FEDERAL POLICY UPDATES

GFE provides monthly updates to ensure education grantmakers are aware of key federal policy developments, from education funding through the American Recovery and Reinvestment Act (ARRA) to reauthorization of the Elementary and Secondary Education Act (ESEA) and other pending legislation. For the latest federal policy developments, consult News to Use, an exclusive benefit sent directly to GFE members.

FEBRUARY 2010

Innovation and the i3 Fund

  Final guidance for the Investing in Innovation (i3) Fund is expected to be released in mid- to late February.

  The U.S. Department of Education (USED) has issued a call for peer reviewers to review the i3 proposals. Applications to serve as a peer reviewer are due by March 1.

  There are several collaborative funding opportunities for grantmakers interested in supporting educational innovation and leveraging the i3 Fund investments. The W. K. Kellogg Foundation is helping explore the creation of a collaborative rural fund that will pool philanthropic investments to support innovation in rural communities. For more information, please contact Ali Webb (ali.webb@wkkf.org). NewSchools Venture Fund is launching its fourth fund, the NewSchools Innovation Fund, to build entrepreneurial organizations that drive innovation on behalf of underserved students, through investments in people, schools (charter management and school turnaround organizations), and tools essential to improving public schools; contact April Chou (achou@newschools.org) for more information.

  The USED’s web-based portal for sharing education innovations is anticipated to launch later this month. The portal will connect educators and funders to promote collaboration in the development and scaling of educational innovations.

FY 2011 budget request/Elementary and Secondary Education Act (ESEA) reauthorization
President Obama released his FY2011 budget request, which contains some significant changes in funding for USED and prefigures key elements of ESEA reauthorization:
The President’s 2011 budget request for the USED proposes a 6.2% increase of discretionary spending, from $46.2 billion to $49.7 billion, against a backdrop of funding freezes for most other discretionary domestic programs.

  The proposal makes $1 billion of the increased funding contingent on reauthorization of the Elementary and Secondary Education Act (ESEA).

  The budget consolidates 38 USED programs into 11 funding streams organized around the administration’s key reform goals.

  The proposal includes $3 billion in new money for competitive programs, including $500 million for the i3 Fund (with $150 million focused on STEM education) and $1.35 billion to continue Race to the Top and expand the competition to school districts.

  The budget includes $3.85 billion for programs to strengthen teaching and school leadership, including a $2.5 billion district formula fund called the Effective Teachers and Leaders Grants.

  The New America Foundation has created a summary and analysis of the President’s education budget request.

  Among the proposed changes to the ESEA that the administration will seek when the act is reauthorized: replacing adequate yearly progress with a new metric that “gives a broader picture of school performance and looks at student growth and school progress.” The proposal would replace the 2014 universal proficiency deadline with a new goal for all students to leave high school ready for college or a career. It maintains flat funding for Title I grants to districts, which it renames “College-and-Career Ready Students.” The Title I School Improvement Grants, renamed the “School Turnaround Grants Program,” receive a proposed 65% increase to $900 million. The administration also has signaled plans to realign the $3 billion Title II teacher-quality state formula grants program, putting more preconditions on these grants, such as revamping teacher and principal evaluation systems.

State of the Union
  President Obama delivered his State of the Union address on Wednesday, January 27. In addition to calling on Congress to accelerate reauthorization of the ESEA, he urged the Congress to pass the Student Aid and Financial Responsibility Act (SAFRA). This act would eliminate federal subsidies to private lenders and apply the savings to expanding Pell Grants and establishing the American Graduation Initiative, College Access and Completion Fund, and Early Learning Challenge Fund. SAFRA is facing growing barriers to passage.

Other developments
  Forty states and the District of Columbia applied for the first round of the Race to the Top Fund. The 10 states that did not apply were: Alaska, Maryland, Maine, Mississippi, Montana, Nevada, North Dakota, Texas, Vermont and Washington. States that did not apply, and states that were unsuccessful in the first round, can compete in the second round of competition, scheduled for June. First-round finalists will be asked to send a team to Washington, DC, in March to present to the reviewers; points for these presentations will be part of the application’s final score. Secretary Duncan has said the number of winners in the first round will be determined by the quality of the proposals; there is no set number of awards that will be made for this round. All applications and feedback will be posted online for public review after the winners are announced.

  The National Governors Association and the Council of Chief State School Officers presented states with the second draft of English Language Arts and Mathematics K-12 Common Core State Standards in January. The public draft is scheduled for release in early February. Public feedback will be due on or around February 19, and the final draft will be released by the end of February or early March.

  ANALYSIS & RECOMMENDATIONS FOR ARRA FUNDS

View some of the best independent analyses, recommendations and other resources on uses of ARRA funds.

Additional information is available at Foundations for Education Excellence, a resource exchange helping grantmakers leverage federal education funds.