State Fiscal Stabilization Fund
Total Stimulus Appropriation: $48.6 billion
New Jersey’s Portion: $1.33 billion
Allocation Method: The U.S. Department of Education (USDOE) distributes the funds to the states based on a formula.
The State will distribute the bulk of the funds via the state’s primary school funding formula enacted in the School Funding Reform Act.
New Jersey will receive $1.33 billion from the State Fiscal Stabilization Fund created under the American Recovery and Reinvestment Act (ARRA). Per federal requirements, 81.8% ($1.088 billion) must be used for education purposes, and the remaining 18.2% ($242 million) is to be used other government services, which can include education.
New Jersey’s Portion: $1.33 billion
Allocation Method: The U.S. Department of Education (USDOE) distributes the funds to the states based on a formula.
The State will distribute the bulk of the funds via the state’s primary school funding formula enacted in the School Funding Reform Act.
New Jersey will receive $1.33 billion from the State Fiscal Stabilization Fund created under the American Recovery and Reinvestment Act (ARRA). Per federal requirements, 81.8% ($1.088 billion) must be used for education purposes, and the remaining 18.2% ($242 million) is to be used other government services, which can include education.
New Jersey is allocating its State Fiscal Stabilization Fund (SFSF) in the following way:
- Approximately $1.057 billion will be used to implement the new school funding formula enacted by the School Funding Reform Act of 2008 (SFRA).
- About $70.8 million is allocated to higher education. These funds will be used to restore cuts for higher education that were included in the proposed budget for FY 2010. These cuts will be restored if certain conditions, including limits on tuition increase, are met. Furthermore, the increase in funding for Tuition Aid Grants (TAG) proposed in the Governor’s FY 2010 budget will be supported with SFSF dollars.
- The remaining $200 million of these funds will be used to offset state costs for FY 2009 and FY 2010. Of that $200 million, $162 million will cover outstanding state costs for FY 2009, and the remaining $38 million will be used as budget relief for FY 2010. It is most likely that these funds will be used for additional Medicaid costs and nursing home costs.
To view New Jersey’s full application to the USDOE for the SFSF please visit the USDOE’s website.
