There’s Still Hope for Emergency Aid

This week marks the final congressional session before the Independence Day recess. When Congress returns to Washington the week of July 12, there will be less than 50 legislative days remaining in the calendar year. There continues to be a growing belief in education policy circles that neither the ESEA reauthorization nor the fiscal year 2011 education appropriations bill (Labor, Health and Human Services, and Education) will be completed before the end of 2010.

However, there is some potential good news for emergency aid to help stave off anticipated education layoffs for the 2010-2011 school year. After considerable delay, it appears the House will be voting this week on the emergency supplemental appropriations bill (H.R. 4899) passed earlier in the Senate. The bill currently includes:

  • $10 billion for K-12 education jobs, and
  • $4.95 billion for Pell shortfall (this leaves a remaining $717 million shortfall that will impact K-12 funding in the fiscal year 2011 appropriations). 

The bill pays for, or offsets, some of these costs through $12 billion in reallocated federal funding, including $800 million from grant programs administered by the U.S. Department of Education.

It is estimated that the $10 billion for the Education Jobs Fund will help retain an estimated 140,000 school employees in positions for next school year. The fund will be administered by the Department of Education. After reviewing state applications, the department will make formula allocations to states based on total population and school-age population. States will then distribute the funds to school districts through their respective funding formulas or based on each district’s share of Title I funds.

Strict provisions are also included to ensure that states use these funds only for preservation of jobs serving elementary and secondary education and not to supplant state spending on education. The Education Jobs Fund may not be used for equipment purchases, utilities, renovation, transportation, debt reduction, or to supplement “rainy-day funds.”

Unfortunately, H.R. 4899 does not include funding for the Federal Medical Assistance Programs. Congressional aides are hopeful this funding will eventually be added to the package.