How Public Charter Schools May Benefit from the American Recovery and Reinvestment Plan
President Barack Obama signed the American Recovery and Reinvestment Plan today. The landmark $789 billion legislation provides $463 billion for transportation and infrastructure upgrades and construction, health care programs, education assistance, housing assistance, and energy efficiency upgrades and $326 billion in personal and business tax breaks and other tax provisions.
The Department of Education received significant new funding that can benefit public charter schools. Over $100 billion in direct spending primarily is designated through already existing programs (e.g., Title I, IDEA) and the newly authorized State Fiscal Stabilization Fund. The State Fiscal Stabilization Fund became the primary new education program in the bill, and absorbed the funding for modernizing public schools that had been included in earlier versions of the bill.
In total, the stabilization fund will receive $53.6 billion. State governors will be required to apply to the Secretary of Education for their share of monies allocated through the Stabilization fund. Within the stabilization fund, $5 billion was reserved for State Incentive Grants and of that amount $650 million will be further reserved for the Secretary’s Innovation Fund (leaving 4.35 billion for incentive grants). Both of these programs are targeted at efforts to close the achievement gap and are discretionary grants awarded by the Secretary of Education.
Of the remaining approximately $48 billion, states will receive funding under a two-part formula: a) 61% of any allocation will be based on the state’s population of people ages 5-24 relative to the rest of the country and b) 39% will be based on their relative total population of the country. A total of 81.8% of a state’s funding must go to restoring state support for education cuts (including Higher Education, which is often the first place cuts are made to education spending during economic down turns). The remaining 18.2% of the funding may be used for supporting education, although it can also go to supporting other state needs, including funding for modernizing schools. Local Education Agencies(LEAs) that receive funding from the second pot of money may use its allocation to modernize its facilities, and the report accompanying the bill recognizes charter schools as beneficiaries of the funding too.
In addition to the direct spending increases, several tax portions of the bill can benefit public charter schools, including a newly-authorized $22 billion school construction bond program, $10 billion to the New Markets Tax Credit Program, $25 billion in recovery zone bonds, and $1.4 billion in new funding to the Qualified Zone Academy Bonds - all tools charters will be able to tap to finance facilities.
Additionally, several reform-oriented programs received new funding in this bill, including $200 million for the Teacher Incentive Fund and $250 million for the development of State Wide Longitudinal Data Systems. The Credit Enhancement for Charter School Facilities Program unfortunately did not receive any new funding and will rely on its FY09 appropriations until a new appropriation is made in FY10.
Mr. President, you are doing a great thing by ackowledging Charter schools in this way. This may be coming to you late, but I think your vision is quite clear and you are to be revered for your insight. Thank you. What a great thing it is to have a President who cares!
Thank you for the support you have offered charter schools. This type of funding will allow us to close the achievement gap by providing the funds necessary to obtain needed technology and equipment. Our students need to know they are supported not only by their teachers, but those in leadership at the district, state, and national levels. Thank you again and God bless you in your endeavors.
Thank you so much Mr. President for supporting public charter schools! I truly believe charter schools are key to the future of education in America. My own child will be enrolled in charter school this Fall, and it means so much that you are doing your best to preserve educational choice and innovation in our country.
Thank you, Mr. President.
Ms. Strong,
Thanks so much for your service, and please come home safely. Our charter schools--and public schools in general--need all hands on deck.
Sincere gratitude to envison that Charter Schools are being considered..Sometimes we (Charter) sense we are a bit out in right field, where many opportunities/funding do not come along as often. Thank you for considering Charter. I believe that the dedicated teachers as well as myself in the Charter system are striving daily for student understanding, student growth and mastery..so our students will be productive individuals in the new mellinium...
We need all the help we can get.
The stimulus bill is one of the worst legislative actions possible and a terrible choice at this time. Bills and obligations should be paid by those that incur them, and who benefit from them. The stimulus bill assigns payment to citizens throughout the country for items they have no idea about. Yes, charters need additional funding, but so does everybody. For Washington to give us one dollar of benefit, it must take much more than one dollar from everyone else in the country (including those that do not support charters, i.e. coercively), with the bureaucrats taking their share of the amount greater than one dollar each time it passes through them or their office. Also, the debt being run up by government is astounding, and will be inflationary-leading to a loss of equity, wealth and income by all of us later, most especially our children and grandchildren. This bill is a monstrosity and will lead to much greater difficulties for all of us down the line.
It is a relief to hear that we have not been forgotten. Many people forget what "we"teachers do for our communities. Where do lawyers, doctors and businessman learn to be what they are now? In school! It is nice to know that the Charter systems will receive the help needed to assisst our students and it will allow us to to let them know this way that their education and sucess is the most important thing in our lives as educators.
As parents and as citizens of the USA we should all be concerned about education. Please continue to keep education our highest priority. The children that we educate today will be the same ones that are making decisions tomorrow that ultimately effect everyone and everything! We should all be praying for out children, our country, and our leaders as we head thru these new and scary times.
Isn't the internet a wonderful tool. I am currently stationed in Iraq, doing my civic duty to my country, however I am still able to keep in touch with the world. I love the U.S.A. When I am not in the military I am a paraprofessional in the Charter School System. I am so proud of the school that I work at and I know that this funding is going to assist us to do even more for our well deserving students. Thank you so very much.
It is so refreshing to be a small part of a charter school and to receive recognition for being a part of the educational system. Support for the charter system is hugh and I am hopeful that funds will be directed in our direction so we can continue to serve our children in the manner in which they deserve.
This is a huge relief! I am so glad to hear that the Charter Schools will be better supported financially. It is obvious daily that there is a need. Our students so desperately deserve the best education we can give them. Exciting!
Thank you so much for the support for Charter Schools. Our staff and students are in great need for added technology equipment. This will help us to close the achievement gap. Our staff contributes a lot of out of pocket money to help our students, but did not receive any raises or cost of living supplement. They too are suffering in this recession.
Teaching in a Charter School is nice to hear of something positive happening in the area of education, especially Charter Schools. We, teacher, are here because we love the kids and this will help us better serve them.
Thank you!
IN THESE HORRIBLE ECONOMIC TIMES, THIS IS LIKE A BREATH OF FRESH AIR! I THINK THIS IS A WONDERFUL OPPORTUNITY AND SHOULD BE AFFORDED TO THE CHARTER SCHOOLS. I TEACH IN A CHARTER SCHOOL IN AN AREA THAT IS GETTING HAMMERED BY THE BUDGET CUTS AND THIS IS LIKE A LIGHT AT THE END OF THE TUNNEL. THANK YOU SO MUCH.
It is my belief that both Charter and Public Schools that are of any substance work in the best interest of the children and school. It is rewarding to see the recognition from the government that both entities need financial support and will get it.
Belinda Shade-Moore
Paul PCS
This is good news. Charter schools are great.
I'm glad to know they will get the financial opportunity to help them continue to operate effectively
and adequately help educate the future of our tomorrow.
Our charter schools where developed to help provide our students, our own children and our community the best education. It is great to see that more financial oppertunities will allow us to continue to have a positive impact and make our dreams come true!!!
All children deserve access to funds that support their education.
I am glad to see that charter schools will have more financing opportunites for construction of new schools it is desperately needed.
This is wonderful news and will certainly help charter schools to level the financial playing field in public education. As the Head of School for a Title I high performing elementary charter school, I am cautiously optimistic about the impact this funding could have for our institution. Thank you for providing this update.
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