Stabilization Fund State Application Resolves Many Questions About Local Allocations

Washington, March 19 —The U.S. Department of Education (ED) has posted draft state application materials for the state budget stabilization funds contained in the new stimulus package.

These application materials have been submitted to the Office of Management and Budget (OMB), which must approve them before they can be transmitted to states. ED has asked OMB to approve them by March 23 so they can be sent out promptly.

The application materials focus entirely on data that must be submitted by states. The stimulus legislation — the American Recovery and Reinvestment Act — requires states to explain how they will allocate the money among education and other purposes, as well as how they will split the education funds between K-12 and postsecondary institutions.

Numerous critical questions are addressed by the draft application.