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Update on Use of SFSF Grants

To:Superintendents and Business Officers
From:Mitchell D. Chester, Ed.D., Commissioner
Date:June 30, 2009


Yesterday the Governor signed legislation (St. 2009, c.26, s.49) that exempts salary expenditures from FY09 and FY10 state fiscal stabilization fund (SFSF) grants from the special 9% pension chargeback that usually applies to any federal grants. SFSF grants are being provided to local and regional school districts from the federal ARRA (stimulus) package to cover the shortfalls in Chapter 70 funding.

For FY09, if your district has been unable to identify sufficient general fund non-salary expenses to transfer to your FY09 SFSF grant, this will allow you to use fourth quarter salary expenses without penalty. You do not need to file an amended grant application; the revised allocation of expenses should be reflected on your final grant financial report. Application forms for FY10 SFSF grants will be available shortly.

Please note that if SFSF funds are used to pay salaries for non-certified personnel, your district is still responsible for its regular employer contributions to your local retirement system. For certified personnel covered by the state Teachers Retirement System, the full cost of the employer contributions will be paid by the state.

You are also reminded that SFSF funds may not be used to pay for maintenance or custodial costs, which would include salaries for maintenance workers and custodians.

Last Updated: June 30, 2009
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