The State Fiscal Stabilization Fund (SFSF) program is a new one-time appropriation of $53.6 billion under the American Recovery and Reinvestment Act of 2009 (ARRA). Of the amount appropriated, the U.S. Department of Education will award governors approximately $48.6 billion by formula under the SFSF program in exchange for a commitment to advance essential education reforms to benefit students from early learning through post-secondary education, including:

• college- and career-ready standards and high-quality, valid and reliable assessments for all students;
• development and use of prekindergarten through post-secondary and career data systems;
• increasing teacher effectiveness and ensuring an equitable distribution of qualified teachers; and
• turning around the lowest-performing schools.

These funds will help stabilize state and local government budgets in order to minimize and avoid reductions in education and other essential public services. The program will help ensure that local educational agencies (LEAs) and public institutions of higher education (IHEs) have the resources to avert cuts and retain teachers and professors. The program may also help support the modernization, renovation, and repair of school and college facilities. In addition, the law provides governors with significant resources to support education (including school modernization, renovation and repair), public safety, and other government services.

Connecticut is slated to receive approximately $541 million. State receipt of these funds is contingent upon maintenance of effort of support for elementary, secondary and post-secondary education for fiscal years 2009, 2010 and 2011.

The SFSF will be proportionately applied to each town’s Education Cost Sharing (ECS) grant. Under the Governor’s proposed FY2010 – FY2011 biennial budget, towns’ ECS grants will remain at the 2008-09 level.

Also pursuant to the Governor’s proposed biennial budget, one-half of the SFSF is to be used in each year of the biennium, representing approximately 14 percent of the ECS grant ($271 million / $1.9 billion).

LEAs will be required to make application to the State Department of Education for the funds, and each municipality’s share will be sent directly to the school district – or a municipal account designated for the school district. Each district will be charged with documenting the uses of the SFSF dollars in a separate account. Municipalities may not appropriate any of the SFSF funds for municipal expenses.

Application Information

Application Instructions: Local Education Agency Instructions

Application: Online Application and Assurances

Application Deadline:August 14, 2009

Entitlement Amounts:

Guidance Information

Approved State Application for the State Fiscal Stabilization Funds

Federal Guidance 

FAQ's

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