The federal stimulus package, American Recovery and Reinvestment Act (ARRA), includes several funding streams that could support school health centers or start new school health centers. The increased funding for the sources listed below are all opportunities that schools or community agencies can apply/advocate for at the local level.

Title I – School district funding for programs supporting disadvantaged students

Workforce Investment Act – Includes youth employment programs

Community Clinic Funding – Expanding federally qualified health center operations and infrastructure

Rural Community Facilities Development – Rural community (health) facility loans and grants

Education Innovation Grants – Programs that expand best practices in closing the achievement gap

Title I

School districts will be receiving a large increase in their Title I funding which is for “education for the disadvantaged” and is allocated based on the number of low-income students in a district. Although school districts are facing huge cuts due to the state budget, there is a “maintenance of effort” requirement for the Title I funds. This means that the augmentation in Title I should fund some new programs and services for disadvantaged students. These programs may include school health and support programs, though it may be necessary to demonstrate how school health services will help students to improve academically. School boards and administrators will decide how to use these funds locally. Contact your local school and/or school district to advocate for an allocation of Title I funds to school health and mental health services.

Information about this provision in ARRA can be found on page 67 of the bill.

The Department of Education has published a web page that provides a clear overview of the Title I funds under ARRA. Click here to read more. The web page provides states and LEAs with basic information regarding how and when Title I, Part A, ARRA funds will be awarded by the U.S. Department of Education. Additional guidance regarding these funds, including how they should be used, the submission of waiver requests, and the reporting requirements, will be posted on www.ed.gov.

In general, Title I funds must supplement, not supplant, other funds already designated for the school/program. Section 1114 reads: “A school participating in a schoolwide program shall use funds available to … supplement the amount of funds that would, in the absence of funds under this part, be made available from non-Federal sources for the school.” Follow the link for more detailed guidance covering many issues related to state dissemination of these funds. In this guidance, section C-9 clarifies the circumstances under which LEAs can use ARRA Title I funds to cover programs previously supported by non-federal funds without violating regulations related to the “supplement, not supplant” requirement. In short, if you had a program that was funded by a private grant last year but the grant has ended or priorities for the grant have shifted, you may be able to use ARRA funds to continue the program. Please see the guidance for clarification.

If a school has a population in which 40 percent or more of the students are from low-income families, they receive Title I funds as a schoolwide program, under which funds and programs may serve all students. If the school population does not meet those income requirements, then schools may receive Title 1 funds as targeted assistance schools, whereby the funds can only serve students that meet the income requirements.

Find more information and supportive resources at the California Department of Education website.

Workforce Investment Act (WIA)

Additional funds will be available for “youth activities, including summer employment for youth.” It is estimated that California will receive an additional $188 million for this program. This may be an opportunity for a school health center to seek funding for a youth peer educator program that would provide youth with a job while also introducing them to health careers. You apply to your local WIA Board for this funding. Follow the link to find your local WIA Board.

Information about this provision in ARRA can be found on page 58 of the bill.

Link to the Workforce Investment Act of 1998.

The excerpts below from WIA are provided to help you determine if a program at your health center would be eligible. Funds for these programs will most likely be administered through a competitive grant process run by local WIA boards.

DISADVANTAGED YOUTH.—Subject to paragraph (3), the term ‘‘disadvantaged youth'' means an individual who is age 16 through 21 who received an income, or is a member of a family that received a total family income, that, in relation to family size, does not exceed the higher of—(i) the poverty line; or (ii) 70 percent of the lower living standard income level.

SEC. 129. USE OF FUNDS FOR YOUTH ACTIVITIES.

(a) PURPOSES.—The purposes of this section are—

(1) to provide, to eligible youth seeking assistance in achieving academic and employment success, effective and comprehensive activities, which shall include a variety of options for improving educational and skill competencies and provide effective connections to employers;

(2) to ensure on-going mentoring opportunities for eligible youth with adults committed to providing such opportunities;

(3) to provide opportunities for training to eligible youth;

(4) to provide continued supportive services for eligible youth;

(5) to provide incentives for recognition and achievement to eligible youth; and

(6) to provide opportunities for eligible youth in activities related to leadership, development, decisionmaking, citizenship, and community service.

136(b)(2)(A)(ii)(I) (ii) CORE INDICATORS FOR ELIGIB LE YOUTH.—The core indicators of performance (for participants who are eligible youth age 14 through 18) for youth activities authorized under section 129, shall include—

(I) attainment of basic skills and, as appropriate, work readiness or occupational skills.

Community Clinic Funding

Federally Qualified Health Centers (FQHCs) are community clinics that have a special designation by the federal government and receive federal funding. These clinics will be receiving additional funding under the stimulus and may be opening new sites. A school seeking a health center should connect with an FQHC to discuss the possibility of opening a site at the school. The California Primary Care Association's website has a “find a clinic” feature to help you locate clinics near you.

Information about this provision in ARRA can be found on page 61 of the bill.

The National Association of Community Health Centers has comprehensive information on how community clinics can apply for or access ARRA funding.

There are two ARRA allocations to community health centers that are of interest to existing or potential school health centers: health center operations and infrastructure. Infrastructure funds can be used for construction, renovation, equipment, and acquisition of health information technology. Operations funds can be used to support new sites and services areas, to increase services at existing sites, and to provide supplemental payments for spikes in uninsured populations. Grants for new sites and services areas are to be two years in length as startup is phased in. The timeline for the allocation and spending of the funds should be released by HRSA by mid-May 2009.

Rural Community Facilities Development

The ARRA includes funding to support $1,234,000,000 in loans and grants for essential rural community facilities including health centers. Of this amount, $1,171,000,000 is for direct community facility loans and $63,000,000 is for community facility grants. Health centers located in municipalities with less than 20,000 residents typically qualify for these funds. Funding for these programs should be released soon and will be administered by the California Rural Development, Community Programs Office. The office has indicated that rural health clinics serving children are a high funding priority, and that both community clinics and public agencies such as school districts can apply for facilities loans or grants. Depending on the median income of the community, grants may cover 15% to 75% of project costs. Grants are typically $30,000-$50,000. Follow the link for the California USDA office related to community facilities.

Information about this provision in ARRA can be found on page 4 of the bill.

Follow the link for a brochure on the rural community facilities loan and grant program.

Follow the link for an application, all required documentation/forms, and regional offices in California.

Rural Community Facilities Program Account: The Community Facilities Program Account is one of three funding streams of the Rural Community Advancement Program. The Community Facilities loan and grant program, administered by RHS, supports essential community facilities such as fire stations, community centers, and medical clinics. Funding is allocated to state rural development offices by formula where state directors set priorities particular to their state's rural needs.

Community Facility Direct and Guaranteed Loans: Loans are made for constructing, enlarging, or improving essential community facilities in rural areas and towns with a population of not more than 20,000. Eligible applicants must demonstrate that they cannot obtain funding in the commercial market at reasonable rates. Applications for health and public safety projects receive the highest priority. Interest rates are determined by the median family income of the area and range from 4.5% to 5.375%. In the case of guaranteed loans, the loans are made by a private lender and the interest rate is negotiated between lender and borrower. Eligibility Criteria: Priority is for loans to build essential community facilities that support public health and safety. The highest priority goes to projects located in a community with a population of 5,000 or less and to projects serving communities with median household incomes below the higher of the poverty line or 60% of the state non-metropolitan median household income. Healthcare, public safety, or public and community services are priority areas.

Community Facility Grants: In most cases, these grants are used in conjunction with the direct loan program to make community facilities available to the neediest communities, which often cannot afford even direct loans without additional subsidies. These grants were authorized under the 1996 farm bill (P.L.104-127). Eligibility Criteria: Low-income communities unable to secure funding on a loan basis. Public bodies, nonprofit organizations, special purpose districts (e.g., nursing homes) are eligible applicants. Funding is for communities of 20,000 or less. Priority is given to communities of 5,000 or less. Facility must serve areas where median household income is below the poverty line or 90% of the state non-metropolitan median household income. The Community Facilities Grant Program is typically used to fund projects under special initiatives, such as: Native American community development efforts; child care centers linked with the federal government's Welfare-to-Work initiative; Economic Impact Initiative Grants, federally designated Enterprise and Champion Communities, and the Northwest Economic Adjustment Initiative.

Education Innovation Grants

Local Education Agencies (LEAs) or partnerships between non-profits and LEAs will have an opportunity to apply directly to the federal government for grants to expand best practices in “closing the achievement gap.” Partnerships with the private sector and philanthropic community are encouraged. The RFP for these grants is not available yet. We will provide additional information as it becomes available.

Information about this provision in ARRA can be found on page 169 of the bill.