Oregon K-12 ARRA Implementation

The State Fiscal Stabilization Fund (SFSF) and Individuals with Disabilities Education Act (IDEA) grants allow expenditures for infrastructure. All infrastructure investments using ARRA funds require a certification that the project has received the full review and vetting required by law and that the investment is an appropriate use of taxpayer dollars.

Section 1511 Certification Process

The process for collecting required Section 1511 certifications and posting them on the Web is as follows:

• Download and complete the attached form.


• Print the completed form and obtain your Superintendent's signature.


• Keep the posted form on file for compliance reviews, complaint investigations or audits.


• Post the form on your website, if available.


• E-mail the completed form to julie.b.hansen@state.or.us. And send the original form to your ARRA Grant Manager.

You must provide the following information about the investment: a description of the project, the total cost of the project, and the amount of the cost to be funded with ARRA funds.

Background

Section 1511 of ARRA specifically requires that:

With respect to covered funds made available to State or local governments for infrastructure investments, the Governor, mayor, or other chief executive, as appropriate, shall certify that the infrastructure investment has received the full review and vetting required by law and that the chief executive accepts responsibility that the infrastructure investment is an appropriate use of taxpayer dollars. Such certification shall include a description of the investment, the estimated total cost, and the amount of covered funds to be used, and shall be posted on a website and linked to the website established by section 1526. A State or local agency may not receive infrastructure investment funding from funds made available in this Act unless this certification is made and posted. (ARRA, Title XV, Subtitle A – Transparency and Oversight Requirements, Sec. 1511. Certifications)

The ARRA itself does not define infrastructure. However, guidance from the U.S. Department of Education indicates:

An infrastructure investment is financial support for a physical asset or structure needed for the operation of a larger enterprise. Therefore, infrastructure investments include support for tangible assets or structures such as roads, public buildings (including schools), mass transit systems, water and sewage systems, communication and utility systems and other assets or structures that provide a reliable flow of products and services essential to the defense and economic security of the United States, the smooth functioning of government at all levels, and society as a whole. However, an infrastructure investment does not include “minor remodeling” as defined in 34 C.F.R. § 77.1(c). (See April 2010 Guidance on 1512 Reporting, pages 16-17.)

Minor remodeling means minor alterations in a previously completed building. The term also includes the extension of utility lines, such as water and electricity, from points beyond the confines of the space in which the minor remodeling is undertaken but within the confines of the previously completed building. The term does not include building construction, structural alterations to buildings, building maintenance, or repairs. (See 34 C.F.R. § 77.1(c).)

Under the SFSF program there is no monetary threshold for a project to be considered an infrastructure investment.

ARRA contains other requirements affecting infrastructure investments. Among the most significant of these provisions are:

1. Section 1605, which provides that grantees must use iron, steel, and manufactured goods that are produced in the United States for their projects; and


2. Section 1606, which provides that all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to the Act, shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with Subchapter IV of Chapter 31 of Title 40, United States Code.