IDEA-B and NCLB LEA Maintenance of Effort (MOE) Texas Education Agency (TEA)

34 CFR § 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 personnel b) Decrease in enrollment c) Termination of an exceptionally costly program d) Termination of costly long-term purchases e) 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 (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 BS 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

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