State Fiscal Stabilization Fund (SFSF) - Government Services, Recovery Act

To support public safety and other government services, which may include assistance for elementary, secondary education and public institutions of higher education (IHEs), and for modernization, renovation or repair of public school facilities and IHE facilities.



Agency - Department of Education

The Department of Education ensures equal access to education and promotes educational excellence through coordination, management and accountability in Federal education programs. The Department works to supplement and complement educational efforts on all levels, encouraging increased involvement by the public, parents and students.




Program Accomplishments

Not Applicable.

Uses and Use Restrictions

States must use 18.2 percent of the State Fiscal Stabilization funds for education, public safety, and other government services, which may include assistance for elementary and secondary education and public IHEs, and for modernization, renovation, or repair of public school facilities and IHE facilities.

States must first use this grant to provide any funds needed: (a) to restore State elementary and secondary education support for fiscal years 2009, 2010, and 2011 to the greater of the fiscal year 2008 or 2009 level; (b) to allow existing State formulae increases to support elementary and secondary education for fiscal years 2010 and 2011 to be implemented and allow funding for phasing in State equity and adequacy adjustments, if such increases were enacted prior to October 1, 2008; and (c) to restore support for public institutions of higher education (IHEs) for fiscal years 2009, 2010, and 2011 to the greater of fiscal year 2008 or 2009, excluding tuition and fees.

If there is insufficient funding to carryout this first activity for each fiscal year, the Governor must allocate funds in proportion to the relative shortfall in State support for each education sector.

States must use any remaining funds to provide local education agencies (LEAs) with subgrants based on the LEA s funding under Title I, Part A of the Elementary and Secondary Education Act of 1965 (ESEA).



LEAs that receive funds may use funds for activities authorized under the ESEA, the Individuals with Disabilities Act (IDEA), the Adult and Family Literacy Act, or the Carl D.

Perkins Career and Technical Education Act of 2006 (Perkins) and for school modernization, renovation, and repair of public school facilities (including charter schools), which may include modernization, renovation, and repairs consistent with a recognized green building rating system.

School district modernization activities must be consistent with State laws.

Public IHEs receiving funds must use these funds for educational and general expenditures, and in such a way as to mitigate the need to raise tuition and fees, or for modernization, renovation, or repairs of facilities that are primarily used for instruction, research, or student housing.



LEAs are prohibited from using funds for: payment of maintenance costs; stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; purchase or upgrade of vehicles; or improvement of stand-alone facilities whose purpose is not the education of children including central office administration or operations or logistical support facilities.

IHEs are prohibited from using the funds: to increase endowments, for the maintenance of systems, equipment, or facilities; for the modernization, renovation, or repair of stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; or the modernization, renovation, or repair of facilities used for sectarian instruction or religious worship or in which a substantial portion of the functions of the facilities are subsumed in a religious mission.