Imagine receiving an unexpected financial windfall. You’ve got to come up with a way to make the money last a long time. And you’ve got to solidify your plan quickly.

That pretty much sums up the challenge facing school districts nationwide that stand to benefit from the $100 billion earmarked for education in the American Recovery and Reinvestment Act. School administrators are charged with thinking about the long term in the short term.

The stakes are higher than ever before. Texas public schools are expected to receive more than $6 billion under the landmark stimulus plan. Approximately $4 billion in state stabilization funds will go toward general operations. Another $2 billion will go toward low-income and special education students. The state will also receive $1 billion in tax credit bonds for school construction costs — $466 million of which is earmarked exclusively for 18 large districts.

“This is an historic opportunity to improve public education,” says R. Jerel Booker, who chairs the Texas Education Agency Commission’s Task Force on Federal Stimulus and Stabilization. “This is not a time for business as usual.”

TEA officials say their top priority is giving every student an effective teacher and closing the achievement gap between students of varying ethnicities and income levels. At the federal level, the U.S. Department of Education’s buzzword is “innovation.” The stimulus plan includes the $5 billion Race to the Top Fund, a competitive grant that rewards states for bold and creative programs.

To meet funding requirements, proposals from school districts must illustrate how the district will drive results for students, increase educators’ capacity, accelerate reform, improve productivity and foster continuous improvement.

The catch: In two years, the money will be gone. Federal officials have discouraged districts and states from pursuing initiatives or staffing that cannot be sustained once the funding ends in the fall of 2011.

TEA is encouraging districts to use technology to drive reforms. The agency emphasizes training educators how to use technology in the classroom, creating virtual schools, and offering teachers and administrators online professional development.

As Texas school districts weigh the scope and stakes of the state’s slice of the stimulus plan, administrators are turning to their staffs — and, in some cases, members of the community — to outline spending plans that will best suit their districts’ needs.

A tale of two districts
Plainview ISD was in tough financial shape during the 2008-2009 school year. Amid falling enrollment, the 6,000-student district in West Texas cut 37 teaching jobs last year. Moreover, unlike in past years, the district had no rollover special education funds, which meant Plainview ISD faced additional layoffs in that department as well.

However, with stimulus funds on the way, things are changing. Initial rumblings put the district’s share at $3.5 million, with additional funds for school construction. When Plainview ISD Superintendent Ron Miller first heard the news, he wondered what strings would be attached to the funds. Then he wondered how much money the district ultimately would get. The final figure — approximately $2 million, according to TEA — was substantially less than originally projected, but administrators in Plainview ISD say the money still will allow them to make important inroads.

Based on input from teachers and principals, the district plans to make substantial technological upgrades.  Approximately $300,000 will be used for equipment such as document cameras so teachers can display textbooks and worksheets on projectors. The district also plans to put 42-inch monitors in 275 classrooms, from kindergarten to eighth grade.

“A lot of our recently adopted curriculum has really good technology resources, but we just didn’t have access to the equipment,” says Plainview ISD Technology Director Gene Whitfill. “We didn’t know when we would be able to do it or how to fund it until we learned this money would be available.”

The remaining funds will help Plainview ISD avoid laying off special education teachers. The money also will enhance transition-planning services for students aging out of special education classes. Moreover, the district plans to improve staff development in science and math, boost reading and math intervention programs and expand teacher quality efforts, such as paying for certification costs (especially for English as a Second Language) and helping paraprofessionals become teachers.

Miller says the only disappointment was that Plainview would not be eligible for school construction bonds. “I thought there would be money available to use for the high school renovation,” he says.

Still, Miller says he’s relieved to see his district get a boost. “Now we have some direction to work with,” he says.

Meanwhile, in Northside ISD, the fourth-largest district in Texas, Superintendent John Folks has mixed feelings about the $29.2 million that’s coming his district’s way.

On one hand, Folks says he’s excited about the extra funding for low-income students, many of whom struggle to meet federal academic standards in reading and math. But when it comes to funding for special education students, his excitement diminishes a bit. As structured, Northside ISD will receive more money for special education, but it will still be required to contribute the same amount of local funds, which Folks says doesn’t provide any relief to the district’s budget.

He says that federal and state officials led him to believe otherwise.

“I thought we’d be able to reduce our local funds by half of the amount we were receiving,” he says. “Now they are saying you must meet certain targets. I think they are tying our hands a lot.

“I’m also disappointed that the state of Texas is using the stabilization fund to supplant rather than supplement the state budget,” Folks says. “We were counting on that money.”

But, Folks admits that overall he’s excited about the changes taking place in his district. Northside ISD has multiple plans under way.

The district intends to use some of the funding to categorize seven campuses as Title I schools and to add a reading and math specialist at each school. The district also plans to allocate additional revenue to current Title I schools and to be “very prescriptive” in how the campuses spend the money, Folks says.

For special education, the district is looking to improve its professional development offerings and update some equipment. In the area of technology upgrades, Northside ISD plans to increase the number of online courses for students, particularly those classes in which high school students can recover credits. Folks says that as long as students have alternative resources to continue receiving credits, “they are a lot more likely to stay in school.”

Getting everyone on board
TEA’s Booker says the biggest issue he sees among school districts right now is the need for more information on funding disbursements and guidance on drafting funding proposals. To ensure good communication with districts, TEA has devoted a section on its Web site to the stimulus plan — www.tea.state.tx.us/arrastimulus. It includes funding news, frequently asked questions, and a mailing list so administrators can receive the latest updates.

Funds received under the stimulus plan must be reported and tracked separately. The state agency is providing districts with special funding codes and additional training on meeting the reporting requirements. The state also has revised its internal controls, Booker says, by adding additional monitors and planning for more frequent audits.

Booker says TEA is looking to technology to make the most of its federal dollars. Texas is generally well-regarded for its data-tracking systems and other initiatives, but there’s always room for improvement. In Technology Counts 2009, an annual report by Education Week on the state of education technology, Texas received a B for its capacity to use education and a B-minus for its current use of technology.

This presents an opportunity to grow, Booker says.

“We don’t want to be in a race to the middle,” he quips. “We think technology is vital to creating 21st-century learning.”

Booker points to the Texas Virtual School Network, a consortium of districts that offers online courses, as one area of promise. Authorized by the Legislature in 2007, the network offered high school classes this school year. Middle school courses will go online in the fall, with offerings at all grade levels by the 2010-2011 school year.

Mineral Wells ISD, one district in the network, has offered courses to a variety of students, from those seeking to get ahead by graduating early to those wanting to take credit-recovery courses.

“For the most part, we’ve found it very easy to work with, and our kids have found it useful,” Curriculum Director Carolyn Cooper says. “But it’s important that the teachers … understand how to utilize an online course.”

Adds Booker: “As we move forward, these sorts of things allow students to collaborate and provide solutions to real-world problems. This is how business is done in this age, and students should be a part of that.”

RAVEN L. HILL is a writer based in Maryland. She specializes in education reporting and formerly worked at the Austin American-Statesman.