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Special Education Listserv

Subject: Maintenance of Effort (MOE) Adjustment Amounts

Source: Shelley Witherbee, Director, Funds Management

Intended Audience: Special Education Directors, Financial Administrators, ECSE Administrators, Superintendents

Date: May 28, 2009

IDEA allows an LEA to reduce its level of state and/or local expenditures by up to fifty percent of the increase in the LEA's total allocation from one school year to the next.  The opportunity for a significant MOE adjustment will occur in FY10 due to additional Part B ARRA allocation amounts in FY10.  The Division has posted a spreadsheet listing the maximum Part B IDEA MOE adjustment amounts allowed for each district at http://www.dese.mo.gov/divspeced/Finance/documents/FY0RegARRA.pdf.

Remember, any Part B expenditures for Early Intervening Services (EIS) must be deducted from the adjustment amount.  For convenience, the maximum EIS amount allowed has also been listed on the spreadsheet.  This district is not mandated to spend any funds towards EIS.

It is important to remember that overall expenditure amounts for the Special Education program are not being reduced if the MOE adjustment is taken; expenditures are simply being shifted from state and/or local sources to federal sources.  That means that freed-up state and local dollars will likely need to be replaced by federal funds in order to operate the Special Education program at its current level.  The district will not incur any supplant violations as long as it continues to meet MOE at the new lower threshold.

Freed-up state and local dollars must be spent on ESEA activities (non-special education) and reported to the Division. This is the first time a district has had to report non-special education expenditures on the Part B FER to the Division. A list of ESEA activities is posted at:

http://www.dese.mo.gov/divspeced/Finance/documents/ESEA_000.pdf