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American Recovery & Reinvestment Act of 2009 (ARRA)

State Fiscal Stabilization Funds (SFSF)

The State Fiscal Stabilization Fund (SFSF) program is a one-time appropriation of $53.6 billion under the American Recovery and Reinvestment Act of 2009 (ARRA). The funds are intended to advance essential education reforms to benefit students from early learning through post-secondary education. Virginia received its initial 67 percent SFSF Education Fund award in late May. The commonwealth’s $659.2 million initial award is allocated between school divisions and public higher education institutions based on budget restoration calculations. The 2009 General Assembly approved specific SFSF allocations for each school division for state fiscal year 2010. However, this funding may be utilized by divisions until the SFSF obligation deadline of September 30, 2011.

Application Process

• August 28, 2009 –
  • Letter from Governor Kaine to USED on proposed requirements for Race to the Top and SFSF-Phase 2 (PDF)
  • Virginia comments on proposed requirements for SFSF-Phase 2
• July 29, 2009 (USED) – USED solicits public comment on proposed SFSF-Phase 2 requirements, definitions and approval criteria specifying data and information grantees must collect and report on education reform assurances under the SFSF program. Submit comments to USED by August 26, 2009, using the Federal eRulemaking Portal or by postal mail.  See July 29 Information Alert for more information.
  
• July 10, 2009 (VDOE) – Local Education Agencies (LEAs) may begin the process of requesting SFSF funds for qualifying expenditures dating back to February 17, 2009.
  Each LEA seeking SFSF funds is required to submit an application to VDOE in accordance with U.S. Education Department General Administrative Regulations (EDGAR) at 34 C.F.R 76.301. The application must include assurances in section 442 of the General Educations Provisions Act (GEPA)(20 U.S.C. 1232e) as well as other assurances specific to ARRA.
  • Instructions for completing the SFSF application (PDF)
  • Phase I Application (XLS) – To download this file, please follow these steps: (1) place your mouse cursor over the file link; (2) press your right mouse button to see the drop-down list of action selections; (3) select "Save Target As…", (4) from the "Save as..." dialogue box and you can save the file to any location on your hard drive, network, or external drives.

Funding & Reporting

Allocations

• Allocations – State FY10 allocations by school division (XLS)
• Awards – Local Education Agency (LEA) award notifications (PDF) – updated October 22, 2009

Reimbursement

Reimbursement requests are processed through Online Management of Education Grant Awards (OMEGA), VDOE’s automated grant application and reimbursement system. OMEGA can be accessed through Single Sign-On for Web Systems (SSWS), VDOE’s secure portal for Web applications.

To expedite reimbursement requests, local school divisions should ensure that VDOE has received a completed OMEGA User Permission Form OP1 (XLS) for personnel authorized to approve the requests. The completed user setup forms should be mailed to the following address:

Virginia Department of Education
Attn: Grant Accounting and Reporting Department
P.O. Box 2120
Richmond, VA 23218-2120

VDOE can only process requests that include evidence of sign off by at least one Level 3 Approver using OMEGA’s “Approval Queue” feature. Submissions with only the transaction originator’s approval cannot be processed.

Additional information on OMEGA, including instructions for establishing a school division’s approval queue is available in the OMEGA User's Guide (PDF)

Federal Resources & Guidance

• OMB Circular A-87-Cost Principles for State, Local, and Indian Tribal Governments
• OMB Circular A-133 - Compliance Supplement
• Search of United States Code (U.S.C.)
• National Archives and Records Administration - Code of Federal Regulations (CFR)
• U.S. Education Department General Administrative Regulations (EDGAR) (PDF)
• Catalog of Federal Domestic Assistance (CFDA)
• Federal Funding Accountability and Transparency Act (FFATA) Information Center
  

Uses of State Fiscal Stabilization Funds

• July 30, 2009 (Office of the Governor) – Governor Timothy M. Kaine directs by Executive Order 85 (PDF) employers to post recruitment notices for positions fully or partially funded by ARRA on the Virginia Workforce Connection.
• May 11, 2009 (USED) – Modifications to Questions in the Guidance on the State Fiscal Stabilization Fund Program (Word) or (PDF). While use of SFSF for new school construction is allowed, revised guidance as outlined in "Illustration 8," strongly discourages it.
• April 24, 2009 (VDOE) – REVISED ARRA Use of Funds Summary (PDF). This document replaces the summary issued March 27.
• April 24, 2009 (USED) – Using ARRA Funds to Drive School Reform and Improvement (Word)

Funds may be used for the following purposes and are subject to rigorous reporting requirements.

• To pay salaries to avoid having to lay off teachers and other school employees
• For modernization, renovation or repair of school facilities
• To improve facilities to support early childhood education, the community, and “green” buildings
• For any activity authorized under the:
  • Elementary and Secondary Education Act (ESEA)
  • The Individuals with Disabilities Education Act (IDEA)
  • The Adult Education and Family Literacy Act
  • The Carl D. Perkins Career and Technical Education Act

Guidance Documents

• April 3, 2009 (USED) – Guidance on the State Fiscal Stabilization Fund Program (PDF) - comprehensive information and interpretation of various statutory provisions in a question and answer format.
• April 1, 2009 (USED) – “Buy American” – Section 1605 (Use of American Iron, Steel and Manufactured Goods) (PDF) referenced from the Guidance on the State Fiscal Stabilization Fund Program posted on April 1, 2009, by the USED. If a local school division uses education stabilization funds for modernization, renovation or repair of public school facilities or for construction of new school facilities, the division must comply with specific requirements relating to the use of American iron, steel and manufactured goods used in the project.
• April 1, 2009 (USED) – Davis-Bacon and related acts: wage requirements associated with the use of ARRA funds (PDF).
• March 6, 2009 (USED) – State Fiscal Stabilization Fund (PDF).
  This document provides states and LEAs with basic information regarding how and when State Fiscal Stabilization Funds will be awarded by the U.S. Department of Education.
• March 4 (USED) – Guidance on School Modernization Projects.
  USED has posted new information on its Web site containing guidance as to how schools can use SFSF for school modernization projects.