1. 1 Understanding IDEA and MOE The basics of maintenance of effort

2. 2 Maintenance of Effort MOE requirements have been around for awhile Feds allow certain flexibility School Districts should keep track of this from year to year. Forms to calculate are also available in conference documents and at: http://www.doe.mass.edu/sped/advisories/11_1ta.html http://www.doe.mass.edu/sped/advisories/11_1ta.html Administrative Advisory SPED 2008-1at: http://www.doe.mass.edu/sped/advisories/?section=admin http://www.doe.mass.edu/sped/advisories/?section=admin

3. 3 For the purposes of this presentation The presentation focuses on how the district shows that it is maintaining its state and local fiscal effort in the area of special education. IDEA considers that districts are meeting “non- supplanting” requirements if state and local effort is maintained. Therefore, this presentation focuses on maintenance of effort and does not use the terminology “non- supplanting” --- although it is covered.

4. 4 Examples of State and Local Funds Local Funds Funds appropriated by your local community for the district’s use. Includes c. 70 funds as they go through your community first. State Funds Funds coming directly from the state to the district. Includes circuit breaker reimbursements Grants funded by the state and administered by DESE.

5. 5 We’ll pretend this district STARTS in 2014 How much did the district spend on special education in FY2014? $100,000 in state funds $50,000 in local funds $75,000 in federal funds TOTAL = $225,000 Simple Maintenance of Effort = total spending from state and local funds =$150,000 Let’s call this sMOE.

6. 6 MOE can be demonstrated in the aggregate or per/student with disabilities 150 students w/disabilities (SWD) in FY2014 So sMOE (simple maintenance of effort)/SWD is either 150/$150,000 or $1,000/SWD.

7. 7 Simple Maintenance of Effort (sMOE) FY 2015 For FY2015, the district must spend at least as much on special education from state and local funds Either in the aggregate ($150K) …Or per/student w/disabilities (#students x $1,000). Let’s say there are 100 students with IEPs in FY2015. (NOTE: a decrease of 50 students)

8. 8 Simple Maintenance of Effort (sMOE) FY 2015 For FY2015, the district must spend either a total of $150K in state and local funds in the area of special education OR $100K (100 students x $1,000) in state and local funds on a per/student with disability basis. (fiscally prudent choice)

9. 9 Which would you choose? Using Per/Student? Student #s decreased from 2014 to 2015 Decreased student #s means MOE will be less using per/student In this case CHOOSE PER/STUDENT method. Using the Aggregate? If student #s increase from one year to the next, the Aggregate method will be less. In this case, student #s decreased – so this is not the MOE method to choose.

10. 10 How do the federal funds fit in? IDEA 2004 allows some of the federal funds to “supplant” state and local funds. Why? Because the Congress had promised to pay 40% of the costs of special education and it realizes it has not yet met that promise. So? So, 50% of NEW Federal Dollars can be treated as state and local funds until the federal money catches up to the promised level!

11. 11 How can federal money be treated as state and local money? NEW federal money only 50% of new money only To explain, we need to go back to spending in FY2014.

12. 12 How much did the district spend on special education in FY2014? $100,000 in state funds $50,000 in local funds $75,000 in federal funds TOTAL = $225,000 Simple Maintenance of Effort = total spending from state and local funds =$150,000

13. 13 How much federal money does the district get in FY2015? The district gets $90,000 in federal special education money. More than 2014 So, new money = ($90,000-$75,000) or $15,000 Remember we can use 50% of new money. 50% of $15,000 = $7,500

14. 14 Therefore, in FY2015, $7,500 of federal money can be used to “supplant” state and local money in meeting the MOE requirement. The sMOE requirement was $150,000 for FY2014, but since our student numbers decreased, we are aiming for $100,000 in state and local monies for FY2015. Even that looks hard with our state belt tightening, so we look to the offset of $7,500 to see if we can make it even easier on ourselves. $100,000-$7,500 = $92,500 -- that is the amount of the MOE that must be funded with state and local money. The remaining $7,500 can be funded with the offset federal money. We can call that combination of state, local, and offset federal money the final Maintenance of Effort, or fMOE that we want to budget for FY2015.

15. 15 If the SWD numbers increase, then it will be fiscally prudent for the district to demonstrate fMOE in the aggregate (as it will be the lower amount) If the SWD numbers decrease, however, the fMOE calculated per student will be less than the aggregate fMOE, and the district should choose this method to demonstrate fMOE. Demonstrate fMOE either in the aggregate or per/ student with a disability (SWD)

16. 16 Can the district spend more than it is required under the fMOE? Yes, our fictional district could actually spend $200,000 in state and local money (regardless of federal offset) in FY2015, HOWEVER, if it did, then the sMOE required amount would be higher for FY2016, as the district would be required to maintain its effort. If possible, it is the better fiscal choice to spend more federal money instead (if you have it).

17. 17 Interesting info on the federal offset The federal offset is CUMULATIVE. If the offset is used, it can only be used once. The advisory 2008-1 calculated the cumulative offset for every district from FY97 up to FY2007. From that point forward, we expected districts to maintain the calculation locally. Suppose the offset cumulatively was $62,000 for our fictional district heading into 2015. The district could have used all of the offset to reduce the state and local burden from $100K to $38K (100-62=38). The sMOE going into 2016 would then be 38K, and the cumulative offset would be ZERO. In essence, starting fresh again with 2016.

18. 18 final Maintenance of Effort (fMOE) (more) fMOE can be demonstrated by the district by spending either in the Aggregate (the whole pie) Or per/student with an IEP (#students x an equal amount). There is no individual student entitlement implied by these calculations. fMOE is about the “state and local” spending planned for special education.

19. 19 Find out your district’s accumulated federal offset The ESE has calculated it for you up to FY2007: http://www.doe.mass.edu/sped/advisories/moe.html Check the full ESE advisory because there are other exceptions that this Powerpoint does not address. http://www.doe.mass.edu/sped/advisories/?section=admin Calculate your federal offsets each year, and add them to the accumulated offset or, if you use federal funds from this offset to meet your state and local MOE, then subtract from the cumulative amount.

20. 20 Potential exceptions District Accountability Level 4 or 5 --- You may not use any new federal offset funds for the year or years you have that accountability level. If you use 15% of the funds for instructional supports --- that will impact how much you can use of the federal offset funds. If you receive a written finding of non- compliance for disproportionality you will be required to spend funds for specific remediation.

21. 21 Potential additional flexibility Allowable exceptions –Voluntary departure or disciplinary departure of staff –Termination of costly obligation –Termination of large expenditure Four actual ways to figure MOE –State and local aggregate –State and local per/pupil –Local aggregate –Local per/pupil The state cannot calculate this for districts.

22. 22 Questions?