SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Keep Our Educators Working Act of 
2010''.

SEC. 2. RETAINING EDUCATORS.

    (a) Education Jobs Fund.--There is appropriated, for fiscal year 
2010, for necessary expenses for an Education Jobs Fund, 
$23,000,000,000. Such amount shall be appropriated, out of any money in 
the Treasury not otherwise appropriated, for the Department of 
Education. The amount shall remain available for obligation by the 
Department through the date that is 180 days after the date of 
enactment of this Act. The amount shall be administered by the 
Secretary of Education under the terms and conditions of titles XIV and 
XV of division A of the American Recovery and Reinvestment Act of 2009 
(Public Law 111-5), subject to the provisions of subsection (b).
    (b) Special Rules.--
            (1) Allotments to states and outlying areas.--The funds 
        appropriated under this Act shall be available only for 
        allocations by the Secretary of Education under subsections (a) 
        and (d) of section 14001 of the American Recovery and 
        Reinvestment Act of 2009 (Public Law 111-5), except that the 
        Secretary may reserve not more than $1,000,000 for 
        administration and oversight of this Act, including for program 
        administration.
            (2) Reservation by state.--With respect to funds 
        appropriated under this Act, a State that receives an 
        allocation of such funds in accordance with section 14001(d) of 
        such Act may reserve a total of not more than 5 percent of the 
        State's allocation for--
                    (A) the administrative costs of carrying out the 
                State's responsibilities with respect to such funds, 
                except that in no case shall the State reserve more 
                than 1 percent of its total allocation for those costs; 
                and
                    (B) the costs of retaining or creating positions in 
                the State educational agency or the State agency for 
                higher education, and other State agency positions 
                related to the administration or support of early 
                childhood, elementary, secondary, or postsecondary 
                education.
            (3) Awards to local educational agencies and public 
        institutions of higher education.--
                    (A) Use of funds.--Subsections (a) and (b) of 
                section 14002 of the American Recovery and Reinvestment 
                Act of 2009 (Public Law 111-5) shall not apply to an 
                allocation of funds appropriated under this Act. Except 
                as provided under paragraph (2), an allocation of such 
                funds shall be used only for awards to local 
                educational agencies and public institutions of higher 
                education for the support of early childhood, 
                elementary, secondary, and postsecondary education in 
                accordance with subparagraph (B).
                    (B) Distribution by governor.--
                            (i) In general.--The Governor of a State 
                        receiving an allocation of funds appropriated 
                        under this Act shall use the appropriated funds 
                        to award grants to local educational agencies 
                        (through the State's primary elementary and 
                        secondary funding formulae) and public 
                        institutions of higher education in order to 
                        restore the reductions in State funding for 
                        elementary and secondary education and for 
                        public institutions of higher education, 
                        respectively, that remain for fiscal years 2010 
                        and 2011, as determined in accordance with 
                        clause (iv).
                            (ii) Insufficient amount.--
                                    (I) In general.--In the case of a 
                                State that receives an allocation of 
                                funds appropriated under this Act for a 
                                fiscal year that is less than the 
                                amount necessary to carry out clause 
                                (i), the Governor of the State shall 
                                distribute the State's allocation for 
                                such fiscal year between local 
                                educational agencies (through the 
                                State's primary elementary and 
                                secondary funding formulae) and public 
                                institutions of higher education in 
                                proportion to the relative reductions 
                                in State support for these two 
                                categories of education for such fiscal 
                                year.
                                    (II) Exception.--The Governor may 
                                adjust the amount of funds awarded to 
                                local educational agencies (in the 
                                aggregate) and the amount of funds 
                                awarded to public institutions of 
                                higher education (in the aggregate) for 
                                a fiscal year pursuant to subclause (I) 
                                by increasing or decreasing such 
                                amounts of funds by the amount that is 
                                not more than 10 percent of the larger 
                                of the 2 amounts of funds.
                            (iii) Distribution of excess amount.--In 
                        the case of a State that receives an allocation 
                        of funds appropriated under this Act that is 
                        more than the amount necessary to carry out 
                        clause (i), the Governor of the State shall use 
                        any funds remaining after the application of 
                        clause (i) to provide local educational 
                        agencies in the State with awards, based on the 
                        local educational agencies' relative shares of 
                        funds 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 fiscal year 
                        for which data are available.
                            (iv) Calculation of reductions.--For 
                        purposes of calculating reductions in State 
                        funding under this subparagraph for a fiscal 
                        year--
                                    (I) the amount of reductions in 
                                State funding for elementary and 
                                secondary education or for public 
                                institutions of higher education for a 
                                fiscal year shall be determined by 
                                comparing the level of such State 
                                funding for such fiscal year with the 
                                level of such State funding for the 
                                preceding fiscal year; and
                                    (II) the levels of such State 
                                funding shall include any funds 
                                received by the State under section 
                                14001(d) of the American Recovery and 
                                Reinvestment Act of 2009 (Public Law 
                                111-5) and, for fiscal year 2011, any 
                                funds received by the State under this 
                                section for fiscal year 2010.
            (4) Inapplicability of education reform assurances.--
        Subsection (b), and paragraphs (2) through (5) of subsection 
        (d), of section 14005 of the American Recovery and Reinvestment 
        Act of 2009 (Public Law 111-5) shall not apply to any 
        application for an allocation of funds appropriated under this 
        Act from a State that has an approved application for Phase II 
        of the State Fiscal Stabilization Fund under title XIV of 
        division A of such Act that was submitted in accordance with 
        the application notice published in the Federal Register on 
        November 17, 2009 (74 Fed. Reg. 59142).
            (5) Requirement to use funds to retain or create education 
        jobs.--Notwithstanding sections 14003(a) and 14004(a) of such 
        Act, funds appropriated under this Act may be used only for--
                    (A) compensation and benefits and other expenses 
                necessary to retain existing employees, and for the 
                hiring of new employees, in order to provide early 
                childhood, elementary, secondary, or postsecondary 
                educational and related services; or
                    (B) on-the-job training activities, as defined in 
                section 101(31) of the Workforce Investment Act of 1998 
                (29 U.S.C. 2801(31)), for education-related careers.
            (6) Prohibition on use of funds for rainy day funds or debt 
        retirement.--
                    (A) In general.--Subject to subparagraph (B), a 
                State that receives an allocation of funds appropriated 
                under this Act may not use such funds to--
                            (i) establish, restore, or supplement a 
                        reserve or rainy day fund of the State or to 
                        supplant State funds in a manner that has the 
                        effect of establishing, restoring, or 
                        supplementing a reserve or rainy day fund; or
                            (ii) reduce or retire debt obligations 
                        incurred by the State or to supplant State 
                        funds in a manner that has the effect of 
                        reducing or retiring debt obligations incurred 
                        by the State.
                    (B) Exception.--Subparagraph (A) shall not apply to 
                fund balances that are necessary to comply with any 
                State requirement to maintain a balanced budget.
            (7) Application considerations.--If, by a date set by the 
        Secretary of Education, a Governor has not submitted an 
        approvable application under section 14005(a) of the American 
        Recovery and Reinvestment Act of 2009 (Public Law 111-5), the 
        Secretary may provide for the distribution of funds 
        appropriated under this Act that are allocated under section 
        14001(d) of the American Recovery and Reinvestment Act of 2009 
        for the State to 1 or more other entities in the State, in such 
        amounts and under such terms and conditions as the Secretary 
        may establish, as long as all terms and conditions that apply 
        to the appropriation under this Act shall apply to such funds 
        distributed to such entity or entities.
            (8) Local educational agency application.--The requirements 
        of section 442 of the General Education Provisions Act (20 
        U.S.C. 1232e) shall not apply to a local educational agency 
        that has previously submitted an application to the State under 
        title XIV of division A of the American Recovery and 
        Reinvestment Act of 2009 (Public Law 111-5) and wishes to 
        receive funds appropriated under this Act, as the assurances 
        provided under the previous application shall continue to apply 
        to funds awarded under this Act.
            (9) Maintenance of effort.--
                    (A) In general.--In order for a State to receive an 
                allocation of funds appropriated under this Act, the 
                Governor of a State shall, in lieu of the assurances 
                required under section 14005(d)(1) of the American 
                Recovery and Reinvestment Act of 2009 (Public Law 111-
                5), provide assurances to the Secretary of Education 
                that, for each of fiscal years 2010 and 2011, the State 
                will--
                            (i) meet the requirements of section 
                        14005(d)(1) for such fiscal year; or
                            (ii) provide, for elementary and secondary 
                        education and for public institutions of higher 
                        education (not including support for capital 
                        projects or for research and development or 
                        tuition and fees paid by students), percentages 
                        of the total revenues available to the State 
                        for each fiscal year that--
                                    (I) for fiscal year 2010, are not 
                                less than such percentages, 
                                respectively, for fiscal year 2006; and
                                    (II) for fiscal year 2011, are not 
                                less than such percentages, 
                                respectively, for fiscal year 2009.
                    (B) Inapplicable requirement.--Section 14012(c) of 
                the American Recovery and Reinvestment Act of 2009 
                (Public Law 111-5) shall not apply with respect to any 
                allocations made for fiscal year 2011 from funds 
                appropriated under this Act.
            (10) Period for obligation of funds.--The Secretary of 
        Education may extend the period of time available to States and 
        recipients of awards under this section to obligate the funds 
        appropriated under this Act for one additional fiscal year 
        beyond the period provided for under section 421(b)(1) of the 
        General Education Provisions Act (20 U.S.C. 1225(b)(1)).

SEC. 3. EMERGENCY DESIGNATION.

    This Act is designated as an emergency requirement pursuant to 
section 403(a) of S. Con. Res. 13 (111th Congress), the concurrent 
resolution on the budget for fiscal year 2010.
Keep Our Educators Working Act of 2010 - Appropriates funds for an Education Jobs Fund.

Allocates the bulk of such Fund for grants to states pursuant to a formula that considers each state's share of individuals age 5 through 24 and each state's share of the nation's total population.

Authorizes states to reserve a portion of the grant funds for administrative costs and for retaining or creating state education positions.

Requires states to use the bulk of the grant to award subgrants to local educational agencies (LEAs) and public institutions of higher education to restore the reductions in state funding for elementary and secondary education and for public institutions of higher education that remain for FY2010 and FY2011, after including the funds they received for such reductions under the American Recovery and Reinvestment Act of 2009.

Requires states that receive a grant that is more than what is required to cover such activities to allocate the excess to their LEAs based on the LEAs' relative share of school improvement funds under title I of the Elementary and Secondary Education Act of 1965.

Limits the use of subgrant funds to retaining or hiring new employees, or on-the-job training activities for education careers.

Designates this Act's appropriation as an emergency requirement.
A bill to establish an Education Jobs Fund.