subcontractor, or other person has submitted a false claim under the False Claims Act or has committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving those funds. If you suspect waste, fraud or abuse of ARRA funds please contact the OIG at 1-800-MIS-USED (1-800-647-8733) or via email at oig.hotline@ed.gov. For more information about this topic, visit the OIG's webpage, http://www2.ed.gov/about/offices/list/oig/misused/index.html.

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