State Fiscal Stabilization Fund — Government Services Fund
The stimulus act created a substantial source of funding, totaling more than $50 billion, called the State Fiscal Stabilization Fund. It was designed, in part, to help ameliorate the effects of the economic downturn on state and local education budgets. This program is detailed in the Education section of the Dell Funding Web site.
However, in a congressional compromise, $9 billion was designated for a separate Government Services Fund that governors can choose to use for a wider range of projects. The stimulus act stipulates that states may use this money for “public safety and other government services, which may include assistance for elementary and secondary education and public institutions of higher education, and for modernization, renovation, or repair of public school facilities and institutions of higher education facilities, including modernization, renovation, and repairs that are consistent with a recognized green building rating system.”
In its guidance document, the department has made clear that the scope of allowable expenditures is broad, and includes construction, renovation and modernization of other government buildings, as well as infrastructure support. Depending on the nature of the project, permissible repair and renovation activities might involve “work related to electrical systems, plumbing systems, sewage systems, heating, ventilation or air conditioning systems, the installation of energy-efficient windows, the repair or replacement of roofs, asbestos abatement or removal, bringing facilities into compliance with fire and safety codes, making facilities accessible, or upgrading facilities to support new programs or services.” However, the funds cannot be used for “maintenance of systems, equipment or facilities,” or to construct certain kinds of facilities, such as casinos and arenas.
Click here to review further details in the department’s guidance document.
Governors had until July 1, 2009, to file an application to receive funds from the State Fiscal Stabilization Fund; among other things, they had to specify how they intended to use the money among the permissible categories of services.
Click here to review your state’s application and its plans for using this funding. In July 2009, the department announced it would distribute the full amount of a state’s allocation as soon as the application had been approved.
For additional details on how your state is using or distributing this funding, click here for a map that will link you to your state’s own recovery Web site.