Districts Prep for Stimulus Funding
North Scottsdale Independent 4/22/2009
By Zach Colick, Independent Newspapers
Scottsdale Unified School District officials say they are entering “uncharted waters” in trying to deal with massive budget cuts to K-12 education, but remain hopeful federal dollars are on the way to help make sailing a little smoother.
SUSD is dealing with cutting millions of dollars from its fiscal year budget as the state Legislature deals with a $900 million short fall. The district’s budget could drop from $27 million for the 2008-09 school year to an anticipated, “best-case scenario” of $13 million for the 2009-10 school year.
“ We’re in unchartered waters, and I think that’s what’s scary at this point,” said Dr. David Peterson, SUSD’s superintendent of maintenance and operations. Dr. Peterson has said the lack of available financial information from the state Legislature on education funding for the 2009-10 school year has been troublesome at best for the district, which was forced two weeks ago to lay off 221 teachers and 29 adminis trative positions.
The superintendent of maintenance and operations believes timeliness for the state Legislature to develop its fiscal year budget by June’s end put school districts in a difficult position. School districts were required to notify their teachers by April 15 whether they were guaranteed a job for the next school. Dr. Peterson believes the conflicting deadlines were unfair to SUSD officials who didn’t — and still don’t — have a clear picture of the state’s financial picture.
“ Teachers have passion for their jobs, and all of a sudden the state is taking that away from them,” he said. While money may become available later this fall through the American Recoveryand Reinvestment Act to help solve SUSD’s budget problems and possibly help retain the 221 laid off faculty members, federal dollars coming initially to SUSD by April 30 are dedicated solely for specific programs.
The U.S. Department of Education released $44 billion April 1 in economic stimulus money, of which $1.4 billion becomes available to state schools. Arizona schools are set to receive $195 million for low-income and $178 million for special education students, according to the Arizona Department of Education.
Dr. Peterson said SUSD is primed to receive $7.8 million, or $3.9 million for the next two years, that will directly benefit spe cial needs and Title I students. Title I students — those who receive free and reduced lunch — as well as special needs students represent approximately 20 percent of the total SUSD population, Dr. Peterson said. SUSD has six schools designated as Title I and also has three schools that receive targeted assistance, where Title I funds are used to assist at-risk and low-income students. Dr. Peterson said the district’s endowed Title I money, totaling $2 million, will be used to pay teacher salaries and create professional development programs to help low-income students achieve higher tests scores in the classroom. SUSD already uses $2.7 million to help Title I students through reading, preschool and summer programs.
To receive this funding, however, states must meet maintenance of effort law require ments by showing that 2009 state education budgets at least meet 2006 state education budget levels, according to Rep. Eric Meyer (D-Scottsdale), who also serves on the SUSD Governing Board. Rep. Meyer said if schools cannot meet the maintenance of effort requirements, states can receive a waiver if they can show their education budgets are not being disproportionately reduced.
Federal officials said guidelines for the American Recovery and Reinvestment Act also require states to report the number of jobs saved through stimulus package funding, the amount of state and local tax in creases averted and how funds are used. It further requires the bulk of federal dollars be spent on education.
Part 2 of the State Stabilization Fund Application, available this summer to local school districts, allows states to apply for the last one-third of stabilization funds, which includes $13.1 billion for education and $2.9 billion designated for the Government Services Fund. Guidelines for Part 2 require states to submit the required data or provide an explanation of why the data is currently unavailable, as well as a plan for collecting it by 2011.
“Every dollar we spend must advance reforms and improve learning,” said Secre tary of Education Arne Duncan in a news release. “ We are putting real money on the line to challenge every state to push harder and do more for its children.”
Times are just as tough in Cave Creek, where Cave Creek Unified School District is scrambling for ways to make up for its woes stemming from state budget cuts to education. Options from reducing teaching and administrative staff to closing one of the district’s middle schools have been batted around by CCUSD school board members in efforts to reduce an overinflated budget.
According to Superintendent Dr. Debbi Burdick, CCUSD stands to receive just more than $1 million in federal funding. She ex plained $844,000 of that will go toward special education and about $167,000 toward Title I funding.
“It’s not very much, but we’re still grateful,” she said.
Despite the additional money, Dr. Burdick noted there are restrictions on how the money can be used.
“It can only be used for new programs,” she said. “It can’t be used to backfill and (personnel) cuts made and the new programs must be sustained within two years by the district.”
The CCUSD Governing Board during its April 14 meeting approved a letter the district is sending to Gov. Jan Brewer and state legislators expressing the school board’s fear of how state cuts will impact a district as small as CCUSD, which has about 6,000 students. ,CCUSD board members also point out in the letter smaller enrollment leads to less federal funding compared to neighboring districts.
Editor’s note: News Editor Dave Casadei contributed to this story.


