The American Recovery and Reinvestment Act of 2009 and the American Recovery and Reinvestment Tax Act of 2009, part of broader federal efforts to stabilize the American economy, place education in its rightful place as a key strategy in a path toward economic recovery and long-term financial stability.
AMERICAN RECOVERY AND REINVESTMENT ACT
The economic stimulus package includes historic federal K-12 programs and provides states with resources to prevent cuts to K-12 education at the state level. In South Dakota, passage of the American Recovery and Reinvestment Act (ARRA) means a two-year investment of $203 million in serveral key education programs. In addition to the funding categories detailed below, ARRA provides $3.2 million in education technology grants to the state of South Dakota.
RACE TO THE TOP FUND
The Race to the Top Fund will reward $4.35 billion in competitive grants to states. States can increase or decrease their odds of winning federal support through their education policies. The competition will reward states for turning around failing schools, tracking student and teacher performance, recruiting and retaining effective teachers, and toughening academic standards. States will be acknowledged for past accomplishments as well as creating incentives for future improvement.
STATE FISCAL STABILIZATION FUND
ARRA provides South Dakota with $127 million through the State Fiscal Stablization Fund to prevent cuts to K-12 education in FY09, FY10 and FY11 and for other high-priority state needs.
TITLE I-A GRANTS
ARRA provides South Dakota $34.6 million in direct grants to local school districts through No Child Left Behind Title I-A grants, which are designed to serve students from families that live in poverty.
ARRA provides South Dakota $31.6 million in IDEA Part B grants, and also provides additional allocations through IDEA Part B Preschool grants and IDEA Part C Grants for Infants and Families.
ARRA provides funds for Impact Aid schools.
ARRA provides various opportunities for local districts to secure competitive grants.
SCHOOL CONSTRUCTION, MODERNIZATION AND REPAIR
The American Recovery and Reinvestment Tax Act is companion legislation that provides opportunities for school districts and local governments to access interest free bonds for new school construction, school modernization and facilities repair.