American Recovery and Reinvestment Act (ARRA)
State Fiscal Stabilization Funds (SFSF)
October 2009

Program Description: The State Fiscal Stabilization Fund (SFSF) program is a one-time appropriation of $53.6 billion under the American Recovery and Reinvestment Act of 2009 (ARRA). These funds will help stabilize state and local government budgets in order to minimize and avoid reductions in education and other essential public services. The program will help ensure that local educational agencies (LEAs) and public institutions of higher education (IHEs) have the resources to avert cuts and retain teachers and professors. The program may also help support the modernization, renovation, and repair of school and college facilities. For an overview of the federal State Fiscal Stabilization Fund Program select this link: http://www.ed.gov/policy/gen/leg/recovery/factsheet/stabilization-fund.html.

2009-10 School Fiscal Year and Wisconsin School Districts

• There are many details that remain unknown at this time regarding the receipt and use of State Fiscal Stabilization Funds (SFSF) for the 2009-10 school fiscal year. However, districts should assume that they will be receiving State Fiscal Stabilization Fund revenue in this fiscal year.

• It is anticipated that school districts will receive stabilization fund revenue for the 2009-10 school fiscal year in the amount of $236,722,000. The state will make application for these funds once the federal application guidelines have been published by the federal Department of Education.

• It is also anticipated that the stabilization fund revenue will again replace a portion of school district’s general equalization aid eligibility. Districts can view an estimated portion of their general equalization aid eligibility that will be stabilization fund revenue at (2009-10) http://www.dpi.wi.gov/sfs/xls/2009-2010_Fiscal_Stabilization_Payment.xls.

• School districts will be required to document their use of the stabilization fund revenue. Districts will again code the revenue to WUFAR Source 718 and should code expenditures to WUFAR Project Code 810. Since the federal application guidelines are unavailable at this time, it is unknown what expenditures will be allowable in the use of this revenue. However, districts were allowed to use the 2008-09 stabilization fund revenue for most expenditures related to general school operations.

• School districts will most likely receive the stabilization revenue on March 22, 2010 or June 21, 2010. These are the general equalization aid payment dates.

• Depending upon the payment date, districts will again be required to complete a jobs/vendor survey as part of the quarterly reporting of ARRA funds.

• This website will be updated as new information becomes available.

2008-09 School Fiscal Year and Wisconsin School Districts

• School districts received State Fiscal Stabilization Fund (SFSF) revenue on June 15, 2009. Total amount disbursed to districts equaled $552,278,000.

• The federal revenue districts received replaced a portion of each district’s general equalization aid eligibility. The amount by district can be viewed at: (2008-09) http://www.dpi.wi.gov/sfs/xls/2008-2009_June_15th_Stabilization_Payments.xls.

• School districts received stabilization aid from two federal fund sources: SFSF – Education Grants and SFSF – Government Services. Districts coded this revenue to Source 718.

• School districts were required to submit the following assurances document: http://www.dpi.wi.gov/sfs/doc/listserve345_5-22-09.doc.

• Districts completed a jobs/vendor survey for both the SFSF Education Grants and Governments Services revenue in October of 2009 with the data forwarded to the Wisconsin Office of Recovery and Reinvestment at http://www.recovery.wisconsin.gov/.

Program Contact:

David Carlson, Director
School Financial Service Team
Department of Public Instruction

Tel: (608) 266 6968
E-mail: david.carlson@dpi.wi.gov

For questions about this information, contact dpifin@dpi.wi.gov (608) 267-9114

Last updated on 10/29/2009 8:37:06 AM