IDEA-B and NCLB LEAMaintenance of Effort (MOE)

Texas Education Agency (TEA)

34 CFR §300.203

Requires LEAs to expend the same amount of local/state funding for

special education and related services as it expended in the previous fiscal

year.

IDEA-B LEA MOE

LEA must pass one of four tests:

1. Total State and Local Expenditures

2. Per Capita State and Local Expenditures

3. Total Local Expenditures

4. Per Capita Local Expenditures

Four Test Methods

Federal Statutory Exceptions

a) Voluntary departure of personnelb) Decrease in enrollmentc) Termination of an exceptionally costly

program d) Termination of costly long-term

purchasese) Assumption of cost by the high cost

fund

CEIS Set-Aside amounts up to 15%

MOE Voluntary Reduction up to 50%

Combined, the CEIS Set-Aside and MOE Voluntary Reduction may not exceed lower of the two

MOE Voluntary Reduction

Significant PEIMS Errors

◦Must change compliance status◦Will not change PEIMS data◦Replaces PEIMS in FFCR database

ONLY

State Reconsiderations

Federal Funds Which May be Considered as State or Local Funds

Legislatively Mandated Changes to Account for Funds

State Reconsiderations

Significant Timing Issues

SHARS federal reimbursement expended in Special Education

State Reconsiderations

IDEA-B LEA MOE

Fiscal Agents and Member Districts

TEA has no authority to resolve SSA disputes

Member Districts must contact their Fiscal Agent for amounts reported on their behalf

State Reconsideration for Significant PEIMS Errors

34 CFR 300.203(b)(2)

Requires LEAs to BUDGET the same amount of local/state funds for special

education and related services as it expended in the most recent fiscal year

for which information is available.

IDEA-B Eligibility Requirement

Special Education Consolidated Grant Application

Schedule BS6006 - Fiscal Compliance Requirements

Part 1: LEA MOE Eligibility

Part 2: CEIS Set-Aside and MOE Voluntary Reduction Amount

Section 9521 of Elementary and Secondary Education Act (ESEA)

Requires LEAs to expend the local/state funds at 90% of the level at

which it expended in the preceding fiscal year.

NCLB LEA MOE

Title I, Part A, Improving Basic Programs Operated by Local Educational Agencies

Title I, Part B, Subpart 3, Even Start; Title I, Part D, Prevention and Intervention Programs for

Children and Youth who are Neglected, Delinquent, or At-Risk;

Title II, Part A, Improving Teacher Quality State Grants; Title III, Part A, English Acquisition State Grants; Title IV, Part B, 21st Century Learning Centers; and Title VI, Part B, Subpart 2, Rural Education

Covered Programs

LEA must pass one of four tests:

1. Total State and Local Expenditures. 2. Total State and Local Expenditures per-pupil

for refined average daily attendance (ADA). 3. Total State and Local Expenditures per-pupil

for Membership. 4. Total State and Local Expenditures per-pupil

for Enrollment.

Four Test Methods

Refined Average Daily Attendance

Membership

Enrollment (In Enrollment)

Fiscal Effort per Student

There are NO federal statutory exceptions for NCLB LEA MOE!

State Reconsideration for Significant PEIMS Errors◦ Must change compliance status◦ Will not change PEIMS data◦ Replaces PEIMS in FFCR database

ONLY

Exceptions/Reconsiderations

NCLB LEA MOE Waiver

Only USDE has authority to waive penalty under:

◦ Exceptional or uncontrollable circumstances, such as a natural disaster

◦ Precipitous decline in financial resources

Receipt of USDE waiver DOES NOT constitute compliance with MOE requirement

Noncompliance impacts all covered programs

NCLB LEA MOE Waiver

LEAs should not send refunds until requested by TEA

Payment must be made with state/local funds

LEAs have 30 days to refund amounts due

Corrective Action

For questions, please send an email to

Compliance@tea.state.tx.us

Additional Questions?