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ARRA Funds Q & A IDEA B

ARRA Funds Q & A IDEA B. Update. Question: Must districts meet all the targets on all indicators in the State Performance Plan (SPP) to reduce their MOE? Answer: Districts must meet all the targets on the compliance indicators (9, 10, 11, 12, and 13) in the SPP to reduce their MOE.

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ARRA Funds Q & A IDEA B

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  1. ARRA Funds Q & AIDEA B Update TEA | Division of IDEA Coordination

  2. Question: Must districts meet all the targets on all indicators in the State Performance Plan (SPP) to reduce their MOE? Answer: Districts must meet all the targets on the compliance indicators (9, 10, 11, 12, and 13) in the SPP to reduce their MOE. In accordance with 34 Code of Federal Regulations (CFR) §300.608, “if a local education agency (LEA) does not meet the targets in the state’s performance plan, the LEA is prohibited from reducing maintenance of effort (MOE) under 34 CFR §300.203 for any [this] fiscal year. TEA | Division of IDEA Coordination

  3. Question: In what year may districts reduce their MOE by 50% of the increase, if they are eligible? Answer: The 2009-10 MOE (set by expenditures in 2008-09) may be reduced by 50% of the increase. A district who reduces their MOE has now set a new MOE baseline. TEA has received additional guidance from OSEP. See the amended information on the next slide for the revised answer for D-7 from the OSEP Q&A. TEA | Division of IDEA Coordination

  4. OSEP Q&A RevisedD.7 D-7.        How can an LEA determine that it is eligible to reduce its state and local effort by up to 50 percent of the increase in its subgrant allocation?  (Revised April 13, 2009) The first step for an LEA that is considering taking advantage of this flexibility is to compare the total Federal subgrant allocation the LEA received under the Part B Grants to States program in FY 2008 with the total subgrant Grants to States allocation they expect to receive in FY 2009 (including both the regular Part B LEA Grants to States subgrant allocation and any Part B IDEA Grants to States ARRA funds that the LEA receives).  If the total Federal subgrant allocation under the Part B Grants to States program received by an LEA in FY 2009 exceeds the amount received by that LEA in FY 2008 under that program, the LEA may be eligible to reduce the level of local, or state and local, special education expenditures otherwise required, by up to 50 percent of this increase. TEA | Division of IDEA Coordination

  5. D.7 Continued There are other provisions of the IDEA that limit whether an LEA may reduce local effort under IDEA section 613(a)(2)(C) (34 CFR §300.205).  Under IDEA section 616(a) (34 CFR §300.600(a)(2)), SEAs are required to make determinations annually about the performance of each LEA using the following categories:  Meets Requirements, Needs Assistance, Needs Intervention, and Needs Substantial Intervention.  Under 616(f) (34 CFR §300.608(a)), if in making its annual determinations, an SEA determines that an LEA is not meeting the requirements of Part B, including meeting targets in the state’s performance plan, the SEA must prohibit that LEA from reducing its MOE under IDEA section 613(a)(2)(C) for any fiscal year.  Therefore, an SEA must prohibit an LEA from taking advantage of the MOE reduction under IDEA section 613(a)(2)(C) if the LEA’s determination is Needs Assistance, Needs Intervention, or Needs Substantial Intervention. TEA | Division of IDEA Coordination

  6. D.7 Continued Also, IDEA section 613(a)(2)(C)(iii) requires an SEA to prohibit an LEA from reducing its MOE if the SEA has taken responsibility for providing a FAPE in the LEA because the LEA is unable to establish and maintain programs of FAPE, or the SEA has taken action against the LEA under IDEA section 616.  Finally, an LEA that is required to use 15 percent of its IDEA Part B allocation on CEIS because the SEA identified the LEA as having significant disproportionality under 34 CFR §300.646, will not be able to reduce local MOE under IDEA section 613(a)(2)(C). TEA | Division of IDEA Coordination

  7. Question: Will the 2008 or 2009 determinations be used to determine the flexibility in reduction of MOE? Answer: The 2009 determinations will be used to determine the flexibility in reduction of MOE. OSEP has told states to use their most current determinations. The State will make the 2009 determinations later in May and will use the 2009 determination for flexibility in reduction of MOE. TEA | Division of IDEA Coordination

  8. Question: How will superintendents and ESC executive directors be informed of the flexibility in reduction of MOE? Answer: A TAA letter regarding public reporting will be disseminated soon. The letter includes information about the flexibility in reduction of MOE. Also, this Q&A document will be sent to the ESC executive directors to disseminate to their regional superintendents. TEA | Division of IDEA Coordination

  9. Question: As of June 4, 1997, P.L. 105-17 authorized that IDEA-B funds may be combined in a Title 1 school wide campus budget in an amount equivalent to the proportion of funding for students with disabilities attending the school wide campus. Will the IDEA-B ARRA funds be eligible for this school wide program option? Answer: Yes. Expenditures that are allowable with the formula IDEA-B and formula IDEA-B preschool are also allowable with ARRA funds. TEA | Division of IDEA Coordination

  10. Question: Are the Exceptions to MOE found in 300.204 available to districts if they do not meet all the targets on all the SPP compliance indicators? (exceptions such as ‘voluntary departure, decrease in enrollment, assumption of high cost funds, etc.) Answer: Yes, districts may take advantage of the Exceptions to MOE found in 300.204 even if they do not meet the targets on all the SPP compliance indicators (9, 10, 11, 12, and 13). However, the district may reduce their MOE based solely on the amount of reduction for the exception. The MOE cannot be reduced by 50% of the increase in their IDEA funds. TEA | Division of IDEA Coordination

  11. Question: Must an LEA set aside 25% to pay for students who are residentially placed? Answer: No. The 25% set aside is calculated on the tentative base entitlement. The ARRA funds are calculated based on the increase in population and poverty, therefore the base does not increase. TEA | Division of IDEA Coordination

  12. Question: How do fiscal agents report expenditures of ARRA funds if they flow the money to member districts? Answer: • If the funds are flowed through the SC2000 due to an SSA change, then the “transferred to” LEA (or new fiscal agent) can apply and will receive their own NOGA and will need to file the ER. • If a Fiscal Agent flows funds to a member district through COC 6493, then the fiscal agent must report through the ER. TEA | Division of IDEA Coordination

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