Education Jobs Bill Overview and Highlights

August 13, 2010

President Obama signed into law the Education Jobs Bill on August 10, 2010. The bill sets up a new program to provide $10 billion in funding assistance to the States to save or create education jobs for the 2010-2011 school year. The program is intended to provide jobs in education and education related services for pre-K, elementary, and secondary education.

The program is authorized in Public School Law. No. 111-226. North Carolina is expected to receive $300 million in this program for education jobs.

The funds are to be used for costs that occur beginning August 10, 2010. An LEA that has funds still in their budget at the end of the 2010-2011 school year may use those through September 30, 2012.

The Governor will submit an application no later than September 9, 2010 to obtain the funds. USED expect to award the grants to the States within in two weeks of the Governor’s submission and USED approval of the application.

The State may reserve up to 2 percent of the funding for administrative costs to carry out the requirements of the program. The State must make the awards to the LEA in a timely basis so the funds may be used during the 2010-2011 school year and there are prohibitions in the law for the use of the funds by the State such as the State cannot use the funds to establish, restore or supplement the rainy day fund.

The State must distribute the funds to the LEAs in one of two ways and in cannot combine the two ways. One method is based on the distribution of the ARRA funds and the other based on the LEAs share of the title I funds for the most current year.

The Governor may not tell the LEAs how to use the funds. If the LEAs do not need the funds to recall or rehire former employees they may use the resources to pay for activities such as salaries and benefits for teacher who provide instructional services in after school and extended learning programs.

LEAs may also use the funds to restore salary reductions and implement salary increases. The funds may not be used for any period prior to August 10, 2010. The LEA may not sue the funds for contractual reasons unless the contract is for educational and related services with another LEA and only for salaries and benefits.

Further information can be obtained at the US Dept of Education web site:

http://www2.ed.gov/programs/educationjobsfund/applicant.html

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