Norwalk Looks to Redirect Excess Stimulus Funds Meant for Disabled Students

Norwalk school officials are trying to save the jobs of two elementary school principals whose positions were eliminated in the recent budget cuts by trying to redirect Federal stimulus money that was originally meant to for disabled children.

In his Friday Report distributed to members of the Board of Education and the general public outgoing Superintendent Sal Corda wrote:

As we shared at the Board meeting, we have been advised by the State Education Department that they will consider our request for the use of 50% of the Maintenance of Effort (MOE) Funds pending their review of all files of students who in 2006/07 or 2007/08,were classified as LD [Learning Disabled] or ED [Emotionally Disturbed] to ensure that all issues of non-compliance have been addressed. We are reviewing 193 files in anticipation of an audit of the State Education Department on August 20, 2009.

Should we meet the expectations of the State, approximately $200-$250,000 in operating budget monies would become available for general purposes. I am recommending in the strongest possible terms that the most effective use of these dollars, in order to positively impact student achievement, would be to restore elementary assistant principals to full time positions in all schools.

Norwalk is hardly alone in trying to use stimulus fund to plug up budget holes. USA Today reported last month that nationally many states and school districts are trying to find creative solutions using Federal stimulus money to plug budget holes.

But what does all this mean?

Like other school districts in Connecticut, Norwalk receives money to educate disabled children from many sources including the Individuals with Disabilities Education Act (IDEA). IDEA money comes with strings attached -- a Maintenance of Effort (MOE) provision which requires a school district to spend the same amount for special education and related services as it spent in the previous fiscal year. If it doesn't then the school district has to repay the Federal Government.

As part of the American Recovery and Reinvestment Act of 2009 (ARRA), President Barack Obama’s economic stimulus plan, nearly $11.3 billion in additional funds was allocated to Part B of IDEA which provides funds to state and local educational agencies. Connecticut will receive approximately $133 million in IDEA money. Norwalk’s share is expected to be $2.2 million according to Dept. of Education estimates published in March.

However, according to the regulations which govern the IDEA program monies are to “be used only to pay the excess costs of providing special education and related services to children with disabilities,” and “They shall be used to supplement State, local, and other Federal funds and not to supplant such funds”

There is a loophole, however. Under the regulations if Norwalk gets more money from IDEA than it received last year it can take 50% of the excess money and spend it any way it likes. In Norwalk’s case that would be the $200-$250,000 referred to by Dr. Corda.

But there’s a problem with this plan. Norwalk can only spend the excess money, and effectively reduce its MOE, if it has been in compliance with certain requirements of IDEA.

Based on data from the 2007-2008 school year the Dept of Education found in its Annual Performance Report on Connecticut’s State Performance Plan that the Norwalk School District did not meet the performance requirements set by IDEA and was rated the District “Needs Assistance.” 35 other school districts in Connecticut were not in compliance.

Each year the Department of Education conducts an assessment of every school district looking at factors such as whether “the district has disproportionate representation of racial and ethnic groups in special education and related services that is the result of inappropriate identification.” Based on a statistical analysis Norwalk was found to have a problem in this area.

It seems that by having the Dept. of Education audit the files of learning disabled children Norwalk schools are trying to achieve compliance retroactively and become eligible to use part of the money to save assistant principal jobs.