Colorado Economic Recovery and Accountability

Press Release - Education Plan for Recovery Funds Submitted

FOR IMMEDIATE RELEASE
FRIDAY, MAY 29, 2009


CONTACT:

Myung Oak Kim, 303-947-5708, myung.kim@state.co.us


COLORADO SUBMITS EDUCATION PLAN TO FEDS FOR RECOVERY DOLLARS


Colorado officials today submitted their application to the U.S. Department of Education for $760 million from the American Recovery and Reinvestment Act to help sustain education programs and jobs across Colorado.


"With the help of Recovery Act funds, Colorado will be able to preserve K-12 and higher education programs, keep teachers in the classroom, and avoid layoffs in state government," Gov. Ritter said. "Colorado will be well-positioned to come out of this downturn stronger than ever."


As part of the Recovery Act, the State Fiscal Stabilization Fund will help support vital state services in the face of dwindling revenue during the recession. More than 80 percent of the State Fiscal Stabilization dollars must be spent to shore up K-12 and higher education programs. The remaining 18.2 percent is dedicated to shoring up state budgets. States are allocated funds according to a formula, but state officials must still apply for the dollars and follow strict regulations and extensive reporting requirements.


According to the plan developed by Gov. Ritter's office and the legislature, $452 million of stabilization funds will go to colleges and universities and $170 million to K-12 programs. An estimated $70 million will be used to balance the state General Fund budget, $10 million is allocated to enhance the state's competitiveness for the Race to the Top education reform grants through the Recovery Act. The remaining $58 million is being set aside in case the state encounters further revenue shortfalls.


More information:


State Fiscal Stabilization Fund Application


State Fiscal Stabilization Fund Charts