As school administrators across the nation grapple with budget cuts due to the ongoing economic downturn, Greg Murry, the superintendent of this 9,000-student district, faces a unique challenge: how to effectively utilize a windfall of up to $7 million in economic-stimulus money within a limited time frame. Unlike other states, the American Recovery and Reinvestment Act passed by Congress last February presented Arkansas with a rare opportunity to make long-term investments in student outcomes instead of simply patching budget holes.
Conway, located about 30 minutes away from Little Rock, is determined to maximize the impact of the federal aid it has received without making unsustainable spending commitments. The infusion of funds from the stimulus package offers the district a chance to make lasting investments in student achievement. However, there is concern about the future sustainability of these investments once the stimulus money runs out.
"We want to ensure that the money given to us by our patrons is not wasted," said Mr. Murry. "Our focus is on using it to improve student achievement." The $787 billion recovery act has allocated up to $100 billion in one-time funding for education to state budgets without considering the extent to which each state has been affected by the economic downturn.
The main component of the stimulus package designed to stabilize education funding is the State Fiscal Stabilization Fund, which allocated $48.6 billion to states based on population rather than need. The primary purpose of this fund was to offset cuts to K-12 and higher education budgets. However, Arkansas, which received $443 million in stabilization aid, did not have any K-12 cuts to restore. In fact, the state has increased funding for public schools by approximately $700 million in recent years, partially due to new legislation resulting from a school finance lawsuit.
As a result, around $341 million in state stabilization funds were designated to flow to Arkansas districts through the Title I formula, which provides aid to disadvantaged students, after the state filled a minor cut in higher education. Due to slower-than-expected revenue growth this year, districts were cautioned against spending their second allocation of $119 million in stabilization funds until it is certain that there will be no need for budget cuts. In addition to the stabilization funds, Arkansas received an unprecedented increase of $106 million in Title I grants and $112 million in new funding for students in special education through the stimulus law.
Districts have the flexibility to use their state stabilization funds for activities authorized under four major federal laws, including the Elementary and Secondary Education Act, the Individuals with Disabilities Education Act, the law governing career and technical education, and the law addressing adult and family literacy. The funds can also be used for facility renovations and repairs.
Arkansas districts have taken advantage of these options. State officials have advised districts, including Conway, not to hire permanent employees with stimulus funds unless there is a plan to sustain those positions beyond the availability of federal dollars. The emphasis has been on targeting the money towards programs that will have a lasting impact on student outcomes. "The biggest challenge was getting districts to see the bigger picture: that these funds could significantly influence student achievement," said Tom W. Kimbrell, the state commissioner of education, who assumed his role in late September.
Focused Funding
When Arkansas districts submitted their plans for stimulus spending to the state, they were required to outline the education redesign objectives that would be accomplished with each expenditure, even if they were requesting funds for restroom renovations. Applications from districts that lacked specificity were returned, and districts that planned to hire new staff members had to provide an explanation of how they would sustain these employees after the stimulus funds were depleted. Districts without a clear funding plan were denied.
The majority of Arkansas’ fiscal-stabilization funds were allocated to school facilities, with a particular focus on renovation and modernization projects such as new science labs and school expansions. According to Mr. Kimbrell, this allocation was intended to avoid initiating new programs that could not be sustained once the funding expires next year.
In the Conway district, the bulk of the up to $4 million in fiscal-stabilization funds will be allocated towards facility improvements. Some projects have already been completed, such as replacing the old wooden lockers at Carl Stuart Middle School with new metal ones and installing new doors to prevent break-ins. Additionally, classrooms across the district received new paint jobs, schools had their floors and ceilings upgraded, and light fixtures were replaced with more environmentally friendly models. The HVAC systems were retrofitted, allowing the district to save on future energy costs. Sinks and toilets in the restrooms, including those in Joy Bateman’s 1st grade classroom at Sallie Cone Elementary School, were replaced with newer fixtures that are less prone to clogging. Superintendent Murry jokingly referred to these improvements as "lipstick," but emphasized that students, teachers, and the community have all noted the positive changes.
One project that Superintendent Murry is particularly proud of is a summer enrichment program for struggling students in grades K-4, which was financed using a portion of Conway’s over $1 million in additional Title I funds. The district plans to continue operating this program for the next two summers, with even more students participating. If the program proves successful, Mr. Murry hopes to find funding to continue it after most of the stimulus funding has ended.
Conway also utilized a portion of its extra Title I aid for professional development. Coaches from the University of Arkansas at Little Rock were brought in to assist teachers at an elementary school with their literacy program. This partnership allowed teachers to observe and provide feedback on each other’s lessons, as well as provided time for collaborative planning. Other Arkansas districts chose to invest their Title I funds in technology, such as student-responder systems, and provided training to teachers on how to effectively use these tools. In rural areas, some districts focused on distance learning initiatives. Conway, on the other hand, developed partnerships with universities and school improvement specialists, and implemented the state’s new differentiated accountability plan.
A portion of the stimulus money in Arkansas was allocated towards teacher salaries, particularly in rural parts of the state. These funds were used for recruitment and retention programs aimed at attracting and keeping highly qualified teachers. State officials encouraged districts to consider tying teacher bonuses, at least in part, to student outcomes, and some districts followed this guidance. The guidelines for the $4 billion Race to the Top Fund grant competition also promote such pay plans.
Furthermore, districts received a substantial increase in special education funding, which was mainly allocated towards ensuring compliance with the Americans with Disabilities Act guidelines and investing in technology, including computer-based assessments for special-needs students and interactive classroom whiteboards.
"We were absolutely determined to ensure that we were not simply wasting money on something that was not wise," stated Ms. Vann. "Believe me, we did everything necessary to ensure that this was benefiting our children."
