Yuma school officials unsure of stimulus outcome

Local school officials are reacting cautiously to news that Arizona schools will receive twice as much federal stimulus funds than expected because, according to published reports, state officials did not follow regulations.

Yuma County School Superintendent Tom Tyree said it was difficult to comment on the issue.

"The idea the state gets a double payment doesn't make sense to me," Tyree said. "At this point in time, there is much to be learned about the situation and we'll see how it unfolds."

Capitol Media Services previously reported Gov. Jan Brewers office put $250 million into the budget for kindergarten through 12th grade education for the fiscal year 2008-09 that ended June 30. This figure was based on the amount Arizona expected in its first draw of a $557 million federal stimulus grant awarded to Arizona on June 4.

But according to the U.S. Department of Education, the stimulus education funds have to go directly to school districts, and it is illegal to move the money into the state treasury.

The state also erred when it neglected to get applications from the schools, which must then cite a specific need for the funds. Now, the state treasury must find a means to replenish the $250 million.

Paul Senseman, Gov. Brewer's spokesman, was quoted as saying the governor's office did nothing wrong and the first thing it will do is solicit the required applications from schools.

"Sounds to me as if someone didn't understand the process," Tyree said. "Now the question is, if the money has to be paid back, who will have to pay it?"

Toni Badone, Yuma Union High School District superintendent, said the stimulus cash in question is stabilization funds and that YUHSD has not received any stabilization funds.

She added that YUHSD already submitted applications for the funds, which she said are complicated by specific rules. The district has researched the requirements, and she assumed the state had done the same.

"Federal officials will make the decision about whether to pay it back, and the state will make the decision of where the money comes from," Badone said. "When the district submitted the stabilization funds application, we were under the impression we wouldn't receive any new money. It was just to document the state's application to receive those funds to keep our budget afloat."

Yuma Elementary School District 1 Superintendent Darwin Stiffler said his district will need to look further into the issue to see how it may affect the district.

Cindy Didway, Crane Elementary School District superintendent, also said she first learned of the issue when she read about it in the media. Until her district receives a legal update from Arizona School Administrators or the Arizona School Boards Association, it will proceed according to its adopted budget, she added.

Raymond Aguilera, Gadsden Elementary School District superintendent, said he could not believe the governor's office made an error because it is typically reliable. He noted that Gadsden receives stimulus money for maintenance and operations as well as Title I funds to improve math and reading skills for low performers, plus special education funds.

The application for the latter two have already been submitted but the funds were not disbursed, so if they do not come through, there will be no impact. Aguilera declined further comment until he hears additional information from the governor's office.

Allegations the state neglected to follow the law have now required Dean Martin, state treasurer, to borrow $130.9 million to make certain that checks to schools do not bounce. Martin, who traveled to Washington, D.C., this week as a private citizen, took time off from personal business to meet with the staffs of Arizona's U.S. senators, Jon Kyl and John McCain, as well as U.S. Rep. Ed Pastor to uncover what happened.

Martin said federal rules differ depending on which stimulus funds are received. For health care, it is OK to pay vendors and then get reimbursed by the federal government, but for education that is not the case.

"These rules were established back in April and the governor's office signed off on them on June 4," Martin said. "So the governor's office was wrong when they distributed the money before getting the funds from the federal government."

Arizona now must mend the budget to incorporate these rules because if they do not, the school districts could get paid twice - once from the federal government and once from the state, he said.

"The governor and the state must come up with a budget that follows the rules, but the schools still get the stimulus money even if they don't. But the state could be another $500 million in the red if they don't fix the K-12 budget."

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William Roller can be reached at
wroller@yumasun.com or 539-6858.