Individuals with Disabilities Education Act (IDEA) Maintenance of Effort Danna Sanders Phone:

Maintenance of Effort (MOE) “ Funds provided to an LEA under Part B of the Act must not be used to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds below the level of those expenditures for the preceding fiscal year” – 34 CFR § (a)

Maintenance of Effort (MOE) The LEA must spend at least the same amount of local or combined state and local funds as it did in the previous fiscal year o In Total or Per Child Each LEA is required to meet MOE to be eligible for IDEA funds o Including districts in a cooperative Compliance document submitted annually to DOE

IDEA Eligibility & MOE To be eligible for IDEA funds, the LEA must budget the same amount or more of State and Local either in total or per child for the upcoming year as they expended in State and Local in total or per child in the most recent fiscal year for which data is available.

IDEA Eligibility & MOE Eligibility Standard: Looks at the second preceding year (most recent year information is available at time of application (ie. FY2014))

IDEA Compliance & MOE Compliance Standard: Looks at the preceding years actual expenditures.

What is included in MOE? YesNo Local Expenditures  State or Local Expenditures for Coordinated Early Intervening Services (CEIS) State Expenditures  IDEA  Medicaid Direct Reimbursements  Impact Aid  Other Federal Expenditures *Based on Special Education expenditures NOT revenues!

Four Ways to Meet MOE 1.Total Local Expenditures 2.Total State and Local Combined 3.Local Expenditures per Capita 4.Combined State and Local Expenditures per Capita *Only Required to meet one of the tests above, to make MOE.

The LEA must spend the same amount or more of Local in current year either in total or per child as compared to the last fiscal year the LEA met MOE compliance based on local funds only either in total or per child to be in compliance.

State and Local Expenditures LEA’s should have a reasonable method to budget and then track special education expenditures to the appropriate funding source.

Possible Strategies for Budgeting Budget/Spend local funds sufficient to meet the established local MOE amount. If the district needs to meet the combined State/local MOE amount, budget/spend state funds sufficient to meet the established combined MOE amount. Budget/Spend IDEA funds to meet costs in excess of the established MOE amounts. Next use State funds, if available, after meeting MOE requirements and expending IDEA funds (goal is to minimize spending local funds). Finally budget/spend local funds only as needed to meet remaining SPED obligations. (Any additional local spending raises the local MOE threshold).

MOE Compliance Form Completed by each district, even those in a cooperative Submitted annually to the SD Department of Education MOE Compliance Summary box shows if the LEA met their MOE requirement If the LEA did not meet MOE on any of the 4 tests, they must complete the Allowable Exceptions

MOE Exceptions 1. The voluntary departure, by retirement or otherwise, or departure for just cause, of special education or related services personnel. A reduction in force, such as contract non-renewal or staff lay-off, is not an allowable exception. 2. A decrease in the enrollment of children with disabilities. The LEA must still meet MOE on a per child amount.

MOE Exceptions (continued...) 3. The termination of the obligation of the agency to provide a program of special education to a particular child with a disability that is an exceptionally costly program, as determined by the SEA, because the child has either: a. left the jurisdiction of the agency, b. reached the age where there is no longer an obligation to provide FAPE, and/or c. no longer needs the program of special education Examples of costs that may be associated with a particular student include things such as a full-time aide, private placement costs, and transportation. 4. The termination of costly expenditures for long‐term purchases. Examples may include the acquisition of equipment.

Justification of Exceptions Multiple exceptions may apply LEA is required to submit detailed information about each exception. Must be able to show that allowable exceptions were previously paid for out of local or state funds. If exceptions are approved, LEA maintains new reduced MOE expenditure level.

Consequences of Non Compliance What happens if the district does not provide the required level of fiscal effort and does not have an allowable exception? – The district must pay the DOE an amount equal to the amount of the MOE short-fall. – This amount must be paid from local or State funds. – DOE is required to send the money to the federal government.

Please Note: Maintenance of Effort is based on expenditures, not revenues. Lack of Revenues is not an allowable exceptions. If necessary the district may need to transfer general funds into Special Ed in order to be in compliance with MOE.

Questions?