1. ESEA Programs | December 2018
Supplement not Supplant (SNS) Demonstration under Title I, Part A Maintenance of Effort
ESEA Programs | December 2018

2. Supplement not Supplant
Webinar Agenda
Supplement not Supplant
Changes under the Every Student Succeeds Act
Methodology, Examples, and Demonstration Process
Monitoring SNS
Maintenance of Effort
Requirements under the Every Student Succeeds Act
Annual Requirement
Waiver
Monitoring

3. Reminder Information in this webinar applies to Title I, Part A requirements only. SNS tests under other Title programs have not changed. For additional information related to other programs, contact your ESEA Regional Contact.

4. Changes under the Every Student Succeeds Act ESSA
The test for SNS shifts the review of Title I, Part A expenses and forgoes the presumptions test to providing an allocation methodology demonstration for State and local funds. State and local fund focus: SNS focuses on, and requires demonstration of, the LEA’s methodology for allocating State and local (non-Federal) funds to Title I schools, to ensure that each is receiving the same amount it would have if it was not receiving Title I assistance.

5. Changes under ESSA, cont.
The SNS test reviews the manner in which LEAs allocate State and local funds to ensure Title I schools receive all funds they would have received had they not participated in Title I. Shift focus from Title I funding to State and local funding.
NCLB: Use of Title I Funds
ESSA: Allocation of State and Local Funds

6. Budget document suggestion
Methodology - Budget
Budget document suggestion
The district’s budget methodology for allocating State and local funds to Title I schools ensures each such school receives all the State and local funds it would otherwise receive if it were not a Title I school.

7. Methodology
Methodology: the manner in which State and local (non-Federal) funds are allocated to schools.
CDE recognizes the following methodologies for distributing State and local (non-Federal) resources. LEAs may demonstrate that distributions to schools meet SNS requirements based on:
Characteristics of the students;
Staffing and supplies;
A combined approach, or,
Other, as adopted by the LEA.

8. Demonstration Process – Frequency
LEAs are required to provide their demonstration requirements to CDE one time for the duration of the Title I, Part A program under ESSA, unless the LEA revises its methodology for allocating State and local (non-Federal) resources. In other words, the LEA must only demonstrate its methodology for allocating State and local (non-Federal) resources once, unless and until Congress reauthorizes the ESEA, so long as no substantive changes are made to the LEA’s methodology.

9. Demonstration Process - Substantive
A substantive change may occur when an LEA shifts from one methodology to another. Minor changes to the value attached to a variable within the methodology are likely not substantive.
If an LEA that originally implemented a methodology based on characteristics of the students shifts to one based on staffing and supply needs, a substantive methodology change has occurred. The LEA would need to submit the demonstration requirements to CDE for review.
If an LEA is implementing a methodology based on characteristics of the students and schools serving ELs, previously allocated an additional $500/student, will now be allocated $525/student, a substantive change has not occurred.

10. Demonstration Process
CDE is responsible for verifying that each LEA receiving Title I, Part A funds complies with ESSA SNS demonstration requirements.
To ensure all LEAs in Colorado meet these requirements, each is required to submit the following:
An assurance stating the LEA is in compliance with the provisions of section 1118(b) of ESSA;
An indication of the type of methodology the LEA has adopted and is implementing in regard to the allocation of State and local (non-Federal) funds to all schools; and,
A narrative description of the methodology or a reference to the LEA’s Financial Transparency document within which the methodology is described.

11. Demonstration Process - Assurance
The LEA assures that it is in compliance with the supplement, not supplant provisions within section 1118(b) of, and referenced throughout, the Every Student Succeeds Act.

12. Demonstration Process – Methodology Type
The LEA assures that it has adopted and implemented the following methodology to allocate State and local (non- Federal) funds to all schools in the LEA, regardless of Title I status (select only one):
Distribution of State and local (non-Federal) resources based on the characteristics of the students
Distribution of State and local (non-Federal) resources based on staffing and supplies
Distribution of State and local (non-Federal) resources based on a combination of the characteristics of the students and staffing and supplies
Other, as adopted and implemented by the LEA

13. Demonstration Process – Methodology Description
The LEA has provided a narrative description of either the:
LEA’s methodology or a reference to the LEA’s Financial Transparency document in which the methodology is described; or,
Plan to come into compliance with the provisions within section 1118(b) no later than September 30, 2018.
Note: The LEA may submit a narrative description, as selected, in the text box provided or attach an addendum.

14. Demonstration Process, cont.
Upon adoption or implementation of a revised methodology, including making substantive changes to the original methodology, it is incumbent upon the LEA to provide an updated demonstration of compliance. In years subsequent to initial demonstration, LEAs will be required to submit an assurance, within the Consolidated Application for ESEA Funds, that no substantive changes have been made.

15. Demonstration Process – Single School Code
LEAs that have a single school code (i.e. elementary, middle and high school levels have the same school code) are required to submit an assurance, but need not provide additional demonstration requirements.

16. Frequently Asked Questions
Q: May we use our comparability data to meet SNS requirements?
A: No, while comparability and SNS requirements both examine how the LEA distributes State and local funds/resources to schools, they are separate tests that measure different aspects of the supplemental nature of Title I, Part A funds.
Q: Our district only has one school, do I have to submit anything?
A: Yes. All districts must submit the assurance that they are in compliance with the provisions under section 1118(b). However, LEAs that have only one school code do not need to provide any additional information regarding the methodology.

17. SNS Monitoring
For FY 18-19, CDE will not collect further information regarding the allocation demonstration methodology. CDE will use this year to determine how verification of Title I SNS will be conducted in future years.

18. Guidance and Resources
SNS Support
Guidance and Resources
cde.state.co.us/fedprograms/supplementnotsupplant-0
Questions regarding demonstration requirements, process, or timeline:
Barb Vassis, Office of ESEA Programs
Questions regarding description of methodology, budget process, or Financial Transparency documents:
Aaron Oberg, Office of School Finance

19. Maintenance of Effort (MOE) under ESSA
Under ESSA, the purpose of Title I, Part A is to “provide all children significant opportunity to receive a fair, equitable, and high-quality education, and to close educational achievement gaps.”
Due to the intended supplemental nature of ESEA funds, section 1118 of the ESSA requires each LEA to maintain its own State and local fiscal effort, in accordance with section 8521, as a condition of receiving ESEA funds. The MOE requirement ensures that State and local funds are expended at the same, or similar, level from year to year, enabling Federal funds to serve as a supplemental resource for LEAs.
MOE requirements under ESSA apply to the following covered programs:
Title I, Part A – Improving Basic Programs Operated by Local Educational Agencies
Title I, Part D – Prevention and Intervention Programs for Children and Youth Who Are Neglected, Delinquent, or At-Risk
Title II, Part A – Supporting Effective Instruction
Title III, Part A – English Language Acquisition, Language Enhancement, and Academic Achievement
Title IV, Part B – 21st Century Community Learning Centers
Title V, Part B – Rural and Low-Income School Programs
Title VI, Part A – Indian Education

20. MOE Annual Requirement
Section 8521(a) of ESSA stipulates that LEAs may receive funds under a covered program for any fiscal year only if the SEA finds that either the combined fiscal effort per student or aggregate State and local expenditures of the LEA was not less than 90% of the combined fiscal effort or aggregate expenditures for the second preceding fiscal year.
LEAs have submitted an assurance in the ESEA General Assurances form to acknowledge the LEA is in compliance with applicable statutory requirements.
LEA expenditures to be included or excluded in determining MOE are defined by Federal regulations.
CDE will run the preliminary review of ESEA MOE in late Spring, based on finalized December financial data pipeline submissions for the preceding fiscal year.
The fiscal effort per student is the amount of state and local expenditures spent on a per-pupil basis, while the aggregate expenditures are the total state and local expenditures at the LEA-level.
The preceding fiscal year is the federal fiscal year, or the 12-month fiscal period most commonly used in a state for Official reporting purposes, prior to the beginning of the federal fiscal year in which funds are available.

21. A waiver may be granted if the need is based upon:
MOE Waiver
Section 8521(c) permits LEAs that the SEA determines to be out of compliance to work with the SEA to apply for a USDE waiver from MOE requirements.
A waiver may be granted if the need is based upon:
Occurrence of an exceptional or uncontrollable circumstance, or
Precipitous decline in the financial resources of the LEA
CDE would count the year in which a waiver was received as a year of maintaining effort and the LEA would not be penalized for receiving a waiver.
If an LEA has failed to meet the MOE requirements, CDE will support the LEA in the waiver application process before taking any action to reduce the LEA’s allocation under the covered programs. If the USDE grants the LEA’s MOE waiver request, the LEA has effectively maintained effort for that fiscal year.

22. MOE Reduction of Allocation
If an LEA fails to meet the MOE requirements and does not receive a waiver from the USDE, CDE must reduce the LEA’s allocation under the covered programs in the exact proportion to the LEA’s failure to meet the MOE requirement.
Prior to ESSA, CDE was required to reduce the LEA’s allocation for failure to maintain effort as compared to the second preceding fiscal year only.
ESSA added a look-back provision requiring the reduction be based on whether the LEA failed to maintain effort in a given fiscal year and in one or more of the 5 immediately preceding fiscal years.
a single failure to maintain effort within a five-year period may not result in the reduction of the LEA’s allocation

23. MOE Monitoring
MOE determinations will not require further action for FY monitoring.
CDE will:
Review the amount of unspent funds that LEAs carry forward annually, to identify any developing trends
Work with districts to ensure that funds are expended and drawn down to prevent allocation reductions from failure to meet annual MOE requirements.

24. Guidance and Resources
MOE Support
Guidance and Resources
Additional information related to the maintenance of effort requirements may be accessed here
cde.state.co.us/cdefinance/sffpptablecontents
LEAs may also contact their Regional Contact in the Office of ESEA Programs for more information.
Guidance provided by the U.S. Department of Education may be accessed here: www2.ed.gov/programs/titleiparta/fiscalguid.pdf