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Oct 15, 2009 - 11:43:30 AM

The U.S. Department of Education Office of Inspector General recently issued an alert memorandum in response to growing concerns about States' administration of the State Fiscal Stabilization Fund (SFSF) as part of the American Recovery and Reinvestment Act of 2009 (ARRA). According to the Inspector General, the "flexibility inherent in the Maintenance of Effort (MOE) requirements may be resulting in States reducing funding for public education."

The memo specifically cited concerns about the waivers requested by Connecticut, Pennsylvania and Massachusetts. It went on to state that "the OIG Hotline has received complaints from several States relating to this issue....the issue could affect additional States, and therefore, could be having a larger impact on education reforms." The memo also encouraged the U.S. Department of Education to step up monitoring and tracking processes.

To view the U.S. Department of Education Office of Inspector General's memo and the U.S. Department of Education's response, click here.