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American Recovery and Reinvestment Act

Goals and Guidelines under the Act

The overall goals of the ARRA are to stimulate the economy in the short term and to invest in education and other essential public services to ensure the long-term economic health of our nation. There are two components of the SFSF (the Education Stabilization Fund and the Government Services Fund) that share the same federal principles for distribution:

Save and Create Jobs

* Improve Student Achievement through School Improvement and Reform
• Ensure Transparency and Accountability and Report Publicly on the Use of Funds
• Invest One-Time ARRA Funds Thoughtfully to Minimize the “Funding Cliff"

Additionally, the federal government has issued guidelines that indicate for what purposes an institution of higher education may use the SFSF funds:

Education and general expenditures, in such a way as to mitigate the need to raise tuition and fees for in-State residents – this includes a broad array of activities such as support for salaries related to classroom and laboratory instruction and instructional technology; academic support for libraries, laboratories and other academic facilities; institutional support for activities related to personnel, payroll, security, environmental health and safety and administrative offices; student services that promote emotional and physical well-being outside the context of a formal instructional program, and student financial aid.

Modernization, renovation, or repair of facilities that are primarily used for instruction, research or student housing. (Funded projects must comply with specific requirements relating to the use of American iron, steel and manufactured goods used in the project.)

Institutions of higher education are prohibited from using the funds to:

• Increase endowments

• Maintain systems, equipment or facilities

• Modernize, renovate or repair stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public

• Modernize, renovate or repair facilities used for sectarian instruction or religious worship or in which a substantial portion of the functions of the facilities are subsumed in a religious mission.

University of Minnesota Principles for Allocation of the SFSF

Consistent with the federal goals and principles, the University has decided that allocation of the one-time SFSF appropriation will support the following University goals:

• Access to affordable education

• Job retention for talented faculty, staff and students

• Investments with high rates of return to strengthen the University’s academic quality and financial future

• Investments to reduce future ongoing costs of operation

• Investments to enhance revenue generation/leverage other funding sources/grow revenue base

In support of the goals, the specific projects or initiatives funded with the SFSF appropriation will fall within one of the following categories:

• mitigation of tuition and fees for students

• modernization/renovation/repair of facilities (as allowed)

• bridging to lower FTE counts or lower operating costs as a result of implemented FY10 budget reductions (supporting classroom or laboratory instruction or administrative functions)

• one-time costs of academic program enhancements

• one-time costs of service unit initiatives

• research or technology infrastructure advancements

Please feel free to contact us with any questions.