Title 20, EducationRelease 119-110

§10002 State Uses of Funds

Title 20 › CHAPTER 80 — STATE FISCAL STABILIZATION FUND › § 10002

Last updated Sep 23, 2026|Official source

Summary

The Governor must spend 81.8% of the state’s grant on elementary, secondary, and postsecondary education and, if it applies, early childhood programs. First, the Governor must use that money to restore state funding so that for fiscal years 2009, 2010, and 2011 public K–12 funding via the state formulas is at least the larger of the 2008 or 2009 level. If the state had formula increases passed before October 1, 2008, those increases for 2010 and 2011 must be allowed to take effect, including any phase‑in for equity or adequacy. The Governor must also restore state support for public higher education (not counting student tuition and fees) for those same years to the larger of the 2008 or 2009 level. If the 81.8% is not enough to fully restore both K–12 and higher education, the money must be split between them based on how big each shortfall is. After that work is done, any leftover money goes to local school districts as subgrants, using their recent Title I shares. The Governor must use 18.2% of the grant for public safety and other government services. That can include help for schools and colleges and for modernizing, renovating, or repairing school and higher education buildings, including work that meets a green building rating. All types of colleges that meet the federal definition and stay eligible for Title IV must be considered for building funds. “Fiscal year” means whatever the State law says. Local school districts cannot use these funds for building work that would break state law.

Full Legal Text

Title 20, §10002

Education, Source: USLM XML via OLRC

(a)Education fund
(1)In general
For each fiscal year, the Governor shall use 81.8 percent of the State’s allocation under section 10001(d) of this title for the support of elementary, secondary, and postsecondary education and, as applicable, early childhood education programs and services.
(2)Restoring State support for education
(A)In general
The Governor shall first use the funds described in paragraph (1)—
(i)to provide the amount of funds, through the State’s primary elementary and secondary education funding formulae, that is needed—
(I)to restore, in each of fiscal years 2009, 2010, and 2011, the level of State support provided through such formulae to the greater of the fiscal year 2008 or fiscal year 2009 level; and
(II)where applicable, to allow existing State formulae increases to support elementary and secondary education for fiscal years 2010 and 2011 to be implemented and allow funding for phasing in State equity and adequacy adjustments, if such increases were enacted pursuant to State law prior to October 1, 2008.
(ii)to provide, in each of fiscal years 2009, 2010, and 2011, the amount of funds to public institutions of higher education in the State that is needed to restore State support for such institutions (excluding tuition and fees paid by students) to the greater of the fiscal year 2008 or fiscal year 2009 level.
(B)Shortfall
If the Governor determines that the amount of funds available under paragraph (1) is insufficient to support, in each of fiscal years 2009, 2010, and 2011, public elementary, secondary, and higher education at the levels described in clauses (i) and (ii) of subparagraph (A), the Governor shall allocate those funds between those clauses in proportion to the relative shortfall in State support for the education sectors described in those clauses.
(C)Fiscal year
For purposes of this paragraph, the term “fiscal year” shall have the meaning given such term under State law.
(3)Subgrants to improve basic programs operated by local educational agencies
After carrying out paragraph (2), the Governor shall use any funds remaining under paragraph (1) to provide local educational agencies in the State with subgrants based on their relative shares of funding under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for the most recent year for which data are available.
(b)Other government services
(1)In general
The Governor shall use 18.2 percent of the State’s allocation under section 10001(d) of this title for public safety and other government services, which may include assistance for elementary and secondary education and public institutions of higher education, and for modernization, renovation, or repair of public school facilities and institutions of higher education facilities, including modernization, renovation, and repairs that are consistent with a recognized green building rating system.
(2)Availability to all institutions of higher education
A Governor shall not consider the type or mission of an institution of higher education, and shall consider any institution for funding for modernization, renovation, and repairs within the State that—
(A)qualifies as an institution of higher education, as defined in subsection 10013(3) of this title; and
(B)continues to be eligible to participate in the programs under title IV of the Higher Education Act of 1965 [20 U.S.C. 1070 et seq.].
(c)Rule of construction
Nothing in this section shall allow a local educational agency to engage in school modernization, renovation, or repair that is inconsistent with State law.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Elementary and Secondary Education Act of 1965, referred to in subsec. (a)(3), is Pub. L. 89–10, Apr. 11, 1965, 79 Stat. 27. Part A of title I of the Act is classified generally to part A (§ 6311 et seq.) of subchapter I of chapter 70 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 6301 of this title and Tables. The Higher Education Act of 1965, referred to in subsec. (b)(2)(B), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219. Title IV of the Act is classified generally to subchapter IV (§ 1070 et seq.) of chapter 28 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 1001 of Title 20 and Tables.

Amendments

2009—Subsec. (a)(2)(A)(i). Pub. L. 111–8, § 523(a), inserted “education” after “secondary” in introductory provisions. Subsec. (b)(1). Pub. L. 111–8, § 523(b), substituted “10001(d)” for “10001”.

Reference

Citations & Metadata

Citation

20 U.S.C. § 10002

Title 20, Education

Last Updated

Sep 23, 2026

Release point: 119-110