ED Sets Deadline for State Fiscal Stabilization Funds

In a Federal Register notice published today, the Department of Education established the deadline for states that have not yet submitted their applications for the State Fiscal Stabilization Fund formula grants. To date, ED has accepted and approved applications from 13 states; states that have not yet applied have until 4:30 p.m. on July 1, 2009, to do so.

Roughly 80 percent of State Fiscal Stabilization Fund — known as the Education Stabilization Fund — will go directly to school districts to shore up school budget deficits and mitigate the need for teacher layoffs. The remainder, the Government Services Fund, may be used by states for “public safety and other government services,” effectively allowing grantees to allocate funds according to their respective budget needs.

ED will award grants for both the Education Stabilization Fund and the Government Services Fund in two phases, with 67 percent distributed in Phase I. In order to qualify for Phase I and Phase II funding, all states must meet the July 1 application deadline.