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August 23, 2010 – Today, Nebraska’s Senator Ben Nelson said that the state of Nebraska is not required to seek federal education funding Congress recently approved to keep teachers on the job nationwide. Also, federal officials have confirmed to Senator Nelson that if the state does not apply for the money, other entities would have to apply for the money to reach Nebraska.
“The state of Nebraska can say no to federal education money that could keep 1,000 Nebraska educators on the job through next year,” Senator Nelson said. “The U.S. Department of Education has confirmed to my office that the state does not have to accept the money. The state would have to apply for the money and most likely that would mean the governor or State Board of Education. If neither chose to apply, another entity or entities would have to apply to the government, or no federal education money would come to Nebraska.”
Nelson concluded: “The bottom line is: this federal education money isn’t being forced on the state; it has a choice to make and an opportunity to say no.”
Nelson sought clarification from the U.S. Department of Education in light of reported comments made recently and today by Governor Dave Heineman. The language in the bill says that the U.S. Secretary of Education shall provide for funds to be made available to entities other than the Governor, but doesn’t say they must be accepted by these entities. The entities must apply to receive the funding.
Following is the section of the bill pertaining to the distribution of the education funding:
“(8) ALTERNATE DISTRIBUTION OF FUNDS.--If, within 30 days after the date of the enactment of this act, a Governor has not submitted an approvable application, the Secretary shall provide for funds allocated to that State to be distributed to another entity or other entities in the State (notwithstanding section 14001(e) of division A of Public Law 111-5) for support of elementary and secondary education, under such terms and conditions as the Secretary may establish, provided that all terms and conditions that apply to funds appropriated under this heading shall apply to such funds distributed to such entity or entities. No distribution shall be made to a State under this paragraph, however, unless the Secretary has determined (on the basis of such information as may be available) that the requirements of clauses (i), (ii), or (iii) of paragraph 10(A) are likely to be met, notwithstanding the lack of an application from the Governor of that State.”
Congress passed the Education Jobs bill and the President signed it into law on August 10, 2010. The $26 billion bill is paid for by reducing other federal spending and closing foreign tax loopholes used by companies. It provides an additional $10 billion in teacher funding and an additional $16 billion in Medicaid payments to the states.
Nebraska would receive about $59 million in education money and $69 million in Medicaid money from the bill, according to federal estimates.
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