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Fiscal Stabilization


*Subject to federal agency allocation

Overview


82% is required for K-12 Education, special and higher education spending. The Governor must submit an annual application to the Secretary of Education that demonstrates:

  • Maintenance of effort for Education & Higher Education at 2006 levels, provides for Teacher Equity, uses COMPETES Act data collection & ESEA/IDEA Assessments
  • Baseline data for the state"s current status in these areas
  • Intended use of funds
  • Evaluation Plan

The remaining 18% may be used for other government services,- a generic term intended to provide stop-gap funding for general government.

Education | Program details

82% of fiscal stabilization funds ($363.1 million) must be used to provide the amount of funds, through the state's principal elementary and secondary funding formula at 2008 levels.

Once those levels have been met, the Governor may use the funds to provide local educational agencies in the state with subgrants to improve basic programs based on their relative distributions provided in Title I (A) of the Elementary & Secondary Education Act (ESEA) of 1965.

Since Arkansas has met and exceeded the 2008 level, funds under this provision will be distributed through Title I formula distribution subgrants.

Local educational agencies may use these subgrants for any purpose provided by the ESEA, the Individuals with Disabilities Act (IDEA), the Perkins Act (Technical Education), or for modernization, renovation and repair of K-12 and higher education facilities, so long as the funds are not used for administration, maintenance costs, stadiums or vehicles.

K-12 Education is currently budgeted above the FY08 level, so this would preclude Arkansas from using these funds for any purpose other than Title I subgrants. Higher Education could use $6.2 million to restore FY08 levels for FY09, but FY10 and FY11 allocations will exceed the FY08 level.

General Government | Program details

The remaining 18% of fiscal stabilization funds ($80.8 million) may be used for public safety and other government services". These funds may be allocated to any state program as the Governor deems necessary to prevent budget shortfalls for essential government services for FY09, FY10 and FY11. This may include Education and Higher Education.

Section 14002(2)(b):

OTHER GOVERNMENT SERVICES. -
(1) IN GENERAL - The Governor shall use up to 18.2% of the State's allocation under section 14001 for public safety and other government services, which may include assistance for elementary and secondary education and public institutions of higher education..."


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