SJI Issues Guidance on Supplantation of State and Local Funds

The new SJI Grant Guideline for FY 2010 provides guidance on the justification of personnel compensation for state courts and other governmental agencies. Specifically, Section IV. A.4(a) of the Grant Guideline (describing the Budget Narrative) states: "No grant funds or cash match may be used to pay the salary and related costs for a current employee or new employee of a court or other unit of government because such funds would constitute a supplantation of state or local funds in violation of 42 U.S.C.10706, Sec.(d)(1); this includes new employees hired specifically for the project. The salary and any related costs for a current or new employee of a court or other unit of government may only be accepted as in-kind match."

In addition, Section IV.A.4(k) of the Grant Guideline (describing Indirect Costs) states: "Indirect costs are only applicable to organizations that are not state courts or governmental agencies." Recently, SJI has received grant applications where either the state court or another governmental entity was applying an indirect cost rate to all grants, regardless of source. This practice is being employed with more regularity because of the reduced budgets in many states and jurisdictions. Regardless, SJI is not permitted to allow these indirect costs per 42 U.S.C. 10706, Sec.207(d)(1), and will not accept applications from state courts and other governmental agencies that include them.

If there are questions about the Grant Guideline, potential grant applicants are strongly encouraged to contact SJI prior to submitting applications.