Individuals with Disabilities Education Act & Maintenance of Effort

According to the Individuals with Disabilities Education Improvement Act (IDEA) of 2004, Sec.613 (a)(2) (A)(iii), and federal regulation 34 C.F.R. section 300.203, states must ensure that all Local Educational Agencies (LEA) budget and expend for the education of children with disabilities in local, or state and local funds, an amount which is at least the same in total or per capita, as the amount spent in the most recent fiscal year for which information is available. This is known as Maintenance of Effort (MOE).

The Office for Exceptional Children (OEC) is responsible to ensure each LEA meets IDEA MOE on an annual basis, in order to be eligible for IDEA Part B funding. With certain exceptions, IDEA Part B funds must not be used by an LEA 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 year. 34 CFR §300.203(a)

To determine if MOE has been met ODE annually compares the total district local or state and local expenditures as reported by the district to EMIS.

§ 300.204 Exception to maintenance of effort

Notwithstanding the restriction in § 300.203(a), an LEA may reduce the level of expenditures by the LEA under Part B of the Act below the level of those expenditures for the preceding fiscal year if the reduction is attributable to any of the following:
(a) The voluntary departure, by retirement or otherwise, or departure for just cause, of special education or related services personnel.
(b) A decrease in the enrollment of children with disabilities.
(c) The termination of the obligation of the agency, consistent with this part, 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—
(1) Has left the jurisdiction of the agency;
(2) Has reached the age at which the obligation of the agency to provide FAPE to the child has terminated; or
(3) No longer needs the program of special education.
(d) The termination of costly expenditures for long-term purchases, such as the acquisition of equipment or the construction of school facilities.
(e) The assumption of cost by the high cost fund operated by the SEA under § 300.704(c).

(Approved by the Office of Management and Budget under control number 1820–0600) (Authority: 20 U.S.C. 1413(a)(2)(B))

Other considerations regarding MOE

1. Errors in reporting Expenditures and/or ADM via EMIS to ODE.
2. Adjustments (also called Local Replacement)- § 300.205 Adjustment to local fiscal efforts in certain fiscal years.
(a) Amounts in excess.
Notwithstanding § 300.202(a)(2) and (b) and § 300.203(a), and except as provided in paragraph (d) of this section and § 300.230(e)(2), for any fiscal year for which the allocation received by an LEA under § 300.705 exceeds the amount the LEA received for the previous fiscal year, the LEA may reduce the level of expenditures otherwise required by § 300.203(a) by not more than 50 percent of the amount of that excess.
(b) Use of amounts to carry out activities under ESEA.
If an LEA exercises the authority under paragraph (a) of this section, the LEA must use an amount of local funds equal to the reduction in expenditures under paragraph (a) of this section to carry out activities that could be supported with funds under the ESEA regardless of whether the LEA is using funds under the ESEA for those activities.
(c) State prohibition.
Notwithstanding paragraph (a) of this section, if an SEA determines that an LEA is unable to establish and maintain programs of FAPE that meet the requirements of section 613(a) of the Act and this part or the SEA has taken action against the LEA under section 616 of the Act and subpart F of these regulations, the SEA must prohibit the LEA from reducing the level of expenditures under paragraph (a) of this section for that fiscal year.
(d) Special rule.
The amount of funds expended by an LEA for early intervening services under § 300.226 shall count toward the maximum amount of expenditures that the LEA may reduce under paragraph (a) of this section.

(Approved by the Office of Management and Budget under control number 1820–0600) (Authority: 20 U.S.C. 1413(a)(2)(C))

The comparison of FY12 to FY11 is currently underway.  We expect to compare FY13 to FY12 in January of 2014.  Districts that appear to have failed IDEA MOE will be notified via email.  OECs system for reviewing MOE is housed in the CCIP .  You can access it via the funding flyout menu in your district’s CCIP menu.  Instructions for the use of the system are available via the user’s manual tab in the MOE system.

Last Modified: 1/3/2014 4:49:56 PM