The Bottom Line
American Recovery and Reinvestment Act
Overview
The American Recovery and Reinvestment Act of 2009 (ARRA) is intended to stimulate the nation’s economy in the short term and invest in education and other essential public services to ensure the long-term economic health of the nation. It will provide about $100 billion specifically for education to save jobs, support states and school districts and advance reforms and improvements that will create long-lasting results for education. ARRA education funding includes three components:
How will ARRA impact Springfield Public Schools?
The Missouri General Assembly must first appropriate ARRA funds. Until that process is complete, school districts will not know for certain how much they will receive. Meantime, DESE has provided some guidance.
Initial estimates indicate SPS could recieve about $11 million over the next two years in funding earmarked for Title I and IDEA. In preparation to receive State Fiscal Stabilization Fund dollars, SPS has identified 150 facility improvement projects totaling $66 mllion.
Qualified School Construction Bonds
Federal stimulus funds for facility improvements are being made available to public school districts through interest-free bonds via the Qualified School Construction Bond program.
Missouri will be awarded $282 million over two years to allocate to school districts that pass a general obligation bond measure in 2009 or 2010. Each school district could then apply to receive a portion of the interest-free bonds available through the state.
Springfield Public Schools currently has excess bonding capacity and available debt-service funds which would enable it to issue a $40 million general obligation bond without having to increase its existing debt-service levy.
According to the district' investment advisor, SPS could issue a $50 million bond without increasing taxes by applying for the QSCB program. Of that $50 million SPS could likely qualify for at least $10 million in interest-free bonds through QSCB.
To qualify, SPS would have to put a measure before the voters either in November 2009 or April 2010.
In the next few weeks the board will consider facility needs and make a decision about when to ask voters to approve a measure. The board would have to vote by Aug. 25 to place a request on the November ballot.
