Wyoming and the Education Jobs Fund

In August of 2010, President Obama signed into law the Education Jobs Fund, a $10 billion in grant aid to help state governments prevent K-12 teacher layoffs. State governments had to submit applications for the funds by September 9, 2010, and most applied immediately with two exceptions – Wyoming and South Carolina. South Carolina was not eligible for the funds in the first place because it had made cuts in its higher education budget last year.[1] Wyoming Governor Dave Freudenthal decided not to apply for the funds even though his state was eligible, because he did not believe the state had laid off enough teachers to justify the funds. Additionally, the U.S. Department of Education (ED) turned down the Governor’s request to use the funds for school construction projects. Then, on October 6, 2010, Wyoming submitted its application for the funds to the U.S. Department of Education (ED) with the Governor’s signature on it, and ED has obligated $17.5 billion in Education Jobs Funds to the state. What happened?

According to guidance released by the U.S. Department of Education, if a governor declines Education Jobs Funds, ED will distribute the funds to school districts via another state entity. In Wyoming’s case, the Department of Public Instruction stepped up to the plate and volunteered to administer the program.

Wyoming’s Department of Public Instruction (DPI) submitted the Education Jobs Fund to the U.S. Department of Education after ED agreed to work with DPI officials to submit the necessary materials and ensure a smooth roll out of funds. In turn, Governor Freudenthal signed the maintenance of effort assurance part of the application, guaranteeing that Wyoming will maintain certain levels of K-12 and higher education spending in the coming fiscal years. It appears that there is no animosity between DPI and the Governor’s office surrounding this Education Jobs Fund process.

School districts had to submit letters of intent to apply for the funds to the DPI by October 15, 2010 so officials could reallocate any funds that districts did not want. Once Wyoming has determined which school districts are interested in the Education Jobs Fund monies and has recalculated allocations to school districts accordingly, the state will distribute an actual application to school districts. After individual district applications are approved, school districts will begin to draw down funds. Though the funds will reach Wyoming school districts later than most districts across the country, the funds will be available through the end of fiscal year 2012. In the end, the distribution of Education Jobs Funds in Wyoming will be the same as if the Governor had signed off on the funds from the very beginning.

Check back with Ed Money Watch for more news on the Education Jobs Fund as it is distributed to school districts.