President Barack Obama has now signed into law the $787 billion economic stimulus package that includes $115 billion to public education. This amount is nearly double the U.S. Department of Education’s entire $59.2 billion discretionary budget for fiscal 2009. The $115 billion appropriation to education includes $5 billion that is under the control of the U.S. Secretary of Education to give to states as bonus grants for meeting key performance measures in education.
The $5 billion incentive fund, which is within the $53.6 billion state fiscal stabilization fund that is part of the education appropriation, would include $650 million for innovation grants to school districts that could be models for best practices. The innovation money would go to local districts, nonprofit organizations, or consortiums of school districts.
The incentive fund money won't be available until 2010, after states are able to put their stabilization funds (which, depending on the state, have included early-childhood education, after-school programs, professional-development money, and actual school staff) in place. To get a grant, a state has to show how it is in compliance with a few measures under the No Child Left Behind Act already required under the law. They also have to put in place a statewide data system to measure student progress and make sure their standards lead students to college or other postsecondary training.
However, there are no clear criteria on how states qualify to receive the incentive money and what states need to do once they receive the money. The Administration argues that the incentive funds will encourage schools to find ways to have students be more competitive globally, while critics state that the lack of explicit criteria does not encourage significant educational reform.
It is probable that specific criteria will need to be developed to maintain transparency and accountability in the distribution and use of these funds. This seems to be a great opportunity for evaluators, nonprofits, government and the education community to come together to develop and implement such criteria for both the short and long term. I would really be interested in your opinions and ideas on how those criteria can be developed.
NOTE: On March 10, 2009, at 1pm eastern time the U.S. Department of Education will present a webinar on the Economic Stimulus & Powering Through the Recession. Discussion will center around what the stimulus package will mean for K-12 budgets. Click here to register for this event.