South Carolina is a finalist in the second round of  the “Race to the Top” competition for federal education grants totaling $175 million over a four-year period. Education officials expected South Carolina’s selection as a finalist. The state came in sixth place during the first round, which was won by only Delaware and Tennesee. Approximately a dozen states are expected to take home grants this time.

State Superintendent of Education Jim Rex says once again the state’s education system is viewed as being at the forefront of changes that will make schools stronger.

U.S. Department of Education officials say that out of 35 states submitting applications, South Carolina is among 19 tapped as the education systems with the boldest plans. They earned the highest scores in areas like academic standards and commitment to improving teacher effectiveness. At stake nationwide is $3.4 billion from the economic stimulus package approved by Congress last year. Rex says the exact amount of grant money on the table for South Carolina could depend on which states are chosen.

But the grant funds will not remedy severe budget shortfalls for the education agency. Rex says his department has lost $750 million over the last two years. He says the grant money must be used for very specific applications.

AUDIO: Rex on grant competition (1:13)

The finalist states include: Arizona, California, Colorado, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, and South Carolina.

Deputy State Superintendent of Education Betsy Carpentier, who oversaw South Carolina’s 1,700-page grant application, said the biggest change the state would see, if it were to receive the grants, would be a tighter focus on the impact of individual educators on their students’ achievement.

Finalists will send teams to Washington on August 10 to make presentations. The winners will likely be announced in early September.