ASBO International's Economic Recovery Blog

Jobs Saved … Temporarily

Although the stimulus funds have filled the gaps in many school budgets , the pavement will crack again soon. It’s no surprise to school business officials that a recent study found schools will face shortfalls after the stimulus ends.

"Using federal stimulus money to avoid layoffs at schools is going to create a shortfall even more difficult for states and schools to contend with when that money runs out," according to a study released Monday by New York State Comptroller Thomas DiNapoli, as reported by the Associated Press.

In July, the Government Accountability Office "cautioned that many states facing deep deficits were using stimulus dollars to fill budget holes and avoid layoffs, rather than reforms that could mean longer-term savings or programs such as building new schools." The Department of Education "encouraged schools to diversify the use of stimulus money to ward off huge budget gaps when it runs out, said spokeswoman Sandra Abrevaya. 'When one saves a job, it doesn't mean one saves it indefinitely.'"

How Will We Report on the ARRA Funds?

Confused about how to report on the use of ARRA funds, school business officials are wrestling with questions about data gathering, accountability, and requirements. That’s why, on Dec. 2, the Department of Education hosted a Webinar for ASBO members.

Participants discussed the burning questions of what qualifies as jobs saved, how to report on money that fills the budget gaps, and more.

Even if you missed the live report, you can still catch up by listening to the recorded Webinar and downloading the slides.

The Department of Education will keep the lines of communication open for school business officials. Maura Policelli, Special Assistant to Deputy Secretary of Education Tony Miller, who was on the webinar, relayed a promising message from the Deputy Secretary:

“…my boss remains very committed to engaging with all of you because we are very appreciative of the role you are all playing in this unprecedented time of not only economic strain but also some very
unique legislative initiatives that are great opportunities but also a lot of challenges in terms of the work that you all are conducting.”

Turnaround, Upside Down?

A new report from the Center on Education Policy questions the effectiveness of the Department of Education’s turnaround strategy.

Education Week reports that the Center on Education Policy "is raising questions about the wisdom of the Education Department's favored strategies for turning around the lowest-performing schools with stimulus funding, saying that its research shows that similar federal school restructuring strategies have not been effective.”

The Department of Education disagrees. According to the same Education Week article: “Judy Wurtzel, the deputy assistant secretary in the Education Department’s office of planning, evaluation, and policy development—which helps shape the department’s school improvement strategy—said states and districts are encouraged to draw on multiple strategies in revamping their poorest-performing schools. The four models the department now advocates, she said, “go far beyond” the catchall “other” option allowed under NCLB, which was chosen by more than 80 percent of restructuring schools in the center's study.”

ASBO Has the Talking Stick

And the Department of Education is listening. Whether you participated in ASBO’s exclusive Department of Education ARRA webinar or missed it, you can still voice your opinion. The Department of Education asked ASBO to collect your questions so that they can answer them.

As school business officials, you are the front line of reporting on the stimulus funds. You know that you have questions about how to account for money used to fill the gaps and whether there will be more money on the way.

Write your questions as comments to this post, and together, we’ll get the answers you need.