Maintenance of Effort IV-B Funding LEA Level Special Education Services Kansas Department of Education Special Education Services.

Maintenance of EffortIV-B Funding

LEA Level

Special Education Services

Kansas Department of Education


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)


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


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


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


Federal Funds and MOE

LEA cannot consider Federal Funds when calculating MOE (34 CFR §300.203(b)(3))


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.


Exceptions to MOE


Exceptions to MOE


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


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


Additional Guidance on MOE Exception


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


50% Reduction requirements


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


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


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


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


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


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


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


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


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


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.


Consequence of Not Meeting MOE


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


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

Maintenance of Effort IV-B Funding LEA Level Special Education Services Kansas Department of Education Special Education Services.

Documents

education of children

special education studenttests

special education purposes

moe requirement

idea funds

supplantmeeting moe

allowedso moe

greater moe