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News
Iowa
Receives $316 in Federal School Stabilization Funds
Posted 3 June 2009
The U.S. Department of Education has approved Iowa’s application for
the first $316 million in State Fiscal Stabilization Funds available
for public education through the American Recovery and Reinvestment Act
(ARRA).
“Even in a time of national economic challenges, we must always keep
our commitment to students, families, and teachers,” said Governor Chet
Culver. “As a former teacher, I believe investment in schools is an
investment in our state’s future. These Recovery Act funds will help us
keep our promise to students, and will help put Iowa in a position to
come out of this economic situation stronger than before.”
The amount represents 67 percent of the total State Fiscal
Stabilization Funds available to Iowa. The state will be eligible to
apply for another $156 million this fall. The stabilization funds are
allocated through the fiscal year 2009-2010 state budget, which was
approved by the Iowa legislature. School districts will receive the
money through the established state aid payment distribution method
beginning this month.
The State Fiscal Stabilization Fund program is new, one-time funds the
USDE is awarding to Governors and states to help stabilize state and
local budgets in order to minimize and avoid reductions in education
and other essential services.
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