Will the ARRA Improve Public Education in Texas?

The question of whether Texas students will be better off than they would have been without ARRA funds is driving a number of current debates as legislators are deciding how to budget for the upcoming biennium. Already, at least two letters have been sent to US Secretary of Education Arne Duncan—one from members of Texas' Congressional delegation and another from a number of school district superintendents—asking for more clarification on how Texas can spend ARRA funds allocated for education. Both of those letters express concern with how the Legislature has chosen to address the state's share of the money and asked the Secretary to issue further guidance that would direct the Legislature more clearly. The main issue causing dispute is the Legislature's handling of $3.2 billion meant to improve public education or, at the very least, ensure that the state is able to maintain its commitment to funding public schools. Of the billions of ARRA funds that were allocated to address shortfalls in school funding during the recession, it is this pot of money, known as State Fiscal Stabilization funds, that is raising the most questions from school districts. Their concerns stem from the Legislature's apparent intent to supplant rather than supplement current state revenue going to schools. Since Texas is not facing budget shortfalls as dire as some other states, it would have been able to maintain the level of funds going to schools across the state, even if it meant dipping into the state's substantial Rainy Day Fund. So, absent more stringent federal guidelines, that situation creates a choice for those legislators in charge of writing the state budget: pass the extra $3.2 billion down to school districts in addition to the state funds already going to education, or displace those state funds to be spent elsewhere or saved to avoid tapping the Rainy Day Fund. School districts and some legislators object to the latter option, as they would rather see the money be used to fund possibly transformative projects that go above and beyond what they would have been able to afford without the ARRA. Even as this and other debates continue, ARRA education funds are making their way to Texas already. (See below for an explanation of the three main allocations for education in the ARRA.)

Within the month, local school districts will see almost $1 billion in IDEA grants for special education and Title I grants to help poor students. The $3.2 billion in stabilization funds (which is actually $3.9 billion when a portion that is under the discretion of the Governor is included) that is raising so many questions will be available in a matter of weeks, as the Governor will be apply to apply for the initial two-thirds of the total allotment. The final third will be disbursed later this summer, and how we handle this first part could determine whether we receive the final portion after all, according to guidelines published by the Department of Education.