Individuals with Disabilities Education Act, Part B, Maintenance of Effort Requirement for Fiscal Years 2010 and 2011

 

Word Version

June 6, 2012

TO THE ADMINISTRATOR ADDRESSED:

SUBJECT:      Individuals with Disabilities Education Act, Part B, Maintenance of Effort Requirement for Fiscal Years 2010 and 2011
                            (School Years 2009–2010 and 2010-2011)

The purpose of this letter is to inform local educational agencies (LEAs) of the status of the Texas Education Agency’s (TEA’s) review of fiscal years 2010 and 2011 data for determination of compliance with the maintenance of effort (MOE) requirement for programs funded under the Individuals with Disabilities Education Act (IDEA), Part B, as amended and reauthorized. This letter also provides background information regarding the statutory requirements involved in determining MOE.

IDEA MOE Requirement

The US Department of Education (USDE) makes IDEA funds available to assist the states in covering the excess costs of providing special education and related services to children with disabilities. For LEAs to be eligible to receive IDEA funding, they must comply with the MOE requirement; that is, they may not use IDEA, Part B, funds to reduce the level of expenditures from state and/or local funds for educating children with disabilities below the level of those expenditures for the preceding fiscal year.

Federal Methodology for Determining MOE

In order to meet the IDEA, Part B, MOE requirement in any fiscal year, an LEA is required to expend state and/or local funds at 100% of the level at which it expended funds on special education in the preceding fiscal year. Federal law provides the following four methods for testing whether an LEA has met the IDEA, Part B, MOE requirement:

  • The total amount the LEA expended in local funds must equal or exceed the amount it expended from local funds for special education during the previous fiscal year.
  • The per-pupil amount the LEA expended in local funds must equal or exceed the amount it expended per pupil from local funds for special education during the previous fiscal year.
  • The total amount the LEA expended in state and local funds must equal or exceed the amount it expended from state and local funds for special education during the previous fiscal year.
  • The per-pupil amount the LEA expended in state and local funds must equal or exceed the amount it expended per pupil from those sources for special education during the previous fiscal year.

TEA’s Adopted Methodology for Determining MOE

In determining compliance with MOE requirements for fiscal year 2009, TEA considered only the total and per-pupil amounts of state and local funds that had been expended. In determining MOE for fiscal year 2010 and beyond, TEA will also consider the total and per-pupil amounts of local funds that were expended. The MOE calculations for fiscal years 2010 and 2011 are based on USDE’s June 16, 2011, letter that an LEA that reduced local special education spending could permissibly maintain that lower level of spending in following years.

MOE for Fiscal Year 2010 (School Year 2009–2010): New Timeline

On January 19, 2012, TEA mailed a preliminary letter of determination to those LEAs determined to be noncompliant with IDEA MOE requirements for fiscal year 2010. In response to feedback from LEAs, TEA determined that an error had been made in its calculation. TEA revised its calculation and will be issuing a revised preliminary letter of determination to all LEAs on or around June 6, 2012. 

For those LEAs whose revised preliminary letter of determination still indicates that the LEA is noncompliant, TEA will perform an additional level of review of allowable exceptions before making a final determination of the LEA’s compliance with the MOE requirement. This final determination, including the notice of any amount due, will be communicated in late July 2012.

MOE for Fiscal Year 2011 (School Year 2010–2011)

On or about July 31, 2012, TEA will mail a preliminary letter of determination to those LEAs determined to be noncompliant with IDEA MOE requirements for fiscal year 2011. LEAs will then have the opportunity to submit data pertaining to allowable exceptions to TEA. The agency will then review the exceptions data submitted before making a final determination of the LEA’s compliance with the MOE requirement. This final determination, including the notice of any amount due, will be communicated in mid-September 2012.

MOE for Fiscal Year 2012 (School Year 2011–2012)

In spring 2013, TEA will mail preliminary determination letters to those LEAs determined to be noncompliant with IDEA MOE requirements for fiscal year 2012. It is important to note that TEA received new MOE draft guidance from USDE in April 2012 rescinding the calculation procedures previously referenced in the June 16, 2011, USDE letter. This new draft guidance, once finalized, may be followed in the calculation of the fiscal year 2012 IDEA MOE. The major change is that after a reduction in special education spending, the LEA is required to return to the prior, higher level of special education funding.  This means that the level of special education spending that the LEA must meet in the year after it had reduced spending (and failed to maintain effort) is the level of support that it should have met in the prior year, not the LEA’s reduced spending in the prior year.

For Further Information

Additional information on the following related topics is available on the Division of Federal Program Compliance Maintenance of Effort page:

  • Details regarding exceptions to the MOE requirement as well as consequences of noncompliance
  • The IDEA MOE template used to determine compliance for fiscal years 2010 and 2011
  • A detailed description of past and current MOE methodology, as employed by both TEA and the USDE

If you have any questions regarding IDEA MOE, please contact the Division of Federal Program Compliance at (512) 463-9127 or FPC_Compliance@tea.state.tx.us

Sincerely,

Cory Green, Chief Grants Administrator

Office for Grants and Fiscal Compliance

Page last modified on 5/22/2013 11:28:26 AM.