Nebraska Gov. Heineman Outlines Plan for Use of Education Stimulus Dollars

March 25, 2009 -- (Lincoln Neb.) -- Nebraska Governor Dave Heineman today outlined a proposal to distribute federal American Recovery and Reinvestment Act (ARRA) funding to Nebraska’s K-12 schools. The plan is supported by incoming Nebraska Commissioner of Education Roger Breed and other state education leaders.

The Governor proposes allocating the $375 million in ARRA funds Nebraska is expected to receive toward funding for K-12 schools over the next two years. An anticipated $234 million in fiscal stabilization funding would be applied to the state aid to education formula. Nebraska is also receiving an estimated $80 million in stimulus funds for special education programs and an estimated $61 million for Title I schools.

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“We expect Nebraska’s schools will be the single largest recipient of stimulus funding,” Gov. Heineman said. “However, it is important to remember that stimulus money is one-time funding. This funding will disappear in two years. It is possible that the economic slowdown could last three to four years. As a result, it is important for school districts to develop a four-year plan of action for the funding of their schools.”

Breed said, “The use of fiscal stabilization funding for state aid will avoid wholesale teacher and support staff layoffs and provide stability to school districts’ general fund budgets.”

The proposal for using stimulus funding is also supported by the leaders of the state’s largest education organizations, including the Nebraska Association of School Boards, the Nebraska Council of School Administrators and the Nebraska State Education Association.

Source: Nebraska Governor