9/1/11

The U.S. Department of Education recently clarified certain provisions related to the federal Maintenance of Effort regulations for students with disabilities.  The clarification was in response to an inquiry from Dr. Bill East, Executive Director, National Association of State Directors of Special Education in February 2011 that is excerpted below.

"An LEA fails to meet their maintenance of effort.  As a result, the LEA pays the State education agency (SEA) an amount equal to the shortage.  The SEA then returns the money to the U.S. Department of Education.

Question: In determining the base amount that the LEA must spend the following year, do they maintain the base amount from the previous year, or reset the base amount to reflect the lower amount actually spent the previous year?"

In a June 2011 letter, Dr. Melody Musgrove, Director of the Office of Special Education Programs, U.S. Department of Education,  responded, a school district “...is not obligated to expend at least the amount expended in the last fiscal year for which it met the maintenance-of-effort requirement. In other words, each year’s [district] maintenance of effort obligation is based on the actual amount expended in the immediate prior fiscal year.” Dr. Musgrove added that her response "is provided as informal guidance and is not legally binding, but represents an interpretation by the U.S. Department of Education of the IDEA in the context of the specific facts presented."  

The clarification is not a "loosening of the rules" in that school districts remain subject to financial penalties for not complying with the maintenance of effort regulations. However, the informal guidance clarifies the specific time frames for the application of the MOE regulations in relation to state and federal oversight agencies' monitoring activities.  The Office also released information on waivers requested by certain states, indicating such requests are being reviewed on a case-by-case basis (see U.S. Department of Education guidance on IDEA MOE waivers at http://www2.ed.gov/policy/speced/guid/idea/moe-waivers.pdf).

To access the National Association of State Directors of Special Education in February 2011 letter, click on the link below.

natlspeddirectors-blog20110217.pdf (388.47 KB) 

To access the U.S. Department of Education Office of Special Education Programs June 2011 letter, click on the link below.

usdeptofedsped20110616.pdf (531.45 KB) 

To access the Texas Education Agency Special Education Maintenance of Effort template, click on the link below.

http://www.tea.state.tx.us/index4.aspx?id=4073

Need more information?  Look for a workshop coming to a location near you on TASBO's training calendar.  TASBO's popular workshop Federal & State Compliance Issues will be presented again from September 2011 through May 2012 in locations across the state of Texas.