May 22, 2012


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Aid for Facilities

Jun 1, 2009 12:00 PM, By Mike Kennedy (mkennedy@asumag.com)

Economic stimulus funds from the federal government provide numerous avenues for schools and universities to improve facilities.

Yes, you may — but maybe you shouldn't

When the economic stimulus package was approved, the U.S. Education Department guidelines stated that local education agencies (LEAs) were allowed to use Education Stabilization funds for new construction. But in May, the department revised its guidelines to say, "Yes, but … "

"An LEA … may use the funds to support the construction of new school buildings," the Education Department stated. "However, the Department discourages LEAs from using Education Stabilization funds for new construction because this use of funds may limit an LEA's ability to meet other essential needs or implement necessary reform initiatives."

The department makes a distinction between new construction and modernization. It is not discouraging school systems from using stabilization funds for modernization, renovation or repair.

The statement also warns states and school systems that Education Secretary Arne Duncan will take into account whether they have used stabilization funds for new construction when he decides who will get some of the $5 billion in competitive grants under his discretion.

The Education Department plans to conduct a competition among states for a $4.35 billion "Race to the Top" fund to improve education quality and results. Another $650 million will be available through the "Invest in What Works and Innovation" fund. Districts and non-profit groups with a strong track record of improving education will compete for those funds, the department says.


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