The Raleigh Report
from the office of Representative Marian McLawhorn
January 21, 2010

Members of the House of Representatives came into this session knowing we would face a financial challenge. We were determined not to let it stop us from moving this state forward, particularly in the area of education.  North Carolina has a history of being a leader and reformer in the field of education.

In the face of financial difficulties, federal stimulus funds played a significant role in preserving education across the state. The following information highlights just some of the ways federal stimulus dollars have been spent to improve education in North Carolina.

If you have any questions, or if I can be of assistance, please feel free to contact me. Thank you as always for your interest in the work of the General Assembly and state government and thank you for your support.

State Fiscal Stabilization Funds (SFSF)

_The State Fiscal Stabilization Fund (SFSF) program is a new one-time appropriation of $53.6 billion (nationally) under the American Recovery and Reinvestment Act of 2009 (ARRA). These funds are distributed directly to states to:

• Help stabilize state and local government budgets in order to minimize and avoid reductions in education and other essential public services.
• Help ensure that local educational agencies (LEAs) and public institutions of higher education (IHEs) have the resources to avert cuts and retain educational personnel and staff.
• Help support the modernization, renovation, and repair of school and college facilities.
• Help advance early learning through post-secondary education reforms to benefit students and families.

_Each state is required to use 81.8 percent of its SFSF towards primary, secondary, and post-secondary education.  States are required to restore funding for the next three state fiscal years to the greater of state fiscal year 2008 or 2009 levels.  The remainder of the SFSF, 18.2 percent, is directed toward other public services, including public safety. 

_As of January 2010, $1,037,016,819 in State Fiscal Stabilization funds have been awarded to North Carolina.

_The following table demonstrates how the SFSF was distributed in North Carolina:

FY 2009 FY 2010 FY 2011
Dept. of Public Instruction             $379,668,352    $373,281,648   
UNC     $84,749,517     $137,815,944    $144,202,648   
Community College       $42,213,454                    
Education Total $126,962,971    $517,484,296    $517,484,296   
Administrative Office of Courts $66,585,556                    
Dept. of Correction             $12,926,135     $12,926,135    

Title I, Part A– Supporting Low-Income Schools:

_The ARRA provides $10 billion in additional Title I, Part A funds to state education agencies (SEAs) and local education agencies (LEAs) to support schools that have high concentrations of students from families that live in poverty.  These funds are provided to help improve teaching and learning for students most at risk of failing to meet state academic achievement standards.

_As of January 2010, $257,444,956 in Title I funds have been awarded to North Carolina.

IDEA Grants, Parts B & C – Improving Special Education Programs:

_The ARRA provides $12.2 billion in additional funding for Parts B and C of the Individuals with Disabilities Education Act (IDEA).  Part B of the IDEA provides funds to state educational agencies (SEAs) and local educational agencies (LEAs) to help them ensure that children with disabilities, including children aged three through five, have access to a free appropriate public education to meet each child's unique needs and prepare him or her for further education, employment, and independent living. Part C of  IDEA provides funds to each statewide system in charge of coordinating comprehensive, multidisciplinary interagency programs and makes early intervention services available to infants and toddlers with disabilities and their families.

_As of January 2010, $340,987,742 in IDEA funds have been awarded to North Carolina.

Education Technology Grants:

_The ARRA provides $650 million in additional funding for Education Technology Grants.  The primary goal of the Education Technology Grants program is to improve student academic achievement through the use of technology in schools. It is also designed to help each student become technologically literate by the end of eighth grade and to encourage the effective integration of technology with teacher training and curriculum development.

_As of January 2010, $16,337,364 in Education Technology Grants have been awarded to North Carolina.

Vocational Rehabilitation Funds:

_The ARRA provides $540 million in additional funding for the Vocational Rehabilitation (VR) State Grants program. The VR State Grants program provides grants to states to help individuals with disabilities, especially those individuals with the most significant disabilities, become a part of the workforce.

_As of January 2010, $18,029,008 in Vocational Rehabilitation Funds have been awarded to North Carolina.

Independent Living Services Fund:

_The ARRA provides $140 million in additional funding for the Independent Living (IL) programs. The IL programs support services to individuals with significant disabilities and older individuals who are blind.

_As of January 2010, $1,444,703 in Independent Living Services Funds have been awarded to North Carolina.

McKinney-Vento Homeless Assistance Funds:

_The ARRA provides $70 million under the McKinney-Vento Education for Homeless Children and Youth program to assist States and local educational agencies (LEAs) in addressing the educational and related needs of some of the most vulnerable members of our society – homeless children and youth – during a time of economic crisis in the United States.

_As of January 2010, $1,627,010 in McKinney-Vento Homeless Assistance funds have been awarded to North Carolina.

Pell Grant Funds:

_The ARRA provides $17.1 billion in additional funds for students across the country in need of Pell Grants. The Federal Pell Grant Program provides need-based grants to low-income undergraduate and certain post-baccalaureate students to promote access to postsecondary education. Students may use their grants at any one of approximately 5,400 participating postsecondary institutions. The additional funding allowed the Department of Education to raise the maximum Pell award from $4,731 to $5,350. 

_Pell Grants are awarded based on student applications, not by state.  As of January 2010, $207,035,879 in Pell Grants have been awarded to students attending colleges and universities in North Carolina.

Work Study Funds:

_The ARRA provides an additional $200 million to the Work-Study program, providing colleges and universities with additional funding to provide jobs to students to help with their college and living expenses. Work Study funds are distributed to qualifying schools which select students based on financial need.

_As of January 2010, $4,634,858 in Work Study funds have been awarded to students attending colleges and universities in North Carolina.

Race to the Top: $4 billion

_The ARRA provides $4 billion nationally for the Race to the Top Fund, a competitive grant program designed to encourage and reward States that are creating the conditions for education innovation and reform; achieving significant improvement in student outcomes, including making substantial gains in student achievement, closing achievement gaps, improving high school graduation rates, helping students prepare for success in college and careers, and planning in four core education reform areas: 

• Adopting standards and assessments that prepare students to succeed in college and the workplace and to compete in the global economy;
  
• Building data systems that measure student growth and success, and inform teachers and principals about how they can improve instruction;
  
• Recruiting, developing, rewarding, and retaining effective teachers and principals, especially where they are needed most; and
  
• Turning around our lowest-achieving schools.
  

_Race to the Top will reward States that have demonstrated success in raising student achievement and have the best plans to accelerate their reforms in the future. These States will offer models for others to follow and will spread the best reform ideas across their State and across the country.  The application was due January 19th, and North Carolina has submitted an application.  

Notes

_Faculty researchers from the University of North Carolina at Chapel Hill and Duke University have attracted an estimated $287 million from the American Recovery and Reinvestment Act (ARRA) to the benefit of the state of North Carolina. Since last March, UNC-CH faculty have received notifications from the National Institutes of Health (NIH), the National Science Foundation, the Department of Energy and other federal agencies about grants or awards that are expected to exceed $128.8 million over a three-year period – 258 individual UNC projects have been selected for funding so far. At Duke, the cumulative total value of 269 different faculty awards exceeds $159.1 million. These numbers reflect a high level of achievement in the nationwide competition for grants as part of the one-time federal package.

_Vladmir Pilat, the Prime Minister of Moldova visited North Carolina this week with a delegation of Members of his Parliament.  He and Lt. Governor Walter Dalton participated in a signing ceremony to renew the friendship agreement between the small nation and our state.  Participation between the two entities includes sharing information and practices on agriculture, military, and university studies.

_Celgard LLC, one of the largest suppliers in the battery industry, will invest $91 million to expand its Charlotte facility and build a new manufacturing plant in Concord. The company helps develop batteries for electric cars, and their investment will bring 289 jobs to North Carolina – 80 in Charlotte and 209 in Cabarrus County.