A new research study conducted by Education Northwest finds that federal stimulus money has been a crucial funding source for Idaho’s public school districts, helping the state weather the economic recession during the 2009–2010 school year. However, the report also finds that Idaho districts are bracing for a “funding cliff,” as money from the American Recovery and Reinvestment Act (ARRA) of 2009 runs out.

Based on an extensive survey of district-level staff members, the report is the first phase of a three-phase study commissioned by the Idaho State Department of Education (ISDE) in 2009 to evaluate how ARRA funds have been used by school districts in the state. In 2009 Idaho received more than $280 million in stimulus funds for education, including $35 million for Title I programs (for students of families that live in poverty) and $58 million for the Individuals with Disabilities Education Act (IDEA) program. The majority of the funds, $180 million, went to the State Fiscal Stabilization Fund, which was intended to address budget shortfalls and to “backfill” education budget cuts.

The first report looks at how Idaho districts have used the Title I and IDEA portions of the stimulus funds. Education Northwest researchers surveyed district staff members in charge of these programs in 123 Idaho school districts, with a 69 percent response rate.

Based on the survey, 79 percent of Idaho’s Title I and IDEA funds were spent on personnel, most often to pay the salaries and benefits of teachers, paraprofessionals, and other staff. As the study points out, this aligns with the first principle stated in the ARRA: to create and save jobs. Virtually all the staff members surveyed (95 percent) agreed that the ARRA funds had been crucial to their district, while 92 percent agreed that those funds would also have a positive impact on school reform and student achievement.

According to the study, another major principle of the Recovery Act—that stimulus funds be invested in one-time expenditures that would not require ongoing funding—has not been met. Because most Title I and IDEA funds have been spent on personnel, an ongoing expense, Idaho school districts are anticipating a “funding cliff” after December 31, 2011, the date by which all stimulus funds must be spent. Only 1 in 10 LEAs surveyed believed such a funding cliff had been avoided, while 46 percent said it had not been avoided at all.

Kari Nelsestuen, lead author of the study, says ISDE will benefit from taking a close look at the details of how the stimulus money has been spent. “While the federal government is tracking overall spending, this study provides many more of the nitty-gritty details,” says Nelsestuen. “I don’t know of any other state department of education that is looking this closely at their own spending practices. We hope our analysis will help stakeholders better understand and improve education programs in Idaho.”