How will districts receive State Fiscal Stabilization (SFS) funding and how can those funds be used?
A.There are two categories of stabilization funds: • Education Stabilization ($40 billion) The purpose of this funding is to restore state education funding for K-12 education and for public universities. Funding will be distributed based on state’s existing school funding formula. Districts will have to submit applications to receive this funding, committing to follow all the rules and be held accountable. If there’s any money leftover, it will be distributed to districts based on their Title I allocation. Use of funds: It will be a district-by-district decision of how these funds will be used. The guidance says stabilization funds can purchase anything allowable under four federal education acts. The main one to note is the Elementary and Secondary Education Act, which includes Impact Aid. Since Impact Aid is used by school districts as general funds, it throws the door wide open to purchase almost anything, including construction. • Government Services funds ($8.8 billion) This mone
Related Questions
- Are the State Fiscal Stabilization funds used for the Deficit Reduction Assessment Restoration subject to ARRA restrictions?
- Are the funding estimates in the stimulus law for one or two years for state fiscal stabilization funds?
- Are there prohibitions against certain uses of State Fiscal Stabilization Funds for Education?
