May 29, 2009
Update on ARRA State Fiscal Stabilization Funds Awarded to Virginia
ARRA INFORMATION FROM STATE SUPERINTENDENT PATRICIA I. WRIGHT
This week, Virginia received from the U.S. Department of Education (USED) its initial 67 percent award of the State Fiscal Stabilization Fund (SFSF) - Education Fund grant authorized under the American Recovery and Reinvestment Act of 2009 (ARRA). The amount of the initial SFSF Education Fund award to Virginia is $659.2 million, and is allocated between Virginia school divisions and Virginia public higher education institutions based on the budget restoration calculations for K-12 and higher education required in the SFSF state application. Receipt of the final 33 percent of the SFSF Education Fund grant requires another state application to be filed with USED later this summer; this application will focus on the use of the SFSF funds towards meeting the education reform goals of the ARRA.
The K-12 portion of the initial SFSF education grant funding will be available for LEA reimbursements beginning July 1, 2009, for eligible program expenditures incurred on or after February 17, 2009. LEA SFSF reimbursements will be processed through the VDOE OMEGA system.
The total (100 percent) K-12 allocation of SFSF education funds to school divisions based on the approved SFSF application is $658.1 million. This funding will be provided through the state budget in state FY10 and FY11. The FY10 SFSF allocation previously communicated to you based on the appropriation by the 2009 General Assembly remains the same with no change. $292.9 million of SFSF education funding to school divisions will be appropriated in the FY11 budget at the 2010 General Assembly session. All SFSF funding must be obligated by LEAs by September 30, 2011.
School divisions must file a LEA application with VDOE to receive the initial 67 percent of SFSF funds. The LEA application is forthcoming via superintendent's memorandum. The initial application will focus on meeting program assurances and reporting requirements and will be as brief as possible. The final 33 percent of SFSF education funding will be available in October 2009 and will require another LEA application.
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