February 17, 2009 Update - Stimulus Bill

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Here’s a summary of how the Economic Stimulus Bill that President Obama will sign today will affect education. We expect to receive additional information on the impact the package will have on Ohio and our CH-UH District,

 
A preliminary summary of some of the key areas of interest to OFT members includes the following highlights from the compromise:

Investments in Education and Training ($105.9 billion) include:
  • $53.6 billion for the State Fiscal Stabilization Fund, including $39.5 billion to local school districts using existing funding formulas and to institutes of higher education, which can be used for preventing cutbacks, preventing layoffs, school modernization, or other education-related purposes; $5 billion to states as bonus grants for meeting key performance measures in education; and $8.8 billion to states for high priority needs such as public safety and other critical services, which may include education and for modernization, renovation and repairs of public school facilities and institutions of higher education facilities.  
  • $13 billion for Title 1 to help close the achievement gap and enable disadvantaged students to reach their potential.
  • $12.2 billion for Special Education/IDEA to improve educational outcomes for disabled children. This level of funding will increase the Federal share of special education services to its highest level ever.
  • $15.6 billion to increase the maximum Pell Grant by $500.  This aid will help 7 million students pursue postsecondary education.
  • $22 billion for QualifiedSchool Construction Bonds. The federal government will pay the interest on these bonds, which will save districts 40 percent on the total cost of bond issuances.
  • Child Care Development Block Grant: $2 billion to provide quality child care services for an additional 300,000 children in low-income families who increasingly are unable to afford the high cost of day care. 
  • Head Start & Early Head Start:  $2.1 billion to allow an additional 124,000 children to participate in this program, which provides development, educational, health, nutritional, social and other activities that prepare children to succeed in school. 
  • $3.95 billion for job training including State formula grants for adult, dislocated worker, and youth programs (including $1.2 billion to create up to one million summer jobs for youth).
Investments in Health include:
  • Medicaid Aid to States (Federal Medical Assistance Percentage or FMAP): $87 billion to states, which will increase by 6.2 percent the share of Medicaid costs the federal government reimburses states through the end of fiscal year (FY) 2010, with additional relief tied to rates of unemployment.
 
Fraternally,
Tom Schmida, President