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Earlier this year, Congress passed the American Recovery and Reinvestment Act, ARRA, which included funds available to Minnesota schools.

ARRA Funding Summary

• Minnesota will receive over $1 billion in education-related ARRA funding.  The three largest pots are the State Fiscal Stabilization Funds (SFSF) totaling $816.7 million, Individuals with Disabilities Education Act (IDEA) totaling $204.6 million and Title I Part A totaling $94.9 million. 
  
  
• For State Fiscal Stabilization Funds, 82.2% must be spent on K-12 and higher education and 18.8% may be spent on any general government purpose. 
  
  
• In Minnesota, the funds targeted to education were used as follows:
  • $30 million to restore higher education funding in FY 2009 to its FY 2008 level;
  • $500 million to offset state aid reductions to K-12 general education in FY 2010; and
  • $137 million to offset state aid reductions to higher education in FY 2010. 
    
    
• The 18.2% general purpose funds were allocated by the Minnesota legislature primarily to offset operational costs of the Minnesota Sex Offender Program, Minnesota Security Hospital and Extended Treatment Operations program with a breakdown in funding as follows:
  • $100 million for human services;
  • $38 million for corrections; and
  • $604,000 is appropriated for higher education
    
    
• IDEA funding to Minnesota totals $204.6 million for the purposes of providing special education services to children birth through age 21.  These funds are allocated to school districts and charter schools via a formula in federal statute.
  
  
• Title I Part A funding to Minnesota totals $94.9 million for the purposes of providing additional education services to students at risk of failure.  It is important to note that not all school districts in Minnesota who typically receive Title I funding benefited from ARRA funds.  This is because the law specified two particular formulas (targeted and EFIG) to allocate funding. 
  
  
• While IDEA and Title I funds were available to schools in FY 2009, only two charter schools have indicated an interest in using the funds prior to FY 2010. 
  
  
• The Minnesota Department of Education has accelerated the development of a new financial system for the purposes of managing federal grant funding and will have the system available on July 1, 2009.  School districts and charter schools will apply for and request funds via this new system which will assist MDE to meet the transparency and reporting requirements of the ARRA.

Additional information on ARRA grant programs