IDEA-B and NCLB LEA Maintenance of Effort (MOE)

1. IDEA-B and NCLB LEAMaintenance of Effort (MOE) Texas Education Agency (TEA)

2. IDEA-B LEA MOE 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.

3. Four Test Methods LEA must pass one of four tests: • Total State and Local Expenditures • Per Capita State and Local Expenditures • Total Local Expenditures • Per Capita Local Expenditures

4. Federal Statutory Exceptions • Voluntary departure of personnel • Decrease in enrollment • Termination of an exceptionally costly program • Termination of costly long-term purchases • Assumption of cost by the high cost fund

5. MOE Voluntary Reduction • 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

6. State Reconsiderations • Significant PEIMS Errors • Must change compliance status • Will not change PEIMS data • Replaces PEIMS in FFCR database ONLY

7. State Reconsiderations • Federal Funds Which May be Considered as State or Local Funds • Legislatively Mandated Changes to Account for Funds

8. State Reconsiderations • Significant Timing Issues • SHARS federal reimbursement expended in Special Education

9. 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

10. IDEA-B Eligibility Requirement 34 CFR 300.203(b)(2) Requires LEAs to BUDGETthe 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.

11. 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

12. NCLB LEA MOE 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.

13. Covered Programs • 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

14. Four Test Methods LEA must pass one of four tests: • Total State and Local Expenditures. • Total State and Local Expenditures per-pupil for refined average daily attendance (ADA). • Total State and Local Expenditures per-pupil for Membership. • Total State and Local Expenditures per-pupil for Enrollment.

15. Fiscal Effort per Student • Refined Average Daily Attendance • Membership • Enrollment (In Enrollment)

16. Exceptions/Reconsiderations • 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

17. 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

18. NCLB LEA MOE Waiver • Receipt of USDE waiver DOES NOT constitute compliance with MOE requirement • Noncompliance impacts all covered programs

19. Corrective Action • 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

20. Additional Questions? For questions, please send an email to Compliance@tea.state.tx.us