ARRA Funds Q _ A by shimeiyan4

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									                                 ARRA Funds Q & A
                         TEA | Division of IDEA Coordination



1. Must districts meet all the targets on all indicators in the State Performance
Plan (SPP) to reduce their MOE?

      Yes, districts must meet all targets on all indicators in the SPP to
      reduce their MOE. Districts may have a determination of Meets
      Requirements but still not meet all the targets on all the indicators
      in the SPP, therefore, they cannot 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.




2. In what year may districts reduce their MOE by 50% of the increase, if they
are eligible?

      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.


      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.


              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
                                        ARRA Funds Q & A
                                       Webinar April 21, 2009

                                 TEA | Division of IDEA Coordination
      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.


              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).




3. Will the 2008 or 2009 determinations be used to determine the flexibility in
reduction of MOE?

       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 in the
      coming days and will use the 2009 determination for flexibility in
      reduction of MOE. However, if a district has a determination level
      of ‘meets requirements’, the district still must meet all targets on all
      of the SPP indicators to reduce their maintenance of effort.




4. How will superintendents and ESC executive directors be informed of the
flexibility in reduction of MOE?

      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.


                                       ARRA Funds Q & A
                                      Webinar April 21, 2009

                                TEA | Division of IDEA Coordination
5. 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?

         Yes. Expenditures that are allowable with the formula IDEA-B and
       formula IDEA-B preschool are also allowable with ARRA funds.




6. Are the Exceptions to MOE found in 300.204 available to districts if they do
not meet all the targets on all the SPP indicators? (exceptions such as ‘voluntary
departure, decrease in enrollment, assumption of high cost funds, etc.)

       Yes, districts may take advantage of the Exceptions to MOE found
       in 300.204 even if they do not meet all the targets on all the SPP
       indicators. 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.




7.   Must an LEA set aside 25% to pay for students who are residentially placed?

       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.




8. How do fiscal agents report expenditures of ARRA funds if they flow the
money to member districts?


       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.
                                    ARRA Funds Q & A
                                   Webinar April 21, 2009

                             TEA | Division of IDEA Coordination

								
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