POLICY LETTER: February 12, 2010 to American Association of School Administrators Deputy Executive Director Bruce Hunter

February 12, 2010Bruce HunterDeputy Executive DirectorAmerican Association of School Administrators801 North Quincy Street, Suite 700Alexandria, VA 22203Dear Mr. Hunter:This is in response to your electronic mail (email) communication dated October 8, 2009, to Patricia Guard, former Acting Director of the Office of Special Education Programs (OSEP) at the U.S. Department of Education (Department). Specifically, you requested a formal response to your question regarding how State Fiscal Stabilization Funds (SFSF) under the American Recovery and Reinvestment Act of 2009 (ARRA), can be used to meet State maintenance of effort (MOE) requirements under Part B of the Individuals with Disabilities Education Act (Part B of the IDEA). You also asked whether IDEA funds provided under ARRA could be used to meet State funding shortfalls. I understand that you have received questions regarding these issues from your constituents and would like a formal response.The Department issued guidance concerning Part B of the IDEA ARRA funds in April 2009. The Part B Guidance (Funds for Part B of the Individuals with Disabilities Education Act Made Available Under The American Recovery and Reinvestment Act of 2009) was revised on July 1, 2009 to include a section H entitled Treating Stabilization funds as State or Local Funds for Purposes of Meeting the IDEA, Part B MOE Requirements. This document can be found at: http://www.ed.gov/policy//s/Alexa Posny, Ph.D.Acting DirectorOffice of Special Education ProgramsPage PAGE * MERGEFORMAT 2 Bruce Hunter