Special Education Program Finance

1
Special Education Program Finance

• April 15, 2010

2
Agenda Overview

• Maintenance of Fiscal Effort (MOE)
• IDEA 2004 Update
• Fiscal Year 2009 2010 Process

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• Maintenance of Fiscal Effort (MOE)

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What is Maintenance of Effort?

• Part B funds must not reduce State and local
  spending
• Supplement not supplant

5
Who is affected?

• Every ISD, LEA and PSA that is allocated and
  directly expends IDEA funds (Part B) Including
  Pre School Funds, for the provision of Special
  Education programs and services
• Any PSA or LEA that does not receive IDEA (Part
  B) funds is not affected

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Determination of MOE

• Calculate effort on a total cost basis
• Calculate effort on a per capita basis (head
  count or FTE) Birth to 26
• 50 Flexibility under 300.205
• Exceptions under 300.204
• Early Intervening Services under 300.226

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Components of MOE

• IDEA Part B Flowthrough Allocation
• New allocation, not expenditures
• ISDs net of transfers to LEAs PSAs
• Special Education Actual Cost Report
• SE 4096 Section 52 53 amounts
• Include MSD tuition
• Exclude Indirect, Bd of Ed, Capital Outlay, Other
  OM, etc.

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Components of MOE

• Transportation Expenditure Report
• SE 4094 Section 52 53 amounts excluding
  amortization
• Other Special Education Costs
• Other SE expenditures that are not reportable on
  the SE 4096

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Components of MOE

• December 1 Head Count use Dec 1, 2009 for
  Fiscal 2009-10
• September 1 FTE Count use Sept 1, 2009 for
  Fiscal 2009-010 (Special Education only)

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Maintenance of Effort Worksheet

• Requires data input into up to 13 fields
• Automatically calculates optimum amount before
  exceptions to document Maintenance of Effort
• Illustrates all possible calculations
• Page for Input of Exceptions to MOE
• Posted to the MDE Website for use as a planning
  tool

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MOE Electronic Worksheet

• Michigan.gov/MDE
• Click Offices
• Click Special Education Early Intervention
  Services
• Click Finance Management (Program Finance)

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• Exceptions to Maintenance of Effort

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300.204 Exceptions to MOE

• Voluntary departure of personnel, by retirement
  or otherwise, or departure for just cause
• Decrease in the enrollment of children with
  disabilities
• Termination of an exceptionally costly program or
  service to a particular child with a disability
• Termination of costly expenditures for long-term
  purchases
• Assumption of cost by the high cost fund operated
  by the SEA N/A

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MOE 50 Flexibility

• LEAs may reduce their local, or state and local,
  expenditures otherwise required by the LEA MOE
  requirements by up to 50 of their increased
  allocation (611 only) over the previous year
• The LEA must spend the freed up local or, state
  and local, funds on activities that are
  authorized under ESEA/NCLB

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MOE 50 Rule Calculation
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Coordinated Early Intervening Services (CEIS)

• LEAs may spend up to 15 of their Part B, Section
  611 and 619 current year allocation for CEIS
• This is calculated from the total current year
  allocations (611 and 619) as opposed to any
  increase in allocation
• May fund CEIS activities by using only 611
  funds, only 619 funds, or a combination of both

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Special Education Flowthrough Early
Intervening Calculation
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Interaction Between Maintenance of Effort (50
Flexibility) and Coordinated Early Intervening
Services (CEIS)
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Special Rules Interaction

• 613(a)(2)(C)(iv) (50 Flexibility)
• The amount of funds expended by a local
  educational agency under subsection (f) shall
  count toward the maximum amount of expenditures
  such local educational agency may reduce under
  clause (i).
• 613(f) (CEIS 15)
• less any amount reduced by the agency pursuant to
  subsection (a)(2)(C)

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Interaction Between MOE and EIS

• The effect of the combination of the
• coordinated early intervening services language
  and
• maintenance of effort 50 flexibility
• is that
• the election of one reduces dollar for dollar the
  availability of the other.

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Interaction Between MOE and CEISExample 1
Prior Year Allocation (611)
900,000 Current Year Allocation (611)
1,000,000 Current Year Allocation (619)
100,000 Increase (611 only) 100,000 Max
Available for MOE 50,000 Reduction (50
flexibility) Max Available for CEIS (15)
165,000
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Interaction Between MOE and EISExample 1 cont.

• LEA sets aside for CEIS 165,000
• Max MOE 50 Rule 50,000
• 50 Rule that can be used 0
• LEA Sets aside for CEIS 30,000
• Max MOE 50 Rule 50,000
• 50 Rule that can be used 20,000

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Interaction Between MOE and CEISExample 2

• Prior Year Allocation (611) 1,000,000
• Current Year Allocation (611) 2,000,000
• Current Year Allocation (619) 200,000
• Increase (611 only) 1,000,000
• Max Available for MOE 500,000 Reduction
  (50 flexibility)
• Max Available for CEIS (15) 330,000

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Interaction Between MOE and CEISExample 2 cont.

• LEA Use of MOE 50 flexibility 0
• Max EIS to Set aside 330,000
• CEIS that can be used 330,000
• LEA Use of MOE 50 flexibility 100,000
• CEIS that can be used 230,000
• LEA Use of MOE 50 flexibility 330,000
• CEIS that can be used 0

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Free Appropriate Public Education

• LEAs must establish and maintain programs that
  provide Free Appropriate Public Education (FAPE)
• LEAs not maintaining FAPE will not be able to
  reduce MOE under the 50 flexibility

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IDEA 2004
50
FAPE

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Significant Disproportionality

• States must determine if LEAs identification of
  children with disabilities shows significant
  disproportionality based on race and ethnicity
• LEAs found with significant disproportionality
  must reserve the maximum amount of IDEA funds
  (15 of 611 and 619 funds) received under
  613(f) to provide coordinated early intervening
  services

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IDEA 2004
MAX
Significant

Early Intervening
Disproportionality
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State Enforcement

• LEAs must meet State requirements and the States
  performance plan (SPP)
• LEAs that dont will not be able to reduce MOE
  under the 50 flexibility

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IDEA 2004
Meet State Requirements
50

31
IDEA 2004
Meet SPP Targets
50

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MOE Process Fiscal Year 2009 - 10

• MDE OSE/EIS will import reported information
• SE 4096 and 4094
• Dec 1 and Sept 1 FTE counts
• Special Education Allocation (611) - regular and
  ARRA
• Preschool Allocation (619) regular and ARRA
• Coordinated Early Intervening Services
• Spreadsheet will make all calculations

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MOE Process Fiscal Year 2009 - 10

• Districts that Maintained Effort
• Will be notified in writing that they passed
• Will receive a copy of their calculations for
  their records
• This information should be reviewed for accuracy
• All concerns should be reported to MDE

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MOE Process Fiscal Year 2009 - 10

• Districts that did not Maintain Effort
• Will be notified in writing that more information
  is needed
• Will receive a copy of their calculations
• Technical assistance with exceptions to MOE will
  be coordinated through each ISD

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MOE Process Fiscal Year 2009 - 10

• Shortfall after exceptions
• ISD will be contacted for payment from local
  funds, the lesser of
• The shortfall amount
• The total allocation
• LEA must repay that amount to the ISD
• The ISD or LEA/PSA has a right to appeal

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Maintenance of Effort

• Questions?

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Contact Information

• John Andrejack [phone]
• andrejackj_at_michigan.gov
• Deb Nowlen [phone]
• nowlend_at_michigan.gov