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December 3, 2009

Dear Chief State School Officers:

I am pleased to inform you that, today, the Department posted on www.ed.gov the final  requirements and the State application package for School Improvement Grants  (SIG) authorized under section 1003(g) of Title I of the Elementary and  Secondary Education Act (ESEA).  These  final requirements govern the process that a State educational agency (SEA) must  use to award SIG funds to local educational agencies (LEAs) that demonstrate  the greatest need for the funds and the strongest commitment to use the funds  to raise substantially the achievement of students attending Title I schools in  improvement, corrective action, and restructuring, as well as certain secondary  schools that are eligible for, but do not receive, Title I funds.  Specifically, the final requirements will direct  section 1003(g) SIG funds in significant amounts to each State’s persistently  lowest-achieving schools in order to turn around those schools.

Along  with the final requirements, the Department is releasing five percent of each  State’s allocation of fiscal year (FY) 2009 SIG funds.  As you know, more than $3.5 billion in FY  2009 SIG funds is available:  $545.6  million that was appropriated in the Department of Education Appropriations Act,  2009; and $3 billion that was appropriated in the American Recovery and  Reinvestment Act of 2009 (ARRA).  An SEA  is authorized to reserve, under section 1003(g)(8) of the ESEA, not more than five  percent of its total SIG allocation for SIG-related administration, evaluation,  and technical assistance expenses.  We  are awarding these State-level SIG funds now, prior to the approval of your  State’s application for SIG funds so that you may immediately begin support of  State and local efforts to implement the final requirements by the beginning of  the 2010–11 school year.  Your State is  receiving two grant awards:  one for SIG  funds from the regular 2009 appropriation (CFDA # 84.377A) and one for SIG  funds from the ARRA (CFDA # 84.388A).

Although  we are awarding each State the maximum amount of State-level SIG funds (in lieu  of an SEA’s reservation), your State is not required to reserve the full  amount.  If you choose to retain less  than five percent for State-level activities, you should add the excess funds  to the SIG funds you will soon receive for allocation to eligible LEAs.  As your grant awards indicate, you may use  your State-level SIG funds for allowable pre-award costs that you have incurred  since the beginning of the respective Federal funding periods:  February 17, 2009 for SIG ARRA funds and July  1, 2009 for regular SIG funds.  The  State-level SIG funds are available for use throughout the period of  availability of SIG funds, which may be extended through September 30, 2013, if  your State applies for and receives a waiver of the period of availability.  The grant awards reflect the maximum amount  of FY 2009 SIG funds an SEA may reserve for the entire period of availability.

Your  State may use these funds to prepare its SIG application (which will include a  request for any applicable waivers and a description of its LEA application  process) and to provide technical  assistance to eligible LEAs.  For example, your State may wish to provide guidance and tools  that LEAs can use to carry out needs assessments, screen partner organizations,  and review school staff, or may support networks of district leaders charged  with planning and leading turnaround efforts.

You may also wish to launch or expand  efforts to recruit or develop principals and other staff to serve in your  State’s persistently lowest-achieving schools and to identify, screen, and attract  Education Management Organizations and Charter Management Organizations willing  to work with LEAs to implement the “restart” model in those schools.  In addition, your State may allocate some of  the funds to LEAs with Tier I and Tier II schools to support planning for  implementation of selected school intervention models if and when they receive  a grant under the SIG program.  An LEA  might, for example, use the funds to review student achievement data; evaluate  current policies and practices that support or impede reform; assess the  strengths and weaknesses of school leaders, teachers, and staff; recruit and  train effective principals capable of implementing one of the school intervention  models; or identify and screen outside partners.

The early release of State-level FY 2009 SIG  funds is the second of two steps the Department has taken to support State  efforts to administer FY 2009 Title I funds, including Title I ARRA funds.  On October 27, 2009, the Department published  in the *Federal Register* a notice of final adjustments that permits each SEA  to reserve an additional percentage of Title I, Part A funds (0.3 or 0.5  percent of its Title I, Part A ARRA allocation, depending on whether the SEA  requests waivers of certain requirements) to help defray the costs associated  with data collection and reporting requirements under the ARRA.  This increase in State administrative funds  may be used to support data collection activities associated with ARRA funds,  including those required by the ARRA SIG program.



| | Sincerely, 
| | -----------
| | /s/        
| | Arne Duncan