A $825 billion federal stimulus package working its way through the U.S. House of Representatives could provide South Dakota districts relief in meeting the demands of No Child Left Behind (NCLB) and the Individuals with Disabilities Education Act (IDEA).

The House Appropriations Committee reported the “American Recovery and Reinvestment Act of 2009” Wednesday night on a 35-22 vote, clearing the way for Congressional sub committees to consider the various sections of the bill.

The legislation provides needed increases for key education programs and school districts nation wide, including two-year boots in Title I and IDEA funding for local school districts.

• Read a summary of the American Recovery and Reinvestment Act of 2009 by clicking here.
• Find out how much South Dakota schools would receive in Title I, IDEA and school construction by clicking here.

According to the National School Board Association, major components of the stimulus package include:

• $41 billion to local school districts through: Title I ($13 billion), IDEA ($13 billion), a new School Modernization and Repair program ($14 billion) and the Education and Technology program ($1 billion);
• $79 billion in fiscal relief to states, including $39 billion for K-12 and higher ed through existing state and federal formulas, $15 billion in bonuses for meeting key performance measures, and $25 billion for other high priority purposes - which can include education; and
• An extension of school-based Medicaid Services reimbursement to Oct. 2009.

State lawmakers have approached the concept of the federal stimulus with caution, suggesting that the state's budget concerns must be solved without the help of the federal government.

Despite the tempered approach, the stimulus could offer significant relief to the state's troubled general fund, either through unrestricted block grants or by changing the Medicaid match rate.

When asked about the stimulus package, Gov. Rounds said he may have to call a special session if the funds are released after the Legislature adjourns. He also said lawmakers could chose to allow the one-time federal stimulus to accumulate in reserves.

Comments (0) | Link to this story | Send to a friend | Print Story