maintenance of effort

Maintenance of Effort

Federal Cross-Cutting

&Special Education

MoEDaniel LunghoferSupervisor, School District/ESD Accounting

What is Maintenance of Effort?

It is a presumption that Local and State dollar spending levels remain constant between years, so that Federal dollars are not used to replace State & Local dollars for most programs.

Maintenance of Effort - WASBO 2011 Spokane 2

What is Maintenance of Effort?

• Applies to Federal programs with “supplement, not supplant” requirements.

• There are consequences for not meeting MoE requirements.


MoE Tests• OSPI performs two MoE tests upon

final submission of all F-196 financial information.

• Results are communicated with program-related OSPI staff and districts who do not maintain effort.

• Preliminary models are available at http://www.k12.wa.us/safs/tt/tools.asp


TEST #1

FEDERAL CROSS-CUTTING

MAINTENANCE OF EFFORT

Applicable Programs• Title I Part A• Title I Part B Subpart 3 (Even Start)• Title I Part D (Neglected & Delinquent

programs)• Title I Part F (Comprehensive School Reform)• Title II Part A (Improving Teacher Quality)• Title II Part D (Ed Tech/E2T2)• Title III Part A (English Acquisition)• Title IV Part A (Safe and Drug-Free)• Title IV Part B (21st Century Learning Centers)• Title VI Part B Subpart 2 (Rural Education)


Federal Cross-CuttingStatutory Authority: 34 C.F.R. §299.5Paragraph (a): An LEA whose aggregate

or per-student expenditures for State/Local funds for a given year are at least 90% of the prior year have maintained effort.

Or:FY 10–11 ÷ FY 09–10 ≥ 0.90


Federal Cross-Cutting34 C.F.R. §299.5(d): Only expenditures from

State/Local funds may be used, including administration, instruction, attendance/health services, pupil transportation, operation and maintenance of plant, and net expenditures to cover food service deficits.

May not include community services, capital outlay, debt service, or any expenditure from funds provided by the Federal government.


Federal Cross-Cutting• Let us look at the Excel-based

Federal Cross-Cutting MoE test.


Consequences of Failing• If a district does not meet the 90%

threshold and no waiver is granted, the district’s current year Federal allocations for applicable programs will be reduced by the failure percentage.

• For example, if a district winds up with an 87% from both tests and does not get a waiver, they will see their current year allocations reduced by 3% (90% minus 87%).


Exceptions/Waivers• Specific authority was granted to utilize

State Fiscal Stabilization Fund dollars as State/Local instead of Federal for MoE purposes for 2008–09, 2009–10, and 2010–11.

• Waivers may be granted for the following:– Exceptional or uncontrollable circumstances

such as a natural disaster; or– A precipitous decline in the financial

resources of the district.


TEST #2

SPECIAL EDUCATIONMAINTENANCE OF

EFFORT

Special Education MoE• As it applies to Special Education,

Maintenance of Effort is a year-over-year measure of the expenditures in Program 21.


Special Education MoE• Statutory Authority: 34 C.F.R. §300.203Paragraph (b): A district has maintained

effort if it budgets* the same in aggregate or per-pupil for the education of children with disabilities in a given fiscal year as it did in the prior fiscal year, either with state/local funds or just local funds only.

Cannot use money provided from Federal Government (i.e. IDEA allocations).

*OSPI uses final F-196 numbers for determining if districts maintained effort. Maintenance of Effort - WASBO 2011

Spokane 14

MoE Test• Let us look at the Excel-based

Special Education MoE test.


Special Education MoEException: 50% rule (34 C.F.R. §300.205)If, in any fiscal year, the amount of a

district’s allocation under IDEA exceeds the amount of the allocation for the prior year, the district may reduce its MoE requirement by up to 50% of the difference.

A district must have “Met Requirements” under a program review to utilize this flexibility. (34 C.F.R. §300.608)


Special Education MoE50% rule, exception (34 C.F.R.

§300.205(d)):The amount a district spends on

Coordinated Early Intervening Services (CEIS), which is limited to 15% of a district’s IDEA allocation, counts against the 50% maximum.


50% Rule/CEIS Example #1FY 2008-09

FY 2009-10

IDEA Allocation $900,000 $1,000,000Increase $100,00050% of Increase $50,000CEIS (15%) max $150,000

Amount spent on CEIS Amount available for MOE

$150,000 $0 ($50,000 - $150,000)$100,000 $0 ($50,000 - $100,000)$50,000 $0 ($50,000 - $50,000)$30,000 $20,000 ($50,000 -

$30,000)$0 $50,000 ($50,000 - $0) 18Maintenance of Effort - WASBO 2011

Spokane

50% Rule/CEIS Example #2

FY 2009-10

FY 2010-11

IDEA Allocation $1,000,000 $2,000,000

Increase $1,000,000

50% of Increase $500,000CEIS (15%) max $300,000Amount spent on

MOEAmount available for CEIS

$0 $300,000 ($300,000 - $0)$100,000 $200,000 ($300,000 -

$200,000)$150,000 $150,000 ($300,000 -

$150,000)$300,000 $0 ($300,000 - $300,000)$500,000 $0 ($300,000 - $500,000)

19Maintenance of Effort - WASBO 2011 Spokane

Consequences of Failure• If a district fails to maintain effort

and one of the exceptions does not apply, the district will be required to repay to OSPI the amount supplanted, using non-Federal dollars.

• There is an opportunity to appeal to OSPI.


Exceptions• The voluntary departure of special

education or related personnel.• A decrease in the number of children with

disabilities (considered in per-pupil test).• Termination of obligation of LEA to

provide special education services to a high-cost student.

• Termination of costly expenditures for long-term purchase such as equipment or construction.


QUESTIONS?

Daniel Lunghofer (360) [email protected]

Full Moon Rising, April 2011

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