Maintenance of EffortIV-B Funding
LEA Level
Special Education Services
Kansas Department of Education
Special Education Services
MOE Background
IDEA requires the LEA to maintain local effort The amount of local, or State and local, funds
expended for the education of children with disabilities is the amount of funds that establishes the level of expenditures to be maintained from year to year and establishes the MOE level
Not to “reduce the level of expenditures for the education of children with disabilities below the level of those expenditures for the preceding fiscal year” 34 CFR §300.203(a)
Special Education Services
What is MOE? MOE – Maintenance of Fiscal Effort
Met or satisfied through 4 different tests Only concerned with expenditures Some exceptions are allowed
So MOE can be different than what was expended
Target Based on expenditures
Compliance Eligibility Part of Budgeting Process
Special Education Services
4 Tests to Meet MOE
Total of State and Local Funds State and Local Funds per Student Level Total Local Funds Local Funds per Student Level
Student = special education student Tests used to analyze “expenditures for the
preceding fiscal year” (34 CFR §300.203(a)) The same test is used each year
Special Education Services
MOE is an Issue of Compliance and Eligibility Compliance:
Spend at least the same amount as expended the preceding fiscal year (34 CFR §300.203(a)) LEA expends $900,000 in FY 08-09 and expends
$950,000 in FY 09-10; therefore, the LEA complied with the MOE requirement from FY 08-09 to FY 09-10
Eligibility: Must budget at least the same amount for the
following year (34 CFR §300.203(b)) LEA expends $950,000 in FY 09-10 and budgets
$1,000,000 in FY 10-11; therefore, the LEA meets the IDEA MOE eligibility requirement for an FY 10-11 grant award
Special Education Services
Federal Funds and MOE
LEA cannot consider Federal Funds when calculating MOE (34 CFR §300.203(b)(3))
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Supplement vs. Supplant Meeting MOE satisfies the supplement not
supplant requirement If an LEA dedicates the same or greater MOE for
special education purposes, it will not violate the supplement/not supplant requirements of the IDEA.
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Exceptions to MOE
Special Education Services
Exceptions to MOE
Special Education Services
Decrease in the enrollment of children with disabilities 34 CFR §300.204 Must still meet the previous year’s per student
level
Exceptions to MOE
Special Education Services
Termination of costly expenditures for long-term purchases, such as the acquisition of equipment or the construction of school facilities 34 CFR §300.204 At least $5000 per unit (Defined in EDGAR) Useful life of at least one year $5000 form must be on file
(Which basically means prior approval from SES) Only for non-local fund expenditures
A note on construction: IDEA funds cannot be used for construction 34 CFR
§300.718
Exceptions to MOE Termination of an exceptionally costly
obligation to a particular child with a disability because the child: Has left the jurisdiction; Has reached the age at which the obligation to
provide a free appropriate public education (FAPE) to the child is terminated; or
No longer needs the program of special education 34 CFR §300.204
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Additional Guidance on MOE Exception
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Contact SES staff for approval of all exceptions before including them in the application
All exceptions may be utilized Not an “either/or” decision Total amount of exceptions must equal the
amount by which MOE was reduced LEA responsible for supporting documentation
Unlike the stipulation in the 50% reduction, the resulting amount from the MOE exceptions are not viewed as moved or “freed-up” funds Expenditures were higher the prior year because of
this allowed exception – case closed
50% Reduction Option LEA may reduce their MOE by 50% of the
increase in Part B allocations Referred to as “Freed-up” This amount goes to activities that could be
supported with ESEA funds (34 CFR §300.205(b) It is just that – an option Affects, as in “Frees-up,” Local or State and
Local Funds Stays in effect until LEA increases its local
effort
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50% Reduction requirements
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Increase in federal part B 611 allocations from one fiscal year to the next Includes ARRA 611 funds 619 funds are not included
“Meets requirements” under the sec. 616 determinations
Has not had action taken against it by the SEA under IDEA section 616
Has not had responsibility for providing FAPE taken from it by the SEA
Has not been found by the SEA to have significant disproportionality under 34 CFR §300.646
50% Reduction Example
Special Education Services
In 2008, the LEA received a
sec. 611 allocation of 800,000
In 2009, the LEA received a
sec. 611 allocation of 900,000
AND an ARRA allocation for
sec. 611 of 750,000
900,000 + 750,000 = 1,650,000 –
800,000 = 850,000 * 50% = $425,000
50% Reduction affects MOE
Special Education Services
Remember: MOE is also a Target Not reducing Federal Expenditures
Back to the example: The LEA may reduce its expenditure of local, or State and
local, funds for FY 2009 by $425,000
The $425,000 must be expended for activities/programs allowable under the Elementary and Secondary Education Act (ESEA)
50% Reduction is Moved or “Freed-up” Funds
Special Education Services
Reduction is not a “savings” for the LEA Funds STILL have to be spent “Frees-up” funds by reducing the amount of local, or
State and local, funds it spends on the education of children with disabilities
Spent on activities or programs allowable under the Elementary and Secondary Education Act, or ESEA. Enhance or expand programs or activities for which the
LEA is already expending funds or to start up new activities or create new programs
Any expenditures for which the LEA uses its Impact Aid funds
LEA must expend “freed-up” funds the same year reduction is taken **LEAs are accountable for being able to demonstrate
HOW and WHEN these funds are expended, such as during an audit.
CEIS – Coordinated Early Intervening Services
Special Education Services
CEIS are services for students in kindergarten through grade 12, with a particular emphasis on students in kindergarten through grade 3, who are not currently identified as needing special education and related services, but who need additional academic and behavioral support to succeed in a general education environment
34 CFR §300.226(a)
Calculation of CEIS
Special Education Services
An LEA may use up to 15% of the amount it receives under Part B, both sections 611 and 619, for CEIS, less any amount reduced by the LEA pursuant to 34 CFR §300.205 (34 CFR §300.226(a))
Take 15% of the aggregated amounts of sections 611 and 619, including the 611 and 619 ARRA to determine CEIS
CEIS and 50% Reduction
Special Education Services
From the CEIS total, subtract any amount the LEA wants to reduce its MOE under section 300.205
If an LEA is REQUIRED to use the entire 15% available for CEIS because it has been identified with significant disproportionality under 34 CFR §300.646, then the LEA cannot reduce its MOE
CEIS Requirements with 50% Reduction
Special Education Services
The amount of funds expended by an LEA for CEIS must count toward the maximum amount of expenditures that the LEA may reduce under 34 CFR §300.205(a)
This means that, no matter how much is available for CEIS (up to 15%) or for MOE reduction under §300.205(a), the total amount expended on CEIS and MOE reduction together cannot exceed the lesser of the total amount available for MOE reduction under §300.205(a) or the amount available for CEIS See 34 CFR §§300.205(d) and 300.226(a)
Effects of 50% Reduction
Special Education Services
Remember: when an LEA reduces its MOE pursuant to 34 CFR §§300.204 or 300.205, the adjusted amount is the LEA’s new MOE level until the LEA, on its own, increases the level of special education expenditures, using local, or State and local, funds
Effects of 50% Reduction
Special Education Services
FY 2008 Effort 1,000,000 FY 2009 50% reduction 425,000 (1,000,000 – 425,000 = 575,000) Effort for FY 2009 575,000 Effort required for FY 2010 575,000
If the LEA expends $575,000 in FY 2010, Effort required for FY 2011 = 575,000 An MOE reduction under either of these provisions
does not constitute a failure to maintain MOE
Thoughts on the 50% Reduction Pros:
“Free-up” local funds for other ESEA activities Assist budget planning in meeting future MOE New MOE level continues until LEA increases
expenditures Cons (Considerations Really):
Additional reporting Must report how the “Freed-up” funds from the 50%
reduction was spent on other ESEA activities Only required for the year in which the reduction was taken
Reducing MOE obligations must not result in a reduction of special education services.
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Consequence of Not Meeting MOE
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LEA must pay difference back to US Dept. of Education with local funds Payment will be facilitated by KSDE One time penalty
Justifications for MOE Exception
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Upon submission of Part II LEA app, a justification text box will appear if MOE is not met
Enter justification in below format: Application Line you are using for the MOE test MOE Exception taken and amount MOE 50% reduction and amount List the supporting documentation
New LEA application will require the uploading of supporting documentation – PDF