Pennsylvania Association Federal Program Coordinators

Pennsylvania Association Federal Program Coordinators
Stimulus Funds

Stimulus Funds/Education Jobs Bill/Race to the Top Funds

Last year, when Congress approved the ARRA Funds, commonly called stimulus funds, districts received extra quick fix funds that could be used generally for Title I purposes. The thought behind these one time stimulus funds was that these funds would improve the economy. Much direction and advice was given to school districts. Many districts used these funds to fund staff. In May 2010, American Association of School Administrators predicted that even with these additional stimulus funds, 82 percent of the School Districts would reduce staff.

The House of Representatives originally proposed 23 billion dollars in an education jobs bill to prevent school layoffs in our current downtrodden economy. Before the July 4th holiday the House reduced the 23 billion to 10 billion which would save approximately 140,000 educator jobs in the upcoming school year. This proposed bill cuts the Race to the Top Funds and Teacher Incentive Funds and places it in the Education Jobs bill. This reduction would decrease the available funds Secretary Duncan would be able to award to states. It is surmised Secretary Duncan was not joyful about this proposed reduction.

In a recent article in Education Week, Michelle Mc Neil points out that depending on which state you live-in the Education Jobs bill may or may not be good for your school districts. If a state has a chance to win a race to the Top Grant this year in Round 2, the Education Jobs bill may not be in its best interest. But those states that may not be funded or have not applied for funding for Race to the Top would certainly benefit from the Education Jobs bill. Race to the Top is competitive and not every state will get a piece of the action. Every state would get a piece of the action from The Education Jobs bill. Congressmen and Senators generally vote for bills that benefit their constituents. The future of this bill is not known. What is known is that this will not be the last time Congress looks at reducing the discretionary Race to the Top and other funds with which Secretary Duncan has had absolute power.