State Fiscal Stabilization – $54 Billion
The federal government is distributing $54 billion in stimulus funding to help shrink state budget deficits. The majority of the funding ($40 billion) is to be used by public school districts to avert budget cuts in 2009-2011. $5 billion is controlled by the Secretary of Education and will be disbursed as grants. The remaining $9 billion will be disbursed to states and spent at the governors’ discretion.
Which institutions are being funded?
The funds will be distributed by formula to keep each district level. District and school administrators will control allocation of the funds and be the key decision makers. Schools with the most money and discretion will remain the top prospects and normal demographic factors still apply, i.e. enrollment, area wealth, and site-based management. In discretionary spending terms, low-income schools will remain restricted. Marketers need to act now – it’s not too soon. The money is targeted to be available beginning in the current school year that ends on June 30th. Since schools are among the institutions that have “use or it lose it” requirements, there will be a push to spend money as soon as it is disbursed. Plus, many schools will be planning purchases this spring in anticipation of the additional funds in the coming year’s budget.
Who will decide what to purchase?
The decision makers at schools and school districts include 14,000 public school superintendents and 93,000 public school principals. Prior to the bill’s passage, President Obama spent a great deal of time focusing on the benefits of technology, particularly in the education and healthcare sectors so technology directors are also good prospects. School librarians and curriculum directors will also have a say in how some of the funding is spent. Specialized job functions that may be of interest to niche marketers include mangers or directors responsible for building and grounds maintenance, food service, safety and security, and transportation.
MCH can help you target these decision makers with high-quality marketing data. Request more information by using this form or call us now at 1-800-776-6373.
What will they be buying?
As we mentioned above, the current administration holds technology and education in high regard. B2B marketers of computer products, staff development programs, and testing/curriculum materials should have their offers in front of education decision makers now. In addition, public schools will continue buying what they have always bought: maintenance supplies, furniture, signage, identification materials, security equipment, fundraising materials, sports equipment, musical supplies, instruments, theater/auditorium equipment, audio visual and media equipment, uniforms, logo gear, and craft supplies.
What does it mean for your business?
In summary, where other organizations are going through catastrophic collapse, schools will remain steady at the highest recent level of their budget. If you’ve been marketing to successfully to Title I schools, redouble your efforts. If you haven’t marketed yet to Title I schools, call MCH today for an evaluation or use this form to request more information.
MCH is America’s leading compiler of business-to-institution marketing data. We have more than 80 years of experience helping companies sell to schools, school districts, and other educational institutions. Contact us today to find out how you can effectively target the $54 billion in new state fiscal stabilization funding.
