<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=us-ascii">
<meta name="Generator" content="Microsoft Word 14 (filtered medium)">
<style><!--
/* Font Definitions */
@font-face
{font-family:Wingdings;
panose-1:5 0 0 0 0 0 0 0 0 0;}
@font-face
{font-family:Wingdings;
panose-1:5 0 0 0 0 0 0 0 0 0;}
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
p.emailquote, li.emailquote, div.emailquote
{mso-style-name:emailquote;
mso-margin-top-alt:auto;
margin-right:0in;
mso-margin-bottom-alt:auto;
margin-left:1.0pt;
border:none;
padding:0in;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
span.EmailStyle18
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
/* List Definitions */
@list l0
{mso-list-id:621620477;
mso-list-template-ids:1380217342;}
@list l0:level1
{mso-level-number-format:bullet;
mso-level-text:\F0B7;
mso-level-tab-stop:.5in;
mso-level-number-position:left;
text-indent:-.25in;
mso-ansi-font-size:10.0pt;
font-family:Symbol;}
@list l0:level2
{mso-level-number-format:bullet;
mso-level-text:o;
mso-level-tab-stop:1.0in;
mso-level-number-position:left;
text-indent:-.25in;
mso-ansi-font-size:10.0pt;
font-family:"Courier New";
mso-bidi-font-family:"Times New Roman";}
@list l0:level3
{mso-level-number-format:bullet;
mso-level-text:\F0A7;
mso-level-tab-stop:1.5in;
mso-level-number-position:left;
text-indent:-.25in;
mso-ansi-font-size:10.0pt;
font-family:Wingdings;}
@list l0:level4
{mso-level-number-format:bullet;
mso-level-text:\F0A7;
mso-level-tab-stop:2.0in;
mso-level-number-position:left;
text-indent:-.25in;
mso-ansi-font-size:10.0pt;
font-family:Wingdings;}
@list l0:level5
{mso-level-number-format:bullet;
mso-level-text:\F0A7;
mso-level-tab-stop:2.5in;
mso-level-number-position:left;
text-indent:-.25in;
mso-ansi-font-size:10.0pt;
font-family:Wingdings;}
@list l0:level6
{mso-level-number-format:bullet;
mso-level-text:\F0A7;
mso-level-tab-stop:3.0in;
mso-level-number-position:left;
text-indent:-.25in;
mso-ansi-font-size:10.0pt;
font-family:Wingdings;}
@list l0:level7
{mso-level-number-format:bullet;
mso-level-text:\F0A7;
mso-level-tab-stop:3.5in;
mso-level-number-position:left;
text-indent:-.25in;
mso-ansi-font-size:10.0pt;
font-family:Wingdings;}
@list l0:level8
{mso-level-number-format:bullet;
mso-level-text:\F0A7;
mso-level-tab-stop:4.0in;
mso-level-number-position:left;
text-indent:-.25in;
mso-ansi-font-size:10.0pt;
font-family:Wingdings;}
@list l0:level9
{mso-level-number-format:bullet;
mso-level-text:\F0A7;
mso-level-tab-stop:4.5in;
mso-level-number-position:left;
text-indent:-.25in;
mso-ansi-font-size:10.0pt;
font-family:Wingdings;}
ol
{margin-bottom:0in;}
ul
{margin-bottom:0in;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="blue" vlink="purple">
<div class="WordSection1">
<p class="MsoNormal"><a name="_GoBack"></a><span style="font-family:"Cambria","serif"">To: Superintendents, Principals, and Business Managers</span><o:p></o:p></p>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">Re: Sequestration Update</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif""> </span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">As promised, we wanted to provide an update on what we currently know about the impacts of the sequester on federal education funding. Please note that this is all still subject to change and
we will keep you updated as more information becomes available.</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif""> </span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><b><span style="font-family:"Cambria","serif"">What are the program specific cuts?</span></b><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">The most recent numbers we have seen show cuts averaging around 5% to the following federally funded education programs. Numbers vary slightly (although not significantly) from those sent out
in our last communication. This also provides additional detail on cuts to some of the smaller federal programs. The following information was provided by the US Department of Education this week.</span><o:p></o:p></p>
</div>
<table class="MsoNormalTable" border="0" cellpadding="0" width="625" style="width:468.75pt">
<tbody>
<tr>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal"> <o:p></o:p></p>
<div style="margin-top:6.0pt">
<p class="MsoNormal"><u><span style="font-size:11.0pt;font-family:"Cambria","serif"">PROGRAM</span></u><o:p></o:p></p>
</div>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="margin-top:6.0pt;text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">FY 2013 at
<o:p></o:p></span></p>
<div>
<p class="MsoNormal" align="center" style="margin-top:6.0pt;text-align:center"><u><span style="font-size:11.0pt;font-family:"Cambria","serif"">FY 2012 Level</span></u><span style="font-size:11.0pt;font-family:"Cambria","serif""><o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal" align="center" style="margin-top:6.0pt;text-align:center"><span style="font-family:"Cambria","serif""> </span><span style="font-size:11.0pt;font-family:"Cambria","serif""><o:p></o:p></span></p>
</div>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="margin-top:6.0pt;text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">FY 2013
<o:p></o:p></span></p>
<div>
<p class="MsoNormal" align="center" style="margin-top:6.0pt;text-align:center"><u><span style="font-size:11.0pt;font-family:"Cambria","serif"">Less Reduction (averaging 5%)</span></u><span style="font-size:11.0pt;font-family:"Cambria","serif""><o:p></o:p></span></p>
</div>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"> <o:p></o:p></p>
<div>
<p class="MsoNormal" align="center" style="text-align:center"><u><span style="font-size:11.0pt;font-family:"Cambria","serif"">Reduction</span></u><o:p></o:p></p>
</div>
</td>
</tr>
<tr style="height:21.85pt">
<td style="padding:.75pt .75pt .75pt .75pt;height:21.85pt">
<p class="MsoNormal" style="margin-top:9.0pt"><span style="font-size:11.0pt;font-family:"Cambria","serif"">Title I Grants to Local Educational Agencies</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt;height:21.85pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">155,776,434</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt;height:21.85pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">145,339,020</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt;height:21.85pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">10,437,414</span><o:p></o:p></p>
</td>
</tr>
<tr>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" style="margin-top:9.0pt"><span style="font-size:11.0pt;font-family:"Cambria","serif"">School Turnaround Grants</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">5,762,843</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">5,474,701</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">288,142</span><o:p></o:p></p>
</td>
</tr>
<tr>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" style="margin-top:9.0pt"><span style="font-size:11.0pt;font-family:"Cambria","serif"">Impact Aid Basic Support Payments</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">3,378,442</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">3,209,520</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">168,922</span><o:p></o:p></p>
</td>
</tr>
<tr>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" style="margin-top:9.0pt"><span style="font-size:11.0pt;font-family:"Cambria","serif"">Improving Teacher Quality State Grants</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">23,673,143</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">22,337,255</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">1,335,888</span><o:p></o:p></p>
</td>
</tr>
<tr>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" style="margin-top:9.0pt"><span style="font-size:11.0pt;font-family:"Cambria","serif"">21</span><sup><span style="font-size:7.5pt;font-family:"Cambria","serif"">st
</span></sup><span style="font-size:11.0pt;font-family:"Cambria","serif"">Century Community Learning Centers</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">11,413,138</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">10,842,481</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">570,657</span><o:p></o:p></p>
</td>
</tr>
<tr>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" style="margin-top:9.0pt"><span style="font-size:11.0pt;font-family:"Cambria","serif"">English Learner Education State Grants</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">7,668,179</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">7,397,256</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">270,923</span><o:p></o:p></p>
</td>
</tr>
<tr>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" style="margin-top:9.0pt"><span style="font-size:11.0pt;font-family:"Cambria","serif"">IDEA Part B Grants to States*</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">128,760,236</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">122,388,011</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">6,372,225</span><o:p></o:p></p>
</td>
</tr>
<tr>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" style="margin-top:9.0pt"><span style="font-size:11.0pt;font-family:"Cambria","serif"">Career and Technical Education State Grants***</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">13,452,227</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">12,410,066</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">1,042,161</span><o:p></o:p></p>
</td>
</tr>
<tr>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" style="margin-top:9.0pt"><span style="font-size:11.0pt;font-family:"Cambria","serif"">Work-Study Grants</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">12,445,918</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">12,121,340</span><o:p></o:p></p>
</td>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Cambria","serif"">324,577</span><o:p></o:p></p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal"><span style="display:none"><o:p> </o:p></span></p>
<table class="MsoNormalTable" border="0" cellpadding="0" width="625" style="width:468.75pt">
<tbody>
<tr>
<td style="padding:.75pt .75pt .75pt .75pt">
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Cambria","serif"">Notes:</span></b><span style="font-size:11.0pt;font-family:"Cambria","serif"">
<o:p></o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Cambria","serif"">Other grants not mentioned above include:</span><span style="font-family:"Arial","sans-serif";color:#1F497D">
</span><span style="font-size:11.0pt;font-family:"Cambria","serif""><o:p></o:p></span></p>
</div>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:0in;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-family:"Cambria","serif"">Rural and Low-income Schools
<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:0in;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-family:"Cambria","serif"">Mathematics and Science Partnerships
<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:0in;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-family:"Cambria","serif"">English Literacy and Civics Education
<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:0in;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-family:"Cambria","serif"">Education for Homeless Youth
<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:0in;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-family:"Cambria","serif"">Title 1 Migrant Ed
<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:0in;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-family:"Cambria","serif"">Title 1 Neglected and Delinquent
<o:p></o:p></span></p>
<div style="margin-top:9.0pt">
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Cambria","serif"">These programs will also receive reductions averaging around 5%.<o:p></o:p></span></p>
</div>
</td>
</tr>
</tbody>
</table>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">*Assuming current funding allocations continued for the 2013-14 school year.</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"> <o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><b><span style="font-family:"Cambria","serif"">What do we know about how the sequester will relate to the federal education budget for the coming school year?</span></b><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">At this time, it seems most likely that a 2013 Continuing Resolution (CR) budget would be in place for the coming year. The CR budget would continue current 2013 funding at 2012 levels minus the
5% cuts from sequestration. The numbers in the chart above represent Continuing Resolution with the sequester reductions and are our best guess as to federal funding levels for the coming school year (2013-14). The U.S House passed its version of the CR
budget on March 6, 2013. The U.S. Senate will likely take this up, and amend it, starting next week. Thus, there is still a possibility the numbers in the chart could change and drop further. </span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"> <o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><b><span style="font-family:"Cambria","serif"">When will these cuts take effect?</span></b><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">We have been informed that these cuts will affect funding starting with the 2013 appropriations. There will be no change in 2012 appropriations. This was confirmed this week in a message directly
from Arne Duncan, so we don’t anticipate a change to this timeline.</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif""> </span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><b><span style="font-family:"Cambria","serif"">Will these cuts affect Maintenance of Effort?</span></b><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">No. Sequestration does not change the underlying statutory requirements that govern program operations, including within-State allocation requirements. There is no change in maintenance of effort
requirements, supplement not supplant rules, hold-harmless requirements, or State or local reservations of funding for required activities.</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif""> </span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><b><span style="font-family:"Cambria","serif"">How do the IDEA cuts impact FAPE?</span></b><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">Districts are still required to provide a free and appropriate public education (FAPE) to students with disabilities. The IDEA funding reductions with therefore impact other areas of education
funding so that districts can continue to provide the needed services.</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif""> </span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><b><span style="font-family:"Cambria","serif"">Will sequestration affect school improvement funding for the coming year?</span></b><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Cambria","serif"">Funding for Title I-A school improvement comes from required set-asides within the State’s Title I-A allocation. With a potential reduction, as a result of sequestration, funds
for school improvement could be affected. It is too early to determine the exact impact sequestration will have on grants to Priority and Focus Schools.</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Cambria","serif""> </span><o:p></o:p></p>
</div>
<div style="margin-top:5.0pt;margin-bottom:5.0pt">
<p class="MsoNormal"><b><span style="font-family:"Cambria","serif"">Given all of this, how should I plan my budget?</span></b><o:p></o:p></p>
</div>
<div style="margin-top:5.0pt;margin-bottom:5.0pt">
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">Each district will need to consider its individual circumstances.
</span><o:p></o:p></p>
</div>
<div style="margin-top:5.0pt;margin-bottom:5.0pt">
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">Since we don’t know how the U.S. Senate may amend the Continuing Resolution, a conservative approach would be to plan for up to a 10% reduction in federal education funding (around 5% from the
sequester and perhaps up to 5% from possible allocation reductions). Alternatively, you may wish to develop more than one set of budgeted numbers using different assumptions,
<i>e.g</i>., one with a 5% cut from sequestration and one with up to 10% reductions, to provide you with information under more than one scenario.</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">We understand how difficult it is to plan a budget without all of the pertinent information and we will continue to provide updates on any new information regarding the impacts of the sequester.</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif""> </span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">If you have additional questions
</span><span style="font-size:11.0pt;font-family:"Cambria","serif"">regarding sequestration and Title programs, please contact Russ Sweet at
</span><span style="font-family:"Cambria","serif""><a href="mailto:russ.sweet@state.or.us"><span style="font-size:11.0pt">russ.sweet@state.or.us</span></a></span><span style="font-size:11.0pt;font-family:"Cambria","serif""> or 503-947-5638.</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"> <o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Cambria","serif"">If you have additional questions relating to the IDEA cuts, please contact Steve Smith,
<a href="mailto:Steve.W.Smith@state.or.us">Steve.W.Smith@state.or.us</a> or 503-947-5711.</span><o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"> <o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"> <o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"> <o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"> <o:p></o:p></p>
</div>
</div>
</body>
</html>