Obama’s Stimulus Plan: $100 Billion Education Dollars
By Donna Gundle-Krieg February 20, 2009
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100 billion dollars will be spent to save education jobs, send young people to college, modernize America's classrooms, and advance education reforms, according to the U.S. Department of Education.
This money is part of the American Recovery and Reinvestment Act of 2009, more commonly known as “the Stimulus Plan.” It was signed into law by President Obama on February 17.
Many of the effects on education will be immediate, according to U.S. Education Secretary Arne Duncan. The goal is to get half of the money to the states within 40 days, and the second half within six months, conditioned upon receipt of a comprehensive reform plan.
"The single best way to stimulate the economy—short-term and long-term—is to keep teachers teaching and keep kids learning," Duncan said after meeting with students and teachers of Explore Charter School.
Many states have already announced that they will now be able to avert budget cuts scheduled for the schools this year. In fact, federal stimulus rules prevent states from slashing funds for colleges and public schools.
This all sounds great, as does everything coming from Obama. He has a silver tongue and pen, is sincere, and has a beautiful family. I really want to believe in him.
However, I have many questions and concerns about the Stimulus Plan, and have to question spending more money on schools in this economy.
My main concern is that this is my money and my children’s money. So much taxpayer money is already spent on the public schools, and it is often wasted on corruption, misplaced priorities and political divisions.
Second, if this money is going to be sent to districts in two payments, what happens next to keep these programs going? Stimulus Plan II and more billions of dollars?
I will remain positive for the sake of change and unity because I do believe in unity! In addition, I do have hopes that with this money will come the demand for necessary reform.
I also am encouraged that Obama is supportive of charter schools and other options for parents. The day that they start bothering people in the successful home school movement is the day that I switch over to being negative. For now, I have hope mixed with concern.
Perhaps I am conflicted because Obama seems a bit conflicted, too. It is obvious that he values education. However, his own daughters do not attend public schools, and neither do my children.
See below for details of the plan and White House press releases.
See also: “President Obama's Education Agenda Posted on White House Website” and “President Obama’s Letter to his Daughters Emphasizes Education.”
State-by-state numbers are available on-line at http://www.ed.gov/about/overview/budget/statetables/recovery.html.
Duncan Hails Passage of President's Stimulus Package, Cites "Historic Opportunity to Create Jobs and Advance Reform"
as posted on the Department of Education website February 18, 2009
Education Secretary Arne Duncan today called the American Recovery and Reinvestment Act of 2009 (ARRA) a "historic opportunity to create jobs and advance education reform." He credited the "leadership of the President and the Congress in laying groundwork for a generation of education reform and economic opportunity."
Duncan emphasized the urgency of distributing the funds to states on an aggressive timetable in order to avert layoffs. Citing a University of Washington study showing almost 600,000 education jobs at risk of state budget cuts, Duncan said that his office will publish timelines and initial guidance within a week so that states and districts can lan accordingly.
The ARRA provides more than $100 billion in education funding and college grants and tuition tax credits, as well as billions more for school modernization. It includes:
$40 billion in state stabilization funds to help avert
education cuts. Funds will be given to states in exchange for a commitment
to begin advancing education reforms. School systems have discretion to use
some of this money for school modernization.
$13 billion for Title I, including $3 billion for Title I
school improvement programs.
$12 billion for Individuals with Disabilities Education Act
(IDEA) programs.
$5 billion in incentive grants to be distributed on a
competitive basis to states that most aggressively pursue higher standards,
quality assessments, robust data systems and teacher quality initiatives.
This includes $650 million to fund school systems and non-profits with
strong track records of improving student achievement.
$5 billion for Early Childhood, including Head Start, early
Head Start, child care block grants, and programs for infants with
disabilities. (Includes Department of Health and Human Services programs).
$2 billion for other education investments, including pay for
performance, data systems, teacher quality investments, technology grants,
vocational rehab, work study, and Impact Aid.
College Affordability — $30.8 Billion:
$17 billion to close the shortfall in the Pell Grant program
and boost grant amounts by $500 to $5350 in the first year and more in the
second year, serving an estimated 7 million low and moderate-income young
people and adults.
$13.8 billion to boost the tuition tax credit from $1800 to
$2500 for families earning up to $180,000.
Additional School Modernization — (up to) $33.6 Billion:
An additional $8.8 billion in state stabilization funds are
available for other state services including education. School modernization
is an eligible use of this funding.
Authority for states and school systems to issue $24.8 billion
dollars in bonds over the next 10 years for renovation, repairs and school
construction that will be retired through a combination of local, state and
federal dollars.
"These investments are the surest way to provide long-term stability in to our economy," Duncan said. "With these funds, we will educate our way to a stronger economy."
$13.8 billion to boost the tuition tax credit from $1800 to
$2500 for families earning up to $180,000.
Additional School Modernization — (up to) $33.6 Billion:
An additional $8.8 billion in state stabilization funds are
available for other state services including education. Modernization is an
eligible use of this funding.
Finally, the Act provides for states and school systems to
issue $24.8 billion dollars in bonds for renovation, repairs and school
construction that will be retired through a combination of local, state and
federal dollars.
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U.S. Education Secretary Announces State-by-State Dollars in New York
as posted on the Department of Education website
The U.S. Department of Education posted on-line state-by-state estimates of new education revenues included in the American Recovery and Reinvestment Act. U.S. Education Secretary Arne Duncan vowed to release a significant share of the $100 billion in funding in time to avert teacher layoffs.
Duncan made the announcement at a Brooklyn charter school where he was joined by New York City Mayor Michael Bloomberg, New York City Schools Chancellor Joel Klein and American Federation of Teachers President Randi Weingarten.
"The single best way to stimulate the economy—short-term and long-term—is to keep teachers teaching and keep kids learning," Duncan said after meeting with students and teachers of Explore Charter School.
"States are hurting, and schools across America are facing catastrophic cuts. We need to invest this money quickly, thoughtfully and transparently to protect kids, create jobs and drive reforms," Duncan said. He added that the money—a two-year, one-time boost—will be released as quickly as possible to insure that states can help districts minimize layoffs.
New York City anticipated as many as 14,000 teacher layoffs next year, but city officials recently said that the stimulus money, with effective cooperation from New York State, could avert "most" of those cuts and keep those teachers in the classroom.
Mayor Bloomberg thanked President Obama and Secretary Duncan saying, "The State's fiscal problems have threatened to drastically reduce State aid to City schools, forcing us to confront the possibility of deep cuts and substantial layoffs. Fortunately, President Obama and his administration worked with Congress to include much-needed education funding in the economic stimulus bill, which will help save jobs—and help our students continue acquiring the skills they need to lead the 21st century economy. The federal education aid will not be a cure all for our budget problems, but it's an important shot in the arm. I want to thank President Obama and Secretary Duncan for their leadership in delivering this important infusion of funds."
Duncan praised Mayor Bloomberg, Chancellor Klein and President Weingarten for the city's aggressive education reform efforts saying, "Districts like New York are remaking public education in America with bold and innovative new learning models, higher standards and teacher quality initiatives. We must support those efforts. We can't go backwards."
Duncan further saluted AFT President Weingarten for her leadership and support of the administration, calling her, "A critical partner in advancing President Obama's education agenda."
State-by-state numbers are available on-line at http://www.ed.gov/about/overview/budget/statetables/recovery.html.District-by-district numbers for IDEA funding also are available.
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