In April 2009, the U.S. Department of Education released a guidance document on the State Fiscal Stabilization Fund Program
The following list is the statutory prohibitions on an LEA’s use of Education SFSF funds Section 14003 of the ARRA prohibits an LEA from using Education Stabilization 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;
- Financial assistance for students to attend private elementary or secondary schools, unless the funds are used to provide special education and related services to students with disabilities, as authorized by IDEA (Section 14011 of the ARRA);
- Restoring or supplementing a “rainy day” fund;
- Improvement of stand-alone facilities whose purpose is not the education of children, including central office administration or operations or logistical support facilities;
- School modernization, renovation, or repair that is inconsistent with state law;
- Any casino or other gaming establishment, aquarium, zoo, golf course, or swimming pool (See Section 1604 of the ARRA); and
- 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.
For more information on what is considered an allowable use of funds please see the U.S. Department of Education's Guidance on the State Fiscal Stabilization Fund Program.
Contact us by email or by phone at 512.936.3647 or join the Stimulus: Funds for Texas Education listserv.
Reporting fraud, waste, or abuse to the State Auditor's Office
The SAO investigates allegations of fraud, waste, or abuse involving state funds and resources. This includes fraud, waste, or abuse involving the Federal Stimulus or American Recovery and Reinvestment Act (ARRA) funds. To report fraud, waste, or abuse to the State Auditors Office, call the
SAO Hotline at
1-800-TX-AUDIT (892-8348) or visit the Web site
https://sao.fraud.state.tx.us/hotline.aspx.