Recovery Act Recipients Report Funding Continues to Support over 300,000 Education Jobs
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February 1, 2010
Contact: Sandra Abrevaya
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On Jan. 30, the Recovery Accountability and Transparency Board released job numbers showing that Recovery Act education funding played a significant role in stabilizing the nation's economy and in staving off a major fiscal crisis in 2009.

For the quarter ending Dec. 31, 2009, grant recipients reported over 300,000 education jobs, such as teachers, principals, librarians, and counselors. In total, the Department of Education funding supported approximately 400,000 positions including corrections officers, public health personnel, and construction workers. These numbers are consistent with the data submitted in October during the first round of Recovery Act reporting.

The consistency of these jobs numbers reflects the steady and profound impact of Recovery Act funding that is being used to fill over $40 billion in projected state education budget shortfalls for FY '09 and FY '10. State and local budgets remain strained, but the second round of ARRA reporting makes clear that most school systems throughout the country would be facing more severe fiscal situations without this funding.

A detailed analysis of the reported data shows a slight decline in SFSF jobs this quarter, reflecting that a significant portion of this funding was used in the previous reporting period as states filled immediate funding needs. Conversely, the number of jobs attributed to IDEA and Title I Recovery Act funding increased significantly between the first round and this reporting period – a 47% increase for IDEA and 41% increase for Title I. The accelerated use of these funds suggests that in the first quarter they were used to lay the groundwork for meaningful reform programs and now are generating the jobs to support the these programs while continuing to fill positions threatened by state or local budget cuts.

The data posted on represent the second quarterly report of Recovery Act spending. As part of the unprecedented transparency requirements of the ARRA, all prime recipients of over $25,000 in funding are required to report quarterly on their expenditures. Approximately 98% of the 2,514 Department of Education Recovery Act grant recipients required to report for the quarter ended Dec. 31, 2009, filed reports on time.

The Department of Education will continue to provide additional transparency beyond the reports posted on by aggregating and presenting data on a program-by-program and state-by-state basis to allow for easier tracking of education dollars. This information will be posted on in the coming week.

To summarize the distribution of funding, the Recovery Act provided approximately $100 billion to the U.S. Department of Education with the initial goal of delivering emergency education funding to States. Thus far, $69 billion of these funds have been awarded to states and other eligible recipients through the following grant programs:

Program Awarded as of 12/31/09
SFSF $36.9 billion
Title I $10.0 billion
IDEA $12.2 billion
Student Financial Assistance $8.7 billion
Education Technology $649 million
Vocational Rehabilitation $539 million
School Improvement Grants $149 million
Independent Living $73 million
McKinney Vento Homeless $70 million
Teacher Incentive Fund $54 million
Impact Aid $40 million

In addition to supporting education jobs throughout the country, these funds were intended to lay the foundation for meaningful education reforms. Since the implementation of the Recovery Act big steps were also made towards the four education reform priorities at the core of all ARRA grants and at the foundation of the Department's overall agenda to promote:

Examples of such momentum include the fact that 12 states passed significant legislative reforms in line with these reform priorities, 40 states and the District of Columbia applied for Race To The Top fund, and ARRA funds have been used for substantial investments innovative professional development and classroom technology practices aimed at improving student achievement.

Approximately $30 billion dollars in additional ARRA funding will be distributed in the coming months to continue supporting jobs and furthering the Department's four reform priorities. The Department will also continue to promote this agenda through other efforts beyond the Recovery Act such as the FY 2011 budget negotiations and the reauthorization of the Elementary and Secondary Education Act (ESEA).



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Last Modified: 02/16/2010