Recent Activity on Education Jobs Bill

Below are documents from the U.S. Dept. of Education, BTA’s flyer on our position, BUSD Superintendent Stan Carrizosa, California Teachers Association, National Education Association,  and School Services

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U. S. Dept. of Education:

Please see the following website:

http://www.ed.gov/news/press-releases/congress-passes-bill-provide-10-billion-support-160000-education-jobs-nationwide

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To:                  BTA Members                                                 Date:  September 3, 2010

The District Needs to Restore

Instructional and Staff Development Days

On August 10, 2010, by vote of 247-161, the U.S. House of Representatives joined the Senate in passing H.R. 1586, creating an Education Jobs Fund, to provide $10 billion to support an estimated 160,000 education jobs nationwide. President Obama immediately signed the bill into law.

The funding is designed to save jobs in California schools by retaining, recalling, or rehiring former employees and to hire new employees to provide early childhood, elementary, or secondary educational services. Districts that shortened their school year can also use the funds to add back days to the school year calendar. These funds may not be used for general administrative expenses.

Earlier this week the California State Senate passed SB 847 that will result in the allocation of $1.2 billion from the federal Education Jobs Fund. As a result Burbank is scheduled to get a total allocation of $2,866,165 with 90% of this total – $2,579,549 – due to the District in about a month.

According to today’s Burbank Leader article, “Educators were more cautious in Burbank. District administrators made no promises and took no actions when President Obama signed the Education Jobs and Medicare Assistance Act into law”.

Burbank Teachers Association President Jerry Mullady, in this same article, said the District should use the stimulus money to restore instructional and staff development days that were lost in concessions last spring.

“We feel we did the right thing at the time,” he said. “We did the courageous thing to make a step forward so the District would not cut programs.”

Now the District needs to do the right thing – restore the instructional and staff development days.

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BUSDeNEWS 8.18.10

FEDERAL JOBS BILL PASSES:  WHAT CAN WE EXPECT?

Public law No. 111-226 has been enacted to provide support specifically for public education across the country. Also known as the “Education Jobs Bill,” this recently approved legislation will be administered by the US Department of Education and through each state’s respected legislature. Governor Schwarzenegger has moved quickly to process California’s application for our share of the funds. The simple facts as we know them now are as follows:

  1. California stands to qualify for $1.2 billion.
  2. California’s application agrees to meet the “maintenance of effort” (MOE) required to be eligible for the funding.
  3. This means the state has committed to provide a source of “ongoing” state revenue to sustain this support even without a state-adopted budget.
  4. The formula presented allocates between $140 and $180 per student to California School Districts.
  5. These funds are restricted for one of three purposes. 1) they can be used to fund current employee salary and benefits. 2) they can be used to rehire employees previously laid off. 3) they can be used to restore furlough days.
  6. The BUSD Board and administration are carefully monitoring the progress of this law and any funds that may materialize as a result.
  7. No funds have been received yet by either the state of California or local school districts.

We are cautiously optimistic about the developments of the law thus far. We will continue to monitor the progress of implementation and particularly how the California Legislature treats this type of new federal revenue in relationship to the entire state budget adoption process.  In other words, we are still nervous about the old adage, “…they giveth with one hand and taketh away with the other.” More to follow…

Stan A. Carrizosa

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NEWS RELEASE

California Teachers Association August 10, 2010

1705 Murchison Drive
Burlingame, CA 94011-0921

www.cta.org

Contacts: Sandra Jackson, (916) 325-1550

FOR IMMEDIATE RELEASE

CTA President Applauds U.S. House for

Passing Critical Education Jobs Bill

Economic recovery legislation could save up to 16,500 educator jobs in California just as students return to school

BURLINGAME—CTA President David A. Sanchez issued the following statement about the U.S. House of Representatives’ passage of the Education Jobs Bill today:

“Educators across California and throughout this country are applauding the U.S. House of Representatives today for passing the Education Jobs Bill.  This critical piece of legislation that didn’t look like it was going to survive just weeks ago, would help return up to 16,500 educators—including teachers, counselors, librarians, nurses and classified employees—who have been laid off back to our classrooms and schools.  It means class sizes could be reduced so students receive more individualized attention.

“The House joined the Senate in passing H.R. 1586, the Education Jobs and Medicaid Assistance Act, which will bring $1.2 billion to California to help save educator jobs and give our students a better education. These funds are a lifeline for our students and schools who have been cut over $17 billion in the last two years.

“Now that President Obama has signed this bill into law, money can flow to the states right away. We are calling on Governor Schwarzenegger to do as the legislation requires and move this money out to California school districts immediately. Our students deserve to begin school with a teacher in every classroom.”

For additional information on the Education Jobs Fund figures for California, go to

http://www.cta.org/~/media/CB7A265EF23C43BEB1DDE0F9366B15BC.ashx

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The 325,000-member CTA is affiliated with the 3.2 million-member National Education Association.

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NATIONAL EDUCATION ASSOCIATION

Education Jobs Fund FAQs

Updated August 12, 2010 (PM edition)

Please direct all questions on implementation of the Education Jobs Fund to

[javascript protected email address]

How soon will the U.S. Department of Education release an application?

The U.S. Department of Education intends to send an application package to each State and release its initial guidance online at www.ed.gov by 10 a.m. on Friday, August 13, 2010 (although delays are possible).

How will funds under the Education Jobs Fund be allocated to States?

The $10 billion Education Jobs Fund will be administered by the U.S. Department of Education under the terms and conditions of the State Fiscal Stabilization Fund (SFSF), Title XIV of Division A of the American Recovery and Reinvestment Act of 2009 with exceptions as noted here.

The U.S. Secretary of Education is required to allocate the funds as follows:

(1) one-half of one percent, or $50 million, to the outlying areas; (2) $1 million for administration; (3) one-half of one percent, or $50 million, to the U.S. Secretary of the Interior

for schools operated or funded by the Bureau of Indian Affairs; and (4) the remaining amount, $9.899 billion, to the States (defined as the

Governor) as was done under the SFSF – 61 percent on the basis of their relative population of individuals aged 5 through 24; and 39 percent on the basis of their relative total population.

Each State may reserve up to two percent of its allocation for administrative costs

for the purposes of administering the Education Jobs Fund only.

Any funds that a Governor does not award as subgrants or otherwise commit within one year of receiving the funds shall be returned to the U.S. Secretary of Education to be reallocated to other States.Education Jobs Fund FAQs NEA Education Policy and Practice

Preliminary estimates by state are available from the U.S. Department of Education at http:/ / www.ed.gov/ sites/ default/ files/ edjobsfund- allocations.pdf.

How soon will the money be available?

The U.S. Secretary of Education must award funds to States no later than 45 days after the date of enactment to States that have submitted applications meeting the requirements set in the law. The Education Jobs Fund was signed into law on August 10, 2010, which gives the Department until September 24, 2010 (tentative date).

The U.S. Secretary of Education cannot “require information in applications beyond what is necessary to determine compliance with applicable provisions of law.”

The Department anticipates enabling a State to draw down its funds within about two weeks of receiving an approvable application.

What happens if the Governor does not apply for the funds?

If, within 30 days after the date of enactment, or by no later than September 9, 2010, a Governor has not submitted an approvable application, the U.S. Secretary of Education shall provide for funds allocated to that State to be distributed to another entity or other entities in the State under terms and conditions set by the Secretary. Regardless of the entity or entities selected, no distribution shall be made to the State unless the Secretary determines that the State meets the law’s maintenance-of-effort requirements.

How will the funds be distributed locally?

After setting aside up to two percent for administrative costs, a State must allocate the remaining funds to local educational agencies for the support of elementary and secondary education in order to retain or create education jobs for the 2010-11 school year (or for funds received through state reallocations, for the 2010-11 or the 2011-12 school year).

Funds shall be distributed through either the State’s primary elementary and secondary funding formulae or based on local educational agencies’ relative shares of funds under Title I, Part A of the Elementary and Secondary Education Act (ESEA) for the most recent fiscal year for which data are available.

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Education Jobs Fund FAQs NEA Education Policy and Practice

Which local distribution formula should my State choose?

As soon as possible, you should request allocations by school district under both formulas – the State’s primary elementary and secondary funding formulae and the ESEA Title I, Part A federal formula – from your State education agency to determine which formula is most favorable to retaining and creating the most education jobs.

As an interim step, you can calculate a “rough” estimate by school district for each formula as follows. For the State’s primary education funding formulae, you will need to obtain the allocations by school district made under SFSF – Education Grants, preferably in a spreadsheet format, from the State education agency. For each individual school district, calculate the district’s share of funding as a percentage of the total under the SFSF – Education Grants; and apply that percentage to the State’s allocation under the Education Jobs Fund (a link to preliminary state estimates is available above), less two percent withheld by the State for administrative costs. This will give you a rough estimate only.

Similarly, calculate each district’s share of funding as a percentage of the total under the federal Title I, Part A formula (available from the U.S. Department of Education in an Excel spreadsheet for each state at http:/ / www2.ed.gov/ about/ overview/ budget/ titlei/ fy10/ index.html); and apply the percentage to the State’s allocation under the Education Jobs Fund. Again, this will provide you with an approximation only. (Note that the amounts by school district provided by the U.S. Department of Education are “gross” amounts and do not reflect subsequent adjustments made by the State.)

The Governor will indicate which funding formula the State will use on the application to be subm itted to the Departm ent.

What are allowable uses of the funds?

Funds awarded to local educational agencies may be used only for compensation and benefits and other expenses, such as support services, necessary to retain existing employees, to recall or rehire former employees, and to hire new employees, in order to provide early childhood, elementary, or secondary educational and related services.

The U.S. Department of Education has also confirmed that funds can be used to restore furloughs and pay cuts negotiated to avoid layoffs.

The Governor or any other State official cannot add any additional requirements on how districts can use the funds beyond what is contained in the law.

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Are the funds limited to teachers only?

No. Funds may be used for compensation and benefits and other expenses for education support professionals as well.

Are there any prohibitions on using the funds?

Yes. Funds may not be used for general administrative expenses or for other support services expenditures (as those terms were defined by the National Center for Education Statistics in its Common Core of Data as of the date of enactment of the Education Jobs Fund). For example, funds may not be used for equipment, utilities, renovation, or transportation.

In addition, a State may not use funds, directly or indirectly, to

(a) establish, restore, or supplement a rainy-day fund; (b) supplant State funds in a manner that has the effect of establishing,

restoring, or supplementing a rainy-day fund; (c) reduce or retire debt obligations incurred by the State; or (d) supplant State funds in a manner that has the effect of reducing or retiring

debt obligations incurred by the State.

What are the maintenance-of-effort requirements?

In order to receive an Education Jobs Fund grant, each State must provide assurance that State support for both elementary and secondary education and for public institutions of higher education (not including support for capital projects or for research and development or tuition and fees paid by students), measured separately, in fiscal year 2011 will be at or above either: (1) the fiscal year 2009 level (in the aggregate or on the basis of expenditures per pupil); or (2) the percentage share of total revenues available to the State as in fiscal year 2010, or; (3) in the case of a State in which State tax collections for calendar year 2009 were less than State tax collections for calendar year 2006, the fiscal year 2006 level or the percentage share of total revenues available to the State as in fiscal year 2006.

There are no waiver provisions included in the law.

When do the funds have to be obligated?

The U.S. Department of Education will have to provide specific guidance on this issue, but a preliminary indication from the Department is that section 421 of the

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Education Jobs Fund FAQs NEA Education Policy and Practice

Education Jobs Fund FAQs NEA Education Policy and Practice

General Education Provisions Act applies, which automatically allows a State to carryover for one additional year any federal education funds that were not obligated during the period for which they were appropriated. If this is applicable, then States, and presumably local educational agencies, would have until September 30, 2012 to obligate their funds.

What other assurances are required?

Any state that has an approved application under phase II of the SFSF is deemed in compliance with the “education reform” assurances (achieving equity in teacher distribution, improving collection and use of data, improving standards and enhancing assessments, and supporting struggling schools) contained in the American Recovery and Reinvestment Act. As of August 11, 2010, the only states that have not been approved under phase II are CA, HI, NY, OK, and PR.

Section 442 of the General Education Provisions Act shall not apply to a local educational agency that has previously submitted an application to the State for funding under the SFSF. The assurances provided under that application shall continue to apply to funds awarded under the Education Jobs Fund.

Are there special requirements for the State of Texas only?

Yes. Funds used to support elementary and secondary education shall be distributed based on local educational agencies’ relative shares of funds under ESEA Title I, Part A for the most recent fiscal year which data is available; and must be used to supplement and not supplant State formula funding that is distributed on a similar basis to ESEA Title I, Part A.

The Governor of Texas must provide an assurance that the State will for fiscal years 2011, 2012, and 2013 maintain State support for elementary and secondary education at a percentage of the total revenues available to the State that is equal to or greater than the percentage provided for fiscal year 2011 prior to enactment of the Education Jobs Fund.

The U.S. Secretary of Education shall not distribute funds to another State entity in the absence of an application from the Governor of Texas unless the Governor assures that the State will meet the two requirements above.

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Copyright © 2010 School Services of California, Inc.
Volume 30                       For Publication Date: August 13, 2010                           No. 16

Federal Funding to the Rescue?—Education Jobs Fund Update

On August 5, 2010 the United States Senate approved House Bill (H.R.) 1586 as amended by Senate Amendment (S.A.) 4575, that would provide $10 billion nationally for K-12 education jobs and $16 billion for Medicaid. The bill now moves on to the House for consideration, which may take a vote as early as next Tuesday.

Should the bill pass as amended, it appears the funding would be provided to states to pass along to K-12 education in a manner similar to American Recovery and Reinvestment Act (ARRA) State Fiscal Stabilization Funding (SFSF). However, unlike the SFSF funding, which could be used to support virtually all aspects of general school operations, this funding would be limited for use as follows:

[The funds] may be used only for compensation and benefits and other expenses, such as support services, necessary to retain existing employees, to recall or rehire former employees, and to hire new employees, in order to provide early childhood, elementary, or secondary educational and related services; and may not be used for general administrative expenses . . .

In other words, the funding could be used to pay for existing employees, rehire, laid-off staff, and/or eliminate furlough days.

The bill also carried forward a maintenance-of-effort (MOE) requirement that states must meet in order to receive the funding. Some may recall that the MOE requirement under SFSF limited the amount that the state could cut from K-12 and higher education funding or risk losing out on receiving SFSF. The new funding would require that states maintain at least the same level (in total dollars or dollars per student) of financial support for K-12 and higher education made in 2009-10 and the same percentage of state revenues to such purposes in 2010-11. There is some flexibility afforded to states whose tax collections for calendar year 2009 were less than their tax collection for calendar year 2006 to meet the MOE requirement, by showing that they will maintain at least the same level of K-12 and higher education funding as they provided for fiscal year 2006-07 or an equivalent percentage as provided for K-12 and higher education for fiscal year 2006-07.

California’s ability to meet the MOE requirements will rest on two factors, the level of funding provided by the state in 2010-11 and the level of state revenues that are projected. At this point, it appears that if the state moves forward with the May Revision proposed level of cuts, it may be at risk of failing to meet the MOE requirements under the bill’s provisions.

According to the National Education Association, the bill could save 145,000 jobs nationally. California’s share of the funding would be around $1 billion, which would not fully address the significant cuts taken to date, but would certainly be welcomed. On a per-ADA basis, $1 billion would provide perhaps $140 to$180 per ADA, but the distribution could be very uneven based on the SFSF formula or some other methodology that might ultimately be adopted.

It is anticipated that the House will pass the bill and the President will sign it. According to the bill, the Secretary of Education must issue funds within 45 days of the bill’s enactment to states that have submitted applications that meet legal requirements. Given that the school year will begin shortly, and in some cases has already started, this funding will not come in time for the state’s schools. We’d also caution that while it seems likely that the bill will pass into law, it is still possible that amendments would be made, which could change its provisions. But the biggest outstanding issue is whether or not California can meet the MOE requirements and how California can demonstrate this without a State Budget in place. This may provide yet one more motivator for the state Legislature and the Governor to enact a Budget. In short, it’s too early to count on this funding, but it’s certainly worth thinking about how things could change should it come our way.

—Jannelle Kubinec and Deborah Harmon

posted 08/06/2010

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