Stimulus funds for Metro schools frozen

Public school districts across the country are waiting for federal stimulus dollars to hit their coffers. Metro Nashville Public Schools may have a longer wait than most other Tennessee districts, due to years of being out of compliance with federal programs spending.

“They are temporarily frozen, but once we get that plan submitted and approved, it should clear everything up,” said Noelle Mashburn, a spokesperson for the district.

Stimulus dollars for education are coming through Title I, which supports students and schools meeting federal low-income guidelines, and students covered by the Individuals with Disabilities Education Act (IDEA). Official estimates and formal spending guidelines have not yet been released, but early estimates have indicated Metro stands to receive tens of millions of dollars through the stimulus package.

Federal Title I dollars intended for Metro have been frozen since December due to non-compliant spending on the part of MNPS. Most money that will reach schools through the federal stimulus package will flow through Title I, and until Metro resolves its federal spending troubles, Title I stimulus money will be frozen along with the rest. Other stimulus dollars – including IDEA funds – won’t be affected.

For Metro, this may mean a delay no longer than a few weeks, according to Tennessee Department of Education spokesperson Rachel Woods. The presence of new Director of Schools Jesse Register is a positive development, she added.

“Now that they have a new and responsive director of schools who’s going to make people implement the action plan [for compliance], we feel confident that they’ll come back with a timeline that’s reasonable for following all those steps we suggested and actually putting them in place,” Woods said. “As soon as we see that, well be able to release those frozen funds.”

Board of Education Chair David Fox said progress has been made at MNPS since the district’s federal programs office was reorganized almost a year ago, and that Register has worked hard to continue making changes in federal spending.

“I don’t know that he has any higher priority than getting that unit in proper working order,” Fox said. “It’s our expectation that we will make the improvements needed so that we can access all Title I funds, including those that come via the stimulus program.”

Federal Title I dollars can’t be used in place of local funds. But due to the exceptionally tight budget conditions school district leaders are currently facing, the use of stimulus dollars is an important part of ongoing budget discussions.

The budget process for the 2009-2010 school year is effectively suspended until school board members have more information about expected revenues. The process will be resumed as board members learn more about how much money will be received from the state and local government, as well as from the federal stimulus package.

District officials have said it’s looking likely that previously discussed cuts – which trim $15 million in expenditures, including the cutting of a net total of 209 school district staff positions – will have to take place.

Visit mnps.org and The City Paper’s Political Animals blog for more documents detailing proposed budget changes.