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.

Eligibility Requirements

Applicant Eligibility

State (includes District of Columbia, public institutions of higher education and hospitals): Elementary/Secondary Education.

Local (includes State-designated lndian Tribes, excludes institutions of higher education and hospitals: Elementary/Secondary Education

Beneficiary Eligibility

State; Local; Specialized group (e.g. health professionals, students, veterans); Education Professional; Student/Trainee; School; Education (0-8); Education (9-12)


No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.


Application Procedures

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. The Governor must submit an application to the Department of Education (ED) containing assurances that the State will: (a) maintain support for elementary, secondary, and postsecondary education for FY 2009, 2010, and 2011 at the FY 2006 level; (b) take actions to address inequities in the distribution of highly qualified teachers; (c) improve the collection and use of data: (d) enhance the quality of the State s academic standards and assessments; (e) include English language learners and students with disabilities in State assessments; and (f) take actions to turn around schools identified for corrective action or restructuring under Title I, Part A of the ESEA, 20 U.S.C, 6301 et seq. Each State must also provide baseline data that demonstrates its current status in each of the areas described in the assurances referenced above, and a description of how it intends to use its allocation and other items as the Secretary may require.

Award Procedures

The Department of Education will make awards to States on a formula basis upon approval of the State application.


Contact the headquarters or regional office, as appropriate, for application deadlines.


American Recovery and Reinvestment Act of 2009 (ARRA), Title XIV (Public Law 111-5).

Range of Approval/Disapproval Time

Approval time will vary by State.


Not Applicable.


Not Applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. Sixty-one percent of State allocations will be based on relative shares of individuals aged 5 to 24, and 39 percent will be based on relative shares of total population. This program does not have MOE requirements.

Length and Time Phasing of Assistance

Any funds that the Governor does not subgrant or otherwise commit within 2 years will be reobligated. Funds are available for obligation until September 30, 2011. The Secretary of Education will reallocate any returned funds to the remaining States. See the following for information on how assistance is awarded/released: No information provided.

Post Assistance Requirements


For each year of the program, a State receiving funds under this title shall submit a report to the Secretary, that describes the uses of funds provided under this title within the State; the distribution of funds received; the number of jobs saved or created; tax increases averted; the State s progress in reducing inequities in the distribution of highly-qualified teachers, developing a longitudinal data system, and implementing valid assessments; actions taken to limit tuition and fee increases at public IHEs; and the extent to which public IHEs maintained, increased, or decreased enrollments of in-State students.

Specific reporting requirements are detailed in Title XV of ARRA.

No cash reports are required.

No progress reports are required.

No expenditure reports are required.

No performance monitoring is required.


In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. All grantees are subject to the provisions of the Single Audit Act, 31 U.S. Code 75, and OMB circular A-133.


Each recipient must maintain records that fully disclose the total cost of the activity for which the funds are used, the share of the cost provided from other sources, and other such records as will facilitate an effective financial or programmatic audit. The recipient shall maintain such records for three years after the completion of the activity for which funds are used.

Financial Information

Account Identification



(Formula Grants) FY 08 $0; FY 09 est $8,842,652,000; FY 10 est $0

Range and Average of Financial Assistance

Awards to States will vary in size from approximately $15 million to $1 billion. The average grant award will be approximately $160 million.

Regulations, Guidelines, and Literature

Guidance for this program will be developed. Contact the program office for additional information.

Information Contacts

Regional or Local Office


Headquarters Office

James Butler Office of Elementary and Secondary Education, Department of Education, 400 Maryland Ave., S.W., Washingon 20202 Email: Phone: (202) 260-9737

Criteria for Selecting Proposals

Not Applicable.

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