Retaining educators

(a)

Education jobs fund

There is appropriated, for fiscal year 2010, for necessary expenses for an Education Jobs Fund, $23,000,000,000. Such amount shall be appropriated, out of any money in the Treasury not otherwise appropriated, for the Department of Education. The amount shall remain available for obligation by the Department through the date that is 180 days after the date of enactment of this Act. The amount shall be administered by the Secretary of Education under the terms and conditions of titles XIV and XV of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5), subject to the provisions of subsection (b). (b)

Special rules

(1)

Allotments to States and outlying areas

The funds appropriated under this Act shall be available only for allocations by the Secretary of Education under subsections (a) and (d) of section 14001 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5), except that the Secretary may reserve not more than $1,000,000 for administration and oversight of this Act, including for program administration. (2)

Reservation by State

With respect to funds appropriated under this Act, a State that receives an allocation of such funds in accordance with section 14001(d) of such Act may reserve a total of not more than 5 percent of the State's allocation for— (A)the administrative costs of carrying out the State's responsibilities with respect to such funds, except that in no case shall the State reserve more than 1 percent of its total allocation for those costs; and (B)the costs of retaining or creating positions in the State educational agency or the State agency for higher education, and other State agency positions related to the administration or support of early childhood, elementary, secondary, or postsecondary education. (3)

Awards to local educational agencies and public institutions of higher education

(A)

Use of funds

Subsections (a) and (b) of section 14002 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) shall not apply to an allocation of funds appropriated under this Act. Except as provided under paragraph (2), an allocation of such funds shall be used only for awards to local educational agencies and public institutions of higher education for the support of early childhood, elementary, secondary, and postsecondary education in accordance with subparagraph (B). (B)

Distribution by governor

(i)

In general

The Governor of a State receiving an allocation of funds appropriated under this Act shall use the appropriated funds to award grants to local educational agencies (through the State’s primary elementary and secondary funding formulae) and public institutions of higher education in order to restore the reductions in State funding for elementary and secondary education and for public institutions of higher education, respectively, that remain for fiscal years 2010 and 2011, as determined in accordance with clause (iv). (ii)

Insufficient amount

(I)

In general

In the case of a State that receives an allocation of funds appropriated under this Act for a fiscal year that is less than the amount necessary to carry out clause (i), the Governor of the State shall distribute the State's allocation for such fiscal year between local educational agencies (through the State’s primary elementary and secondary funding formulae) and public institutions of higher education in proportion to the relative reductions in State support for these two categories of education for such fiscal year. (II)

Exception

The Governor may adjust the amount of funds awarded to local educational agencies (in the aggregate) and the amount of funds awarded to public institutions of higher education (in the aggregate) for a fiscal year pursuant to subclause (I) by increasing or decreasing such amounts of funds by the amount that is not more than 10 percent of the larger of the 2 amounts of funds. (iii)

Distribution of excess amount

In the case of a State that receives an allocation of funds appropriated under this Act that is more than the amount necessary to carry out clause (i), the Governor of the State shall use any funds remaining after the application of clause (i) to provide local educational agencies in the State with awards, based on the local educational agencies' relative shares of funds under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for the most recent fiscal year for which data are available. (iv)

Calculation of reductions

For purposes of calculating reductions in State funding under this subparagraph for a fiscal year— (I)the amount of reductions in State funding for elementary and secondary education or for public institutions of higher education for a fiscal year shall be determined by comparing the level of such State funding for such fiscal year with the level of such State funding for the preceding fiscal year; and (II)the levels of such State funding shall include any funds received by the State under section 14001(d) of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) and, for fiscal year 2011, any funds received by the State under this section for fiscal year 2010. (4)

Inapplicability of education reform assurances

Subsection (b), and paragraphs (2) through (5) of subsection (d), of section 14005 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) shall not apply to any application for an allocation of funds appropriated under this Act from a State that has an approved application for Phase II of the State Fiscal Stabilization Fund under title XIV of division A of such Act that was submitted in accordance with the application notice published in the Federal Register on November 17, 2009 (74 Fed. Reg. 59142). (5)

Requirement to use funds to retain or create education jobs

Notwithstanding sections 14003(a) and 14004(a) of such Act, funds appropriated under this Act may be used only for— (A)compensation and benefits and other expenses necessary to retain existing employees, and for the hiring of new employees, in order to provide early childhood, elementary, secondary, or postsecondary educational and related services; or (B)on-the-job training activities, as defined in section 101(31) of the Workforce Investment Act of 1998 (29 U.S.C. 2801(31)), for education-related careers. (6)

Prohibition on use of funds for rainy day funds or debt retirement

(A)

In general

Subject to subparagraph (B), a State that receives an allocation of funds appropriated under this Act may not use such funds to— (i)establish, restore, or supplement a reserve or rainy day fund of the State or to supplant State funds in a manner that has the effect of establishing, restoring, or supplementing a reserve or rainy day fund; or (ii)reduce or retire debt obligations incurred by the State or to supplant State funds in a manner that has the effect of reducing or retiring debt obligations incurred by the State. (B)

Exception

Subparagraph (A) shall not apply to fund balances that are necessary to comply with any State requirement to maintain a balanced budget. (7)

Application considerations

If, by a date set by the Secretary of Education, a Governor has not submitted an approvable application under section 14005(a) of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5), the Secretary may provide for the distribution of funds appropriated under this Act that are allocated under section 14001(d) of the American Recovery and Reinvestment Act of 2009 for the State to 1 or more other entities in the State, in such amounts and under such terms and conditions as the Secretary may establish, as long as all terms and conditions that apply to the appropriation under this Act shall apply to such funds distributed to such entity or entities. (8)

Local educational agency application

The requirements of section 442 of the General Education Provisions Act (20 U.S.C. 1232e) shall not apply to a local educational agency that has previously submitted an application to the State under title XIV of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) and wishes to receive funds appropriated under this Act, as the assurances provided under the previous application shall continue to apply to funds awarded under this Act. (9)

Maintenance of effort

(A)

In general

In order for a State to receive an allocation of funds appropriated under this Act, the Governor of a State shall, in lieu of the assurances required under section 14005(d)(1) of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5), provide assurances to the Secretary of Education that, for each of fiscal years 2010 and 2011, the State will— (i)meet the requirements of section 14005(d)(1) for such fiscal year; or (ii)provide, for elementary and secondary education and for public institutions of higher education (not including support for capital projects or for research and development or tuition and fees paid by students), percentages of the total revenues available to the State for each fiscal year that— (I)for fiscal year 2010, are not less than such percentages, respectively, for fiscal year 2006; and (II)for fiscal year 2011, are not less than such percentages, respectively, for fiscal year 2009. (B)

Inapplicable requirement

Section 14012(c) of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) shall not apply with respect to any allocations made for fiscal year 2011 from funds appropriated under this Act. (10)

Period for obligation of funds

The Secretary of Education may extend the period of time available to States and recipients of awards under this section to obligate the funds appropriated under this Act for one additional fiscal year beyond the period provided for under section 421(b)(1) of the General Education Provisions Act (20 U.S.C. 1225(b)(1)).