June 2009
May 28, 2009 – In addition to the “Special Stimulus Funding Alert: Policy Evolving on Section 613 (Local Adjustment Provision) Conditions Under Which Districts Can Use 50 Percent of IDEA Increase to "Free Up" Local Funds,” the Washington Update includes:

• In two recent reports, Governors and Chief State School Officers laid a foundation for increased funding and a framework for improving the quality of Extended Learning Opportunities/afterschool programs which could provide new marketing opportunities immediately and in the long run.  A preliminary review of district plans to spend Title I stimulus funding suggests the vast majority of initial obligations/expenditures will focus on expanded summer school programs and subsequent afterschool programs.
• In an E-Rate update, we have identified districts which are receiving potential E-Rate refunds for purchasing non-eligible products and services.  Also included are findings from a recent Government Accountability Office survey which identified the perceived high-demand eligible E-Rate services and products applicants will likely be purchasing and the highest non-eligible product priority -- increasing the number of or replacing existing computers for students and library patrons.
• Some small- to medium-sized districts under certain conditions can offer good opportunities for purchases of high-cost products and services which have low-reoccurring costs; these similarly-situated districts are those receiving large percentage increases in Title I funds and also are eligible to take advantage of the Section 613 local adjustment provision to free up an amount of local resources using up to 50 percent of their increase in IDEA funds.
• A recent report, cited by Secretary Duncan in recent speeches, from the Broad and Gates Foundations urges SEAs, and in turn districts, to use “transparent performance contracts” and similar approaches to turnaround the lowest-performing schools, including middle and high school “dropout factories.”  While the report urges that these schools be closed and then reopened to be operated by charter school entities, there are numerous opportunities for performance-based types of contracts to be used by many TechMIS subscribers who can partner with districts using School Improvement Grants and related funding to help these schools exit from corrective action or restructuring status.  Inclusion of performance guarantees also increases the probability of approval of multi-year contracts beyond the two years restrictions on the obligation of stimulus funding.
• Under “Miscellaneous Items,” TechMIS subscribers should be aware of
• A new practice guide regarding district selection and use of RTI approaches to assist students having difficulties with mathematics at both the elementary and middle school levels.
• A regulatory change which would allow school districts to receive Medicaid reimbursement for certain related services, amounting to $4 to $5 billion over five years.  Such reimbursements are used by many districts to purchase instructional software and materials.
• A guidance modification issued on May 11th which strongly implies that states and districts that use stabilization stimulus funding for new facilities construction will not be considered for competitive funding under “Race to the Top” competitive grants; this should increase the amount of stabilization funds, where possible, to be used for in-classroom-type instructional materials and related purchases.
• Passage by the House of the 21st Century Green High Performing School Facilities Act which, however, may fail to generate support in the Senate.

Topics addressed in the state profile updates include Federal stimulus funding, state budget issues, performance-based pay initiatives, instructional materials purchasing, and new assessment structures.