Introduction to LEA MOE Tool January 17, 2017

LEA MOE? Q: What’s she talking about? A: Local Educational Agency Maintenance of Effort, of course.

Purpose The purpose of the LEA MOE requirement is to ensure that LEAs provide the financial support necessary to make a free appropriate public education (FAPE) available to eligible children with disabilities.

How is MOE tested? In Washington state, MOE is tested using four (4) methods: Local funds only The combination of state and local funds Local funds only on a per capita basis The combination of state and local funds on a per capita basis. Generally, LEAs may not reduce the amount of local, or State and local, funds that they spend on the education of children with disabilities when compared to the preceding fiscal year.

Effective July 1, 2015 Four (4) clarifications to the LEA MOE methods were made by OSEP: Eligibility standard Compliance standard Subsequent years rule Consequences of LEA MOE failure

Clarification of Eligibility Standard Under the IDEA LEA MOE requirement, each LEA is required to budget at least the same amount of funds for the education of children with disabilities as it spent in previous years. LEAs must meet an eligibility standard — by budgeting at least the same amount as in previous years. Under the IDEA LEA MOE requirement, each LEA is required to budget and expend at least the same amount of funds for the education of children with disabilities as it spent in the previous year. LEAs must meet an eligibility standard — by budgeting at least the same amount as in the previous year — and a compliance standard — by expending at least the same amount as in the previous year. IDEA permits LEAs to meet each standard by any of four methods: total local funds, total state and local funds, local funds per capita, or state and local funds per capita. CIFR developed the LEA MOE Calculator to assist LEAs in meeting that requirement by providing a tool to: Document amounts of fiscal effort in an LEA for the education of children with disabilities using local funds only or the combination of State and local funds, and Determine whether that effort met the IDEA’s LEA MOE requirements.

Clarification of the Compliance Standard Under the IDEA LEA MOE requirement, each LEA is required to expend at least the same amount of funds for the education of children with disabilities as it spent in previous years. LEAs must meet the eligibility standard — by budgeting at least the same amount as in the previous year — and a compliance standard — by expending at least the same amount as in previous years.

Explanation of the Subsequent Years Rule Subsequent years rule states that to determine required level of effort, one must look back to the last year in which the LEA maintained effort, and The last year in which it maintained effort using the same method by which it is establishing compliance.

OSEP’s solution! Tah Dah! This sheet is a summary of the LEA’s fiscal efforts from FYs 2010–11 through 2019–20. This sheet is a summary of the LEA’s fiscal efforts from FYs 2010–11 through 2019–20. Enter Child Counts Enter Expenditure Amounts (Local only, State and Local) OSPI Staff has kindly populated this information for you

How does the Calculator work? First, the Calculator determines the Comparison Year for each method, determined by the most recent year in which the LEA met the MOE compliance standard for that method. This information is obtained from the Multi-Year MOE Summary worksheet.

Allowable MOE Exceptions There are five (5) allowable exceptions for MOE failure 300.204 : a) Voluntary departure, by retirement or otherwise, of special education and/or related service personnel. b) A decrease in the enrollment of children with disabilities. c) Termination of the obligation of an LEA to provide special education to a particular student with a disability that is exceptionally costly. Student may have left the LEA, aged out, or no longer needs the program. d) Termination of long-term costly purchases. e) The assumption of cost by the high cost fund operated by the SEA. 300.704

Exceptions… An Exceptions/Adjustments tab is available for each year. See Tabs 7, 10 ,13, etc.

Adjustments available for the lesser of Up to 15% of an LEA’s federal allocation used for Coordinated Early Intervening Services those districts with a Level 1 Determination, or 50% of the Section 611 federal allocation increase over the preceding year. Emphasis: Lesser of the two.

Adjustment for increase in IDEA allocation

Now it’s your turn Remember Enter you CCDDD # in Cell B1. Select the test results using the drop down in Columns E, G, I, and K. Remember The comparison for each column is the last time the LEA passed using that method of test. The LEA must only pass one of the tests to pass MOE for the year.

A sample including 2015-16 & 2016-17

2015-16 and beyond…………… The Calculator pulls in your LEA’s Local Total amount from the data you entered on the Tab 5,15-16 Amounts. The Calculator compares the 15-16 amount with the Comparison Year amount to determine if your LEA has met MOE. On each of the tabs titled xm-xm Amounts, the Projected Child Count and projected State budget are entered. This determines eligibility. At the conclusion of the school year, final Child Count is entered and Local expenditures and State expenditures. This determines compliance.

Consequences of LEA MOE Failure If an LEA fails MOE, SEA must repay Federal Government out of Non-Federal Funds (or non- accountable Federal Funds). Washington state requires repayment from LEA out of Non-Federal Funds (or non-accountable Federal Funds.

Tracking repayments

Disclaimer Information provided today is meant to supplement and not supplant reading bulletins and accompanying documents; guidance from the U.S. Department of Education; Chapter 392-172A WAC; Part 300 of the federal regulations; and, the Individuals with Disabilities Education Act. This presentation and/or materials: Should be viewed and applied by users according to their specific needs, Should be used as guidance, and Is not intended as legal advice.

Mary Ellen Parrish-Maryellen.Parrish@k12.wa.us Questions Mary Ellen Parrish-Maryellen.Parrish@k12.wa.us 360 725 6075 Except where otherwise noted, this presentation by Office of Superintendent of Public Instruction is licensed under a Creative Commons Attribution 4.0 International License.