Office of the Governor

The State Fiscal Stabilization Fund program is a one-time appropriation of $48.6 billion that the U.S. Department of Education awarded to Governors to help stabilize State and local budgets in order to minimize and avoid reductions in education and other essential services, in exchange  for a State’s commitment to advance essential education reform in four areas: (1) making improvements in teacher effectiveness and in the equitable distribution of qualified teachers for all students, particularly students who are most in need;(2) establishing pre-K-to-college-and-career data systems that track progress and foster continuous improvement; (3) making progress toward rigorous college and career ready standards and high-quality assessments that are valid and reliable for all students, including limited English proficient students and students with disabilities; and (4) providing targeted, intensive support and effective interventions for the lowest-performing schools.  

The two components of the Stabilization program are the Education Stabilization Fund and the Government Services Fund.  By statute, the U.S. Department of Education will award 81.1% of a State’s total stabilization formula allocation under the Education Stabilization Fund and the remaining 18.2% of its allocation under the Government Services Fund.  The award is made directly to the Governor of each State.

Hawaii’s formula allocation is $192,178,168:
Education Stabilization (Part A) – 81.8% or $157,201,741
Government Services (Part B) – 18.2% or $34,976,427

The Governor of each State was required to submit an application to the U.S. Department of Education.  In the application each State was asked to ensure compliance with section 1111(b)(3) of the Elementary and Secondary Education Act (ESEA) regarding improving assessments and teacher effectiveness.  Each State was also asked to ensure compliance with sections (3)(C)(ix) and (6) of section 1111(b) of the ESEA and section 612 (a)(16) of the Individuals with Disabilities Education Act (IDEA) related to the inclusion of children with disabilities and limited English proficient students.  Additionally, each State was asked to take steps to improve State academic content standards and student academic achievement standards consistent with section 6401(e) of the America Competes Act.  Finally, each State was asked to ensure compliance with section 1116 of the ESEA with respect to struggling schools.

Pursuant to Memorandum of Agreement (MOA) between the Governor of the State of Hawaii, the Department of Education, and the University of Hawaii, and the Memorandum of Agreement (MOA) between the Governor of the State of Hawaii and the Charter School Administrative Office, the selected activities will better align education, workforce development and economic development policies.  Further to the MOAs, the activities will create a framework for future cooperation between the parties on a common reform agenda to dramatically improve student achievement and outcomes in Hawaii’s public education systems over the next eight years.

With the assistance of the Department of Budget and Finance and the Department of General Services, a payment and drawdown procedures manual was prepared to track that funds are used for authorized purposes within the prescribed period of time and that expenditures abide by the reporting and transparency obligations set forth in ARRA.

Awards

ARRA Recovery Team