6/6/12

Today, the Texas Education Agency communicated updated guidelines about monitoring local education agencies’ maintenance of effort compliance for fiscal years 2010 and 2011 (school years 2009-2010 and 2010-2011).  TEA indicated that an error had been made in its calculation methodology for these fiscal and school years in determination letters mailed on or about January 19, 2012, to LEAs that appeared to be out of compliance.  Also, it was mentioned that adjustments in methodology for the calculations will be made by TEA to analyze the total and per-pupil amounts of local funds expended, in addition to the total and per-pupil amounts of state and local funds expended.  As a result, TEA will redo it monitoring calculations for MOE for these years and send determination letters to LEA’s that still appear to be out of compliance. 

Also, TEA communicated a major change in interpretation concerning the required spending level for LEAs that reduced spending for fiscal year 2012 and school year 2011-2012.  The U.S. Department of Education rescinded an earlier interpretation referenced in a guidance letter dated June 16, 2011, regarding required MOE spending levels following a fiscal and school year that a LEA reduced spending.   The draftguidance received by TEA in April 2012will require a school district or open-enrollment charter schoolto return to the higher level of supportthat the LEA should have spent for compliancein the fiscal year it reduced spending (therefore a LEA is not permitted to "reset the MOE level" by reducing spending for one fiscal year and refunding federal IDEA B funds for the one year).  As a result, corrective actions may be required by your school district or open-enrollment charter school to avoid year-over-year reductions in federal IDEA B funds for noncompliance with MOE, if your LEA reduced spending in fiscal year 2012 below the level required for compliance (in an attempt to reset the relative MOE spending levels for future fiscal years and school years).   

To access the TO THE ADMINISTRATOR ADDRESSED letter on this topic dated June 6, 2012, click on the link below.

http://www.tea.state.tx.us/index4.aspx?id=2147507067

To read related Business News articles, click on the link below.

http://www.tasbo.org/resources/business-news-list/743-part-2-insights-on-how-funding-obligations-are-shifting-to-local-school-districts

http://www.tasbo.org/resources/business-news-list/763-tea-sends-results-of-redo-idea-b-moe-calculations-for-school-year-2009-2010