Ltr2-09: ARRA, Title I, Part A
August 19, 2010
Dear County Superintendents of Schools and Treasurers:
NOTICE OF THE SECOND APPORTIONMENT FOR THE AMERICAN RECOVERY
AND REINVESTMENT ACT OF 2009 (ARRA), FOR TITLE I, PART A, OF THE
ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965
FISCAL YEAR 2009-10
This apportionment, in the amount of $79,022,151, is made from federal funds provided to the State under the American Recovery and Reinvestment Act of 2009 (ARRA) (Public Law (PL) 111-5) designated for the Title I, Part A program under the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the No Child Left Behind Act of 2001 (NCLB) (PL 107-110). ARRA funding for the Title I program is in addition to the regular Title I federal appropriation, intended to provide assistance to local educational agencies (LEAs) and schools that have high concentration of students from families that live in poverty in order to help improve teaching and learning for students most at risk of failing to meet State standards. The additional funding is designed to enable LEAs not only to serve more students beyond those currently served but also to help boost the quality of the services provided.
Total ARRA funding for the Title I program is $1.125 billion. Fifty percent of this amount ($562.5 million) was awarded to the State in April 2009 and was appropriated in the California Budget Act, as amended, for fiscal year 2008-09. The other 50 percent was awarded in August 2009, and was appropriated in the Budget Act for fiscal year 2009-10. After mandated
set-asides, the total amount available for allocation to LEAs is $540.0 million for each of the two fiscal years. For fiscal year 2009-10, $526.5 million is for Title I, Part A, and $13.5 million is for Title I, Part D.
In order to comply with the federal cash management requirements, the amount paid in this apportionment is equal to 25 percent of each LEA’s total ARRA Title I, Part A entitlement calculated based on the total ARRA funding for the program (i.e., from the amounts appropriated for fiscal years 2008-09 and 2009-10) minus the LEA’s cash balance as of June 30, 2010, and the amount paid in the fourth apportionment for the fiscal year 2008-09 grant award (per Notice of the Fourth Apportionment for ARRA Title I, Part A, dated August 17, 2010). Cash balance was determined by deducting the expenditures reported in the ARRA Section 1512 fourth quarter report, which covers the program period through June 30, 2010, from the total amount apportioned prior to the submission of the report.
Newly eligible charter schools, which were not apportioned ARRA funds previously and thus were not required to submit the June 30 ARRA Section 1512 quarterly report, are also included in this apportionment.
Cash management procedures were implemented in apportioning ARRA funds in order to reduce the time elapsing between the receipt and disbursement of federal funds, pursuant to the cash management requirements under federal statute and regulations.
Funding for this program is appropriated under Item 6110-134-0890, Schedule (5), of the Budget Act of 2009 (Chapter 1, Statutes of 2009, Third Extraordinary Session, as amended by Chapter 1, Statutes of 2009, Fourth Extraordinary Session).
An LEA is eligible for ARRA funding if it "has at least 10 formula children and in which those formula children comprise at least 5 percent of the LEA's school-aged population." For additional details, see Items A-5 and A-6 in the April 2009 guidance issued by the United States Department of Education (ED), located at http://www.ed.gov/policy/gen/leg/recovery/guidance/title-i.pdf.
Use of Funds
These funds must be “used consistent with the Title I, Part A statutory and regulatory requirements, including the requirements to provide equitable services to eligible private school students. Uses should be aligned with the core goals of the ARRA to save and create jobs and to advance reforms consistent with the requirements of Title I.” Examples of possible uses of Title I, Part A ARRA funds consistent with ARRA principles are listed in the ED Web site at http://www.ed.gov/policy/gen/leg/recovery/factsheet/title-i.html. Additional federal guidance on allowable uses of ARRA Title I, Part A funds is available at http://www.ed.gov/policy/gen/leg/recovery/guidance/titlei-reform.pdf.
Federal guidance notes that ARRA funds are one time and will likely not be available at the same level, if at all, beyond September 30, 2011. Use of funds on short-term investments with potential long-term benefits is encouraged.
Pursuant to Section 1512 of ARRA, LEAs will submit quarterly reports that cover cumulative activities from the beginning of the grant period. It is anticipated that the fifth report will cover the quarter ending September 30, 2010. At a minimum, grantees should anticipate reporting: (1) the total amounts of ARRA funds received, (2)amounts of ARRA grant funds expended on or obligated to projects or activities; (3) the name, description, and evaluation of the project or activity’s completion status; (4) an estimate of the number of jobs that were saved or created with the ARRA funds; and (5) for infrastructure investments, the purpose, total cost, and rationale for funding the investment and the name and contact information of the person to contact regarding the project. Reporting guidelines from the Office of Management and Budget and the ED are available at http://www.cde.ca.gov/ar/rr/ (Section 1512(c) and (f) of the ARRA).
Grant Award, Other Information
The ED award number for this apportionment is S389A090005. The Catalog of Federal Domestic Assistance subprogram number is 84.389A, Title I Grants to LEAs, Recovery Act.
This grant award is subject to the provisions of Title I and Title IX of the ESEA, as applicable, and the General Education Provisions Act (GEPA). This grant is also subject to the Title I regulations in Title 34 of the Code of Federal Regulations (CFR), Part 200, and the Education Department General Administrative Regulations (EDGAR) in 34 CFR parts 76 (except for 76.650‑76.662, Participation of Students Enrolled in Private Schools), 77, 80, 81, 82, and 85. Regulations regarding Participation of Eligible Children in Private Schools are found in 34 CFR sections 200.62 - 200.67.
Under the federal Tydings Amendment, Section 421(b) of GEPA, any funds that are not obligated at the end of the federal funding period, July 1, 2009, through September 30, 2010, shall remain available for obligation for an additional period of 12 months, to September 30, 2011, subject to the limitation in Section 1127(a) of the ESEA. That subsection allows an LEA to carry over no more than 15 percent of its Title I, Part A allocations, including ARRA Title I, not including funds received through any reallocations under ESEA Section 1126(c), for one additional fiscal year, unless it receives a waiver from the California Department of Education (CDE) or its total allocation is less than $50,000.
Title 34 of the CFR, Section 80.21(i), requires that any interest earned by LEAs on federal dollars be returned to the ED promptly, but at least quarterly. LEAs may keep interest amounts up to $100 per year for administrative expenses. LEAs should forward interest payments for remittance to the ED to:
California Department of Education
P.O. Box 515006
Sacramento, CA 95851
To ensure proper posting of payments, please include the program’s Project Cost Account (PCA) number (PCA 15005) and identify the payment as “Federal Interest Returned.”
Beginning in fiscal year 2010-11, letters of apportionment from the CDE’s School Fiscal Services Division are no longer being mailed to the county superintendents of schools. Instead, county superintendents will be notified of each apportionment by e-mail. Accordingly, the CDE has sent an e-mail to each county superintendent, addressed to the county’s CDEfisc e-mail address, to inform him or her of this apportionment. The e-mail contained a link to the CDE Categorical Programs Web page at http://www.cde.ca.gov/fg/aa/ca/ where, under the program name, the letter and schedule for this apportionment are posted. The CDE requested that the e-mail be forwarded to all school districts in the county.
Warrants will be mailed to each county treasurer approximately four weeks from the date of this Notice. For standardized account code structure (SACS) coding, use Resource Code 3011, NCLB: ARRA Title I, Part A, Basic Grants Low Income and Neglected, and Revenue Object Code 8290, All Other Federal Revenue.
Each recipient and subrecipient awarded funds made available under the ARRA must promptly refer to the ED’s Office of Inspector General any credible evidence that a principal officer, employee, agent, contractor, subrecipient, subcontractor, or other person has submitted a false claim under the False Claims Act or has committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving those funds. Information about the Office of Inspector General Hotline is available at http://www.ed.gov/about/offices/list/oig/hotline.html.
If you have any questions regarding the Title I program, please contact the Title I School Support and Title I Basic Office by phone at 916-319-0854. For questions concerning this apportionment or the ARRA entitlement amounts, please contact Leslie Sharp, Fiscal Services Assistant, Categorical Allocations and Audit Resolution Office, by phone at 916-323-4977 or by e-mail at firstname.lastname@example.org.
Susan Lange, Deputy Superintendent
Finance, Technology, and Administration Branch