ESSER II Formula Funds Update

Public Act 3 of 2021 (HB 4048), signed by the Governor on March 9, 2021, released 43.6% of ESSER II Formula funds, approved a portion of ESSER II and GEER II Discretionary funds, and appropriated State Aid funds for other programs. 

Districts have had questions regarding the timing of the grant approval (award notification) of the 43.6% of ESSER II Formula funds; however, these funds have been approved in the last two weeks, and your district should have received its Grant Award Notification (GAN).

A couple of items to watch:

• The award date: If you received your GAN, you can record this revenue in fiscal year 2021. (The GAN must be dated June 30 or before to be recorded in FY 2021).
• The award amount: Some districts applied for more than 43.6% of funds. Before approval, the Department of Education corrected the amount to be at or below 43.6%.
• New allowable costs opened up: The 43.6% of ESSER II Formula funds [Section 11r (2)] has increased from 12 to 15 allowable areas. Among the expanded allowable uses are, “purchases of educational technology (including hardware, software, connectivity, assistive technology, and adaptive equipment) for students that aids in regular and substantive educational interaction between students and their classroom instructors, including students from low-income families and children with disabilities.”

The most recent accounting guidance from the Michigan Department of Education can be found on MDE’s website.

Contact your Yeo & Yeo professional if you need assistance.