FAQs

FAQs About the Federal Reductions for 2013 and Beyond


FAQs About the Federal Reductions for 2013 and Beyond

    What are the reductions to federal education programs?

    At the federal level, most education programs for federal fiscal year 2013 are funded at approximately 5.2 percent less than federal fiscal year 2012. This includes 1) a 5 percent reduction by “sequester” and 2) a 0.2 percent across the board reduction for all programs required by the continuing resolution approved on March 1, 2013.

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    Are the percentage reductions at the federal level the same for the state and local levels?

    No. While the “sequester “and the continuing resolution reduce the U.S. Department of Education spending on programs for federal fiscal year 2013 by 5.2 percent compared to federal fiscal year 2012, the amount that states and districts receive will be more or less depending on the specificity of the federal statute and/or formula factors. For example, certain federal statutes and provisions prohibit reducing a state, district's or territory’s (i.e. hold-harmless) allocation. Furthermore, update census and poverty data will change the percentage that states and districts receive annually.

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    When are the federal fiscal year 2013 funds available to schools?

    The federal fiscal year 2013 funds are available to schools on July 1, 2013. July 1, 2013, is the start of the state fiscal year 2014 and the start of the school year 2013-2014.

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    What federal programs are subject to reductions?

    The 5 percent sequester reduction impacts nearly all U.S. Department of Education programs. The continuing resolution’s 0.2 percent applies to all federal programs. The 5 percent sequester reduction will be applied to the following programs: Title I; School Improvement; Migrant Education; Neglected and Delinquent; Teacher Quality; Math and Science Partnerships; 21ST Century Learning; State Assessments; Rural and Low-Income; English Language Acquisition; Homeless Children; IDEA and Preschool IDEA.

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    Do the reductions impact competitive grants like Race to the Top?

    No. Grants that were awarded prior to federal fiscal year 2013 will not be reduced. The U.S. Department of Education also has  noted that they will attempt to pare back new grants rather than reduce or cut continuation grants.

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    How much of the federal awards go to school districts?

    Typically over 98 percent of the federal funds go to school districts (or other sub-recipients), but the amount of the federal award that goes directly to sub-recipients depends on the specifics of the federal program. Most programs allow for a specific percentage for state administration and other programs allow for a certain percentage for set asides such as state-level projects. For example, the Title I program requires 4 percent for school improvement.  

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    Have school districts received their allocations?

    Yes. While the federal awards have been delayed, states have been provided with preliminary amounts in order to make school district allocations. The Ohio Department of Education has already provided preliminary allocations to the school districts.

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    Do the reductions change compliance issues?

    No. The “sequester” only reduced the amount of funding provided for the programs. The underlying statutes or rules for the programs remain. That includes the process for distributing and allocating funds, maintenance of effort, time periods for use of funds, supplement-not-supplant, hold-harmless and reservation of funds.

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    Is the department providing any resources to help mitigate the school district federal cuts?

    The Ohio Department of Education recognizes that the federal reductions for school year 2013-14 may require difficult decisions for school districts regarding the level of staffing, services and reform efforts. While the state also will be impacted by the federal reductions, the department is reviewing all administrative and set-aside funds for possible assistance to school districts. The department plans to reallocate $19 million in previously awarded (but undrawn) Title I and IDEA funds. The department  identified $8 million Title I funds from closed community schools that will be reallocated to the resident traditional districts. In addition, the department  identified $11 million of IDEA state special project funds which can be allocated to school districts via their federal formulas.

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    How are these reductions going to impact school districts' personnel and services to students?

    The Ohio Department of Education does not have data regarding how the potential reductions may impact individual school districts. Each school district has unique needs and will make their own determinations on staffing, services and reform efforts aligned to the particular federal grant. Should school districts receive less federal resources in a particular year, they will need to make the necessary adjustments they see fit to keep their district solvent. It should be noted that typically, school districts carry over a percentage of their federal program funds to address potential federal allocation shifts.  

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Last Modified: 7/1/2013 12:20:14 PM