The State Fiscal Stabilization Fund is a program established by the American Recovery and Reinvestment Act of 2009 (ARRA) and awarded by the US Department of Education. The US Department of Education will award governors approximately $48 billion under the SFSF program in exchange for a commitment to advance education reforms. These funds will help stabilize state and local government budgets in order to minimize and avoid reductions in education services.
Section 14005(d) of Division A of the American Recovery and Reinvestment Act (ARRA) requires any state receiving funds under the SFSF program to provide assurances in four key areas of education reform:
- Achieving Equity in Teacher Distribution
- Improving the Collection and Use of Data
- Standards and Assessments
- Supporting Struggling Schools
For each of these areas of reform, the ARRA prescribes specific actions that the State must assure that it will implement. These assurances come in the form of indicators and descriptors, each delineating a specific action to be taken. There are 32 indicators and 3 descriptors.