Q & A about EduJob Money

While this article is specific to PA, it contains good general information regarding the flow of $10 billion EduJobs funding to states and school districts.


The Morning Call (Lehigh Valley, PA)

August 13, 2010

Breaking down education jobs money
It can be used for hiring, rehiring, or paying expenses related to current employees.

With $878.8 million of federal cash soon on its way to Pennsylvania to help stave off education job losses, many Lehigh Valley school districts are wondering how they can put the money to work without increasing spending in the long-term.

The U.S. Department of Education on Friday clarified how districts can use the money not only for hiring or rehiring, but also for maintaining its current work force, such as paying for benefits, professional development and pension costs.
The Morning Call compiled the following questions and answers to explain the new program:

Q: What is the purpose of the money?

A: Congress passed $10 billion in education job money Tuesday for districts to use for compensation, benefits and other expenses associated with hiring, rehiring or keeping current employees on the payrolls. Allowed uses of the money include salaries, performance bonuses, health insurance, retirement benefits, incentives for early retirement and pension fund contributions.

Q: Which employees can be supported with the money?

A: Teachers, principals, assistant principals, academic coaches, teacher trainers, classroom aides, counselors, librarians, secretaries, social workers, psychologists, interpreters, physical therapists, speech therapists, occupational therapists, technology personnel, nurses, athletic coaches, security officers, custodians, maintenance workers, bus drivers and cafeteria workers.

Q: When will the money be available?

A. States must first apply to the U.S. Department of Education, which expects to issue money to approved state within two weeks. States may use 2 percent of the money for program administration, but must make the remaining 98 percent of money available to local school districts. The Education Department expects the money to be available locally by September.

Q: How will districts get the money, and how long does it last?

A: The money will be distributed through either the basic education funding formula or the federal Title I formula, depending on what the state decides. Individual district amounts have not yet been released by the state. Districts are encouraged to use the money this school year, but have until September 2012 to spend it.

Q: Can the state tell local districts how to use the money?

A: No. Local districts can use the money how they see fit so long as they meet all other requirements and guidelines both in the law and issued by the Education Department.

Q: Does the money mean districts will definitely be hiring?

A: No. Districts should be careful not to hire new people using one-time money unless they know they can afford the increased costs in the long run, after the federal money is gone. In many cases, districts will probably report saving jobs and use the money for expenses such as professional development.

Q: How will the impact be tracked?

A: States and local school districts will be required to report how they use the money and how it supported personnel in quarterly reports similar to those required for stimulus money. The first report will be due in October.

christopher.baxter@mcall.com
610-778-2283
MORE INFORMATION
See the U.S. Department of Education's website for the Education Jobs Fund at http://www2.ed.gov/programs/educationjobsfund/index.html. Specific questions can be e-mailed to EducationJobsFund@ed.gov