JACKSON - The governor's office is working on guidelines on how to distribute the $321 million in federal stimulus money set aside of education.

Mississippi received approval in April on its plans to spend the money on public schools, community colleges and universities. The state will be eligible to apply for another $158 million this fall.

The U.S. Department of Education said the state must keep track of information related to the quality of classroom teachers, student improvement, college readiness and other issues to receive the funding.

Gov. Haley Barbour's office is working on the application process for schools to receive money.

"We're in the process of developing guidelines of how to apply for that money and the timeline for it," said Barbour spokesman Dan Turner. "That money will be awarded in the fiscal year of the application."

State Superintendent of Education Hank Bounds said meetings with superintendents and other district officials are planned to inform them of stimulus guidelines.

One decision that has been made is to make half of the money available for the fiscal year that begins July 1 and the remainder in the fiscal year that begins July 1, 2010.

Turner said that's because Mississippi began feeling the effects of a national recession later than other states and has not faced the severe budget shortfalls that have plagued bigger states like California.

"Where our problem is going to be is in the future years. The prudent thing to do is to push the money to where the problem was," he said.

The state will use 79 percent of the funds for K-12 and 20 percent on universities and community colleges, according to an analysis by Denver-based Education Commission of the States.

Noxubee County Superintendent Kevin Jones said he needs help soon to lower dropout rates and improve test scores in his district. Jones said the district's financial situation has improved since earlier this year, when it was one of four districts facing bankruptcy.

"But we do need every dime we can get," he said.