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Restrictions on ways school can spend stimulus money
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MONROE - Almost $800,000 in federal stimulus dollars intended to aid public education will be finding its way to Monroe public schools - with a few strings attached.

The Monroe district will receive $624,000 in Individuals with Disabilities Education Act (IDEA) funds and about $170,000 in Title 1 funding, Gov. Jim Doyle's office announced last month. The allocations are part of $366 million coming to Wisconsin schools in American Recovery and Reinvestment Act money. The money is intended to be used for special education and schools with a high percentage of low-income students and is part of the stimulus plan's almost $91 billion intended for education.

"During this tough time it is incredibly important we remain focused on our most basic principles, especially education," Doyle said in a news release. "Without this critical funding from the ARRA, we would have been looking at cutting school funding and laying off teachers."

It may not be as clear cut as that, however. As Ron Olson, business manager for the Monroe school district explained, the funding has restrictions on how it can be spent. The money can't be used to offset general budget expenses, he said.

The federal government wanted to get the money out to school districts as quickly as possible, so rather than develop separate parameters for how the money could be used, it channeled the money into two existing programs, Olson said.

Funding will flow through the IDEA Part B program, which supports special education and early academic and behavioral interventions, and Title 1 Part A, which supports services for economically disadvantaged students, according to Doyle's office. IDEA and Title 1 funding represents the two largest sources of federal money to the district, Olson said.

While receiving the money is definitely a positive for the district, the new funding will require careful consideration of how to best use it, Olson said.

The stipulations "kind of tie our hands," he said. The money must be used within these areas and can't offset shortfalls or additional spending in other budget areas. It can't, for example, be used to shore up school safety and security, which has been a concern for many in recent weeks in light of several threats in Monroe schools and an act of vandalism that caused school to be closed for a day.

It's also short-term money - funding is meant for the 2009-2010 school year but can be spent through the 2010-2011 school year. That means a school district such as Monroe "can't go out and add staffing positions that two years later you can't afford."

The district will need to look at the issue further and discuss its options. "We have to be cautious, and smart," Olson said.

The rules may be changing on stimulus money as time goes on, Olson predicted. "It's still early in game" for the stimulus allotments, he said. "We don't have a lot of guidelines, but every day there's more and more guidance" on how the money can be spent. "I'm hoping in there may be more."

For now, the district is taking a "bit of a wait-and-see" approach as it determines its next steps, Olson said. And regardless of any potential negatives, the money will benefit the district.

"We appreciate the money," Olson said. "We will find ways to use it."