Stimulus Package and You

03/03/2009

When I was young I admired clever people. Now that I am old I admire kind people.
Abraham Joshua Heschel

In ExchangeEveryDay for February 17, "Child Care Survives Stimulus Debate," we reported on the early childhood funding included in the American Recovery and Reinvestment Act (ARRA). Since then many advocacy organizations have been busy learning the details of this act and offering guidance to the field. Today we share advice from Julie Shuell of the ICF Early Education Institute and then point readers to some web sites with additional insights on ARRA.

Next Steps
Now that ARRA has been passed by Congress, federal agencies are required to submit plans to the Office of Management and Budget on how they will dispense the funds and how they will provide guidance to the field. Since the early childhood funds in ARRA are primarily to be dispensed as block grants, the Child Care Bureau will be issuing guidance documents to grantees (states, tribes and territories). Since the law requires federal agencies to start reporting in May how their funds have started stimulating the economy, it is assumed that these instructions will be issued shortly.

There are two factors that complicate next steps. First, most states are still in the midst of developing their annual budgets and trying to guage how ARRA funds will impact these shrinking budgets. Second, current state child care block grant plans don't expire until October, so there is a question as to whether states will be required to submit separate plans to revisions to their current plans.

One key instruction eagerly awaited by the states is how to interpret the "supplant" provision which basically states that ARRA funds cannot be used to supplant funding or projects already in place in states. For example, due to the economic crunch many states have had to cut back on the number of subsidized slots. So the question is, can states use ARRA funds to reinstate these lost slots, or would that be considered supplanting.

Advice to States
First, since there is no assurance that this funding will be repeated, states should think about whether or not to invest in activities with continuing costs. When general goal is to increase the number of child care spaces available, this can be a challenge.

Second, states should be looking for across the board coordination. ARRA funds will be coming down with through various federal agencies (as block grants or competitively), but for maximum impact, the use of these funds should not be developed in silos. State housing leaders should be talking with education leaders about collaborating on projects. Head Start planners should be coordinating with child care planners since there is no way that Early Head Start can expand as rapidly as required without reaching out to community programs.

Third, states must pay close attention to the accountability requirements of ARRA. States need to be thinking now about how they are going to prepare the reports on how the funds are being spent as well as on how many jobs are being created as a result of this spending.

Advice to Providers
Five suggestions that early childhood providers can start moving on today:

Make sure that your organization is in any state level coordinating or advisory bodies. Make sure you or someone representing you is at the table when plans are discussed.
Right now, assess your program's capacity to serve more subsidized children. Whether or not your program currently serves subsidized children, you must be able to prove that you have the space and capability to serve more children.
Many states are talking about using the ARRA money for professional development activities -- support for caregivers to get CDAs and BAs. So you should be thinking about what training your staff needs to upgrade its skills and what organizations in the state you could link with to get this training.
At the local level, providers should be talking to each other -- community child care, Head Start, and Pre-K providers -- to find ways to work together to accomplish the goals of ARRA.
This legislation comes with an unprecedented level of transparency so providers can follow the flow of funds. However, the implementation of ARRA will be happening at such as rapid rate that providers cannot wait for news to appear on the internet. You need to be connected with state associations or state agencies that can keep you in the know about when, where and how to apply for support.

More Resources

For a summary of the early childhood funding in ARRA, go to National Women's Law Center.
For a chart showing how much early childhood funding is projected to go to each state, go to the Center for Law and Social Policy.
For a thinkpiece on how states can use ARRA funds for quality rating and improvement systems, go to BUILD.
For an interactive tool for "Designing Your Own Stimulus Package, go to Center for American Progress.
For a great resource on how to become an effective advocate, Stick Your Neck Out: A Street-Smart Guide to Creating Change in Your Community and Beyond, go to Exchange's web site.

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