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Senators Seek Stimulus Funding Waiver, with $2.7 billion At Risk

Posted Feb 13, 2009 by Billy House

Updated Feb 14, 2009 at 01:07 AM

WASHINGTON – Florida’s senators on Friday wrote to Education Secretary Arne Duncan asking for swift help so the state may qualify for the $2.7 billion it would get from a key funding category of the stimulus bill.

Right now, Florida does not meet the requirements to receive its share of a huge $54.4 billion pot of money in the $787 billion bill that was fashioned to help cash-strapped states balance their budgets – mostly through added funding for education needs.

That’s because a state, to get the money, must be funding K-12 and higher education at no less than 2006 levels. States that are not would forfeit their share of the so-called “State Fiscal Stabilization Fund” money to other states.

Florida falls $600 million short on that count because it has 30,000 fewer students than in 2006, the biggest drop in public enrollment in the state’s history.

But in their letter Friday to Duncan, Democratic Sen. Bill Nelson and Republican Sen. Mel Martinez noted, “the legislation also provides you (the Education Secretary) with the authority to waive this requirement in cases of hardship.”

“We believe that your process will include soliciting applications from governors who wish to use State Fiscal Stabilization dollars … we trust that you will evaluate all applications and waiver requests as quickly and prudently as possible,” they wrote.

“Finally, we hope that you will give serious consideration to states that only fail to meet this requirement because of their unusually high levels of funding in 2006, and to those which have been hit particularly hard by unemployment, foreclosures, and other factors that affect families’ well being,” their letter concludes.