Greetings,

I always appreciate the opportunity to address questions and concerns regarding your ABLE programs. Below I have summarized the current funding and the funding process for ABLE dollars.

FEDERAL FUNDING FOR ABLE LOCAL PROGRAMS:

• ABLE programs have been level funded for years; since the original RFP's in 2002.
• Beginning July 1, 2008, the estimated ABLE Grant  state awards for all states were cut. 
• The Montana grant was reduced by $20,028. 
  • The amount for 2008 is $1,369,057/yr.
  • The amount in previous years was $1,429,057/yr.
  • The EL/Civics Award remains the same at $60,000/yr.
• This will be a 1.6% decrease in federal dollars for all Montana programs. Examples:
  • If a program received $9,814 in 2007, the program will receive $9,657 in 2008.
  • If a program received $153,800 in 2007, the program will receive $151,340 in 2008.

WHAT IS THE PROCESS FOR FEDERAL ALLOCATION?

• Congress revisits the law each year. It has been extended since the passage of the Adult Family and Literacy Act of 1998, which means that programs have not had to reapply for a grant award since 2002.
  • Programs have submitted extension applications based on the amount of money that was originally awarded.
• Reauthorization is expected after the new administration.

STATE FUNDING FOR ABLE LOCAL PROGRAMS:

• According to the federal law, all states must meet a required match 25% in order to be eligible for the ABLE funds.
  • $275,000/year was allocated for Montana ABLE programs by the state legislature 2001.
  • This amount did not meet the required federal match.
  • The remainder of the required match came from reported in-kind dollars.
    • In-kind dollars are local monies that go to the maintenance of a local ABLE program. Local monies can come from a variety of sources such as school districts, businesses, or even individuals.
    • In-kind dollars must meet maintenance of effort, which means they can be increased each year, but they cannot be decreased.
• The 2007 Montana legislature increased their required match for ABLE programs by $250,000/yr. $500,000/biennium.
  • This was a 47%/yr. increase, and the state required match was met.
  • Montana ABLE programs now receive $525,000 per year, $1,050,000/biennium.
  • In-kind monies must still meet maintenance of effort. The local money cannot be decreased as state dollars increase.

HOW IS STATE AND FEDERAL MONEY AWARDED TO A LOCAL PROGRAM?

• Extension applications are submitted from existing programs. Programs submit a budget based on previous awards.
  • The federal award did not change until this year. (1.6% decrease)
  • The state award did not change until last year. ($250,000 increase)
• New state money that was allocated last year was awarded according to a funding formula that was developed by a task force of state directors.
  • The original federal and state awards remained the same (hold harmless).
  • The formula for the $500,000 in new state includes the following components:
    • 50% of the money is base funding based on the number of students enrolled, with 120% of the base going to rural programs to account for the costs of maintaining a smaller program.
    • 15% based on need according to the census data.
    • 5% based on the number of students with 12 or more hours.
    • 15% based on the number of students making an education gain.
    • 15% based on the number of students attaining a core goal.
• There are 20 ABLE programs, of these 14 have received increased state dollars based on the funding formula.
  • Because of state statute, 6 ABLE programs currently do not receive state funding. There is a proposed language change for the next legislative session to allow all ABLE programs to receive state funding.

WHAT IS THE PROCESS FOR THE STATE ALLOCATION?

• February: The state ABLE director submits Legislation and Budget Request Form, or the Executive Planning Process Request Form (EPP) to the assistant superintendent. The EPP describes the proposal and the intended positive impact.
• February/March: The state director and assistant superintendent meet to review the EPP.
• March: If approved the assistant superintendent takes the EPP to the Superintendent of Public Instruction and the Cabinet for consideration.
• March: The Superintendent of Public Instruction and Cabinet make the final decision on all EPP proposals in order to finalize the Superintendent's budget for the next legislative session.
• April: The budget is submitted to the Governor.

WHAT WAS THE FISCAL EPP PROPOSAL FOR THE 2009 LEGISLATIVE SESSION?

• February 2008: EPP proposal for $275,000/yr. submitted.  Extensive background information accompanied the proposal validating the need for increase funds.
• February 2008:  Assistant superintendent requested that the state directors supply the following information:  1) what specifically did your program do with the increased funds? 2) What services were increased 3) what measurable outcomes can you relate to increased funding? 4) Can you share specific projects or programs that you have implemented that have had a positive economic impact on your community? Share data on the project, numbers served, targeted population.
• March 3, 2008: State director compiled the responses from directors to submit to the Superintendent and the Cabinet.
• March 21, 2008: The Cabinet did not recommend moving forward with the EPP for Adult Basic and Literacy Education Budget Request.  It was explained that the size of the increase that was provided in the last biennium, the exceptionally tight fiscal limits that the Governor's budget office is requesting of state agencies and the numerous other requests from programs, some of which had not received increases for quite some time, all contributed to this decision.
• March 25, 2008: State director submitted an inflationary adjustment for the next biennium. This would increase ABLE state dollars by $21,630/2010 and $43,260/2011.
• April, 2008: Inflationary adjustment for ABLE was approved by the Superintendent and Cabinet. Adjust was incorporated into the Superintendent's proposed budget.
• April 2008: The Office of Public Instruction's proposed budget submitted to the Governor.

If you have further questions regarding the funding process, please contact me or TJ Eyer at 406-444-7015.

Margaret Bowles, Adult Literacy and Basic Education Specialist

Office of Public Instruction

Box 202501

Helena MT 59602-5201

(406) 444-4443