Maintenance of Effort (MOE) in Special Education Funding

Maintenance of Effort for Special Education April 11, 2014 4/11/14 Office of Special Education 1

MOE Fiscal Year (FY) Comparisons For Grant 2014 (FY 2015) Comparing FY12 (SY 2011 2012) to FY13 (SY 2012 2013) To meet MOE, the LEA is required by IDEA to expend as much or more State and/or local funds in FY13 as they did in FY12 4/11/14 Office of Special Education 2

Program Management http://www.mde.k12.ms.us/special-education/special-education-grants-and-funding 4/11/14 Office of Special Education 3

Maintenance of Effort (MOE) in Individuals Disabilities Education Act (IDEA) 300.203 - 300.204 Funds provided to LEAs under Part B of the Act must not be used to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds below the level of those expenditures for the preceding fiscal year. An LEA may reduce the level of expenditures by the LEA under Part B of the Act below the level of those expenditures for the preceding fiscal year if the reduction is attributable to any one of the following five (5) reasons: 4/11/14 Office of Special Education 4

IDEA Exceptions for LEA NOT Meeting MOE 1. The calculations (utilizing the FETS data transmitted to the MDE) are incorrect. 2. The amount is lower due to the voluntary departure, by retirement or otherwise, or departure for just cause, of special education or related services personnel, who were replaced by qualified, lower-salaried staff. 3. There was a decrease in enrollment of children with disabilities for FY12 (SY 2011- 2012), which resulted in a reduction of teacher units needed to serve students with disabilities. 4/11/14 Office of Special Education 5

IDEA Exceptions for LEA NOT Meeting MOE 4. An exceptionally costly special education program provided to a particular child with a disability because the child (1) has left the jurisdiction of the LEA; (2) has reached the age at which the obligation to provide a FAPE has terminated; or (3) the program is no longer needed. 5. Costly expenditures for long-term purchases, such as the acquisition of equipment or the construction of school facilities, were terminated during FY12 (SY 2011 2012). 4/11/14 Office of Special Education 6

MOE Calculations from the Office of School Financial Services 4/11/14 Office of Special Education 7

MOE Exception 1 CODING/CALCULATION ERRORS Explain the error in detail Attach supporting documentation from the district financial system 4/11/14 Office of Special Education 8

MOE Exception 1 Example Mississippi Department of Education MOE AMOUNT Office of Special Education $5,049.42 MAINTENANCE OF EFFORT CHART FOR FY 15 Justification for (1) Coding/Calculation Errors, (2) Reduced Child Count or (3) Termination of Costly Expenditures School District: _Midnight School District 2011-2012 Description of Expenditure Retirement contributions District Code #:_08115___ Total Amount $3,238.00 Coding error: Retirement contributions were charged to Function 1220 in error. Coding error: Health Insurance premiums were charged to Function 1220 in error Coding error: Life Insurance premiums were charged to Function 1220 in error Coding error: Transportation cost were charged to Function 2610 in error 2012-2013 Total Amount Difference Justification/Explanation $2,000.00 $1,238.00 Health Insurance premiums $3,000.00 $2,052.00 $948.00 Life Insurance premiums $885.00 $743.00 $142.00 Private Placement Transportation Cost $9,421.00 $6,400.00 $3,021.00 Must provide documentation for each amount. TOTAL $5,349.00 DIRECTIONS: (1)Describe the expenditurefor 2011-12 and report the total amount. (2) Explain the justification for reduction for 2012-13 and report the total amount. (3) Subtract the total amount for 2012-13 from total amount from 2011-12 to obtain the difference. Jason Hightower_____________ April 11, 2014 Superintendent s Signature (Blue Ink) MDE APPROVED: ___________________ ____________________ _____________________ DIVISION DIRECTOR OFFICE DIRECTOR II BUREAU DIRECTOR Date 4/11/14 Office of Special Education 9

MOE Exception 2 RETIREMENT/VOLUNTARY DEPARTURE OF STAFF List the name of each teacher/s who retired or departed during or at the end of the 2011-2012 school year. Report the total salary and benefits paid from State and local funds for each of the teachers listed. List the name/s of the replacement teacher employed for the 2012-2013 school year. Report the salary and benefits paid from State and local funds for each of the replacement teacher/s. 4/11/14 Office of Special Education 10

MOE Exception 2 Example $5,049.42 Mississippi Department of Education MOE AMOUNT Office of Special Education JUSTIFICATION FOR MAINTENANCE OF EFFORT FOR FY 15: RETIREMENT OR DEPARTURE OF STAFF School District: _Midnight School District ________________________________________ District Code #:____08115____________ 2011-2012 Teacher & Benefits $$ Qualified Lower Salaried Staff** Mary Jones Audrey Shaifer $75,895.20 Roscoe Brown Total Salary 2012-2013 Replaced By Total Salary & Benefits $$ Justification/Explanation ** Difference $15,700.00 Ellen Davis $14,500.00 Mary Jones retired. $1,200 $75,800.00 Audrey Shaifer left to take new position. $ 95.20 Janika Money $34,508.45 Not Replaced $0.00 Janika Money resigned and students were served by other Special education teachers. TOTAL $34,508.45 $35,803.65 DIRECTIONS: (1)Report the name of the teacher for 2011-12 and the total salary. (2) Report the name of the replacement for 2012-13 and the total salary. (3) Subtract the total salary for 2012-13 from total salary from 2011-12 to obtain the difference. **If not replaced by qualified, lowered salaried staff, explain how students with disabilities were served; attach additional narrative if necessary. ____Jason Hightower Superintendent s Signature (Blue ink) DIVISION DIRECTOR OFFICE DIRECTOR II BUREAU DIRECTOR ______________________ ___ April 11, 2014 April 11, 2014 ______ Date MDE APPROVED: ___________________ ____________________ _____________________ 4/11/14 Office of Special Education 11

MOE Exception 2 Non-allowable exceptions for #2 (retirement or voluntary departure): Contract non-renewal Staff lay-off 4/11/14 Office of Special Education 12

MOE Exception 3 Decrease in the enrollment of children with disabilities Explain why there is a reduction in the child count between SY 2011-2012 and SY 2012-2013 Explain how the reduced child count reduced the number of teacher units Provide supporting documentation (Child Count and TU Edit Reports from MSIS) 4/11/14 Office of Special Education 13

MOE Exception 3 Calculation Decrease in enrollment A = amount of state/local expenditures on MOE spreadsheet for SY 2011-2012 B = December 1, 2011 Child Count C = A/B for the per pupil cost D = December 1, 2012 Child Count E = D-B for the decrease in students with disabilities Multiply the per pupil cost (C) by the current year s decrease in students with disabilities (E) The product will be your allowable exception amount 4/11/14 Office of Special Education 14

MOE Exception 3 Example State and/or Local Funds expended in FY12 = $489,036.72 and FY13 = $452,977.68 A = $489,036.72 B = 121 C = A/B = $489,036.72/121 = $4,041.63 D = 109 E = B-D = 121-109 = 12 Allowable Exception = (12)($4,041.63) = $48,499.05 MOE Exception Allowed 4/11/14 Office of Special Education 15

MOE Example 3 Justification Form Example Mississippi Department of Education MOE AMOUNT Office of Special Education $5,049.42 MAINTENANCE OF EFFORT CHART FOR FY 15 Justification for (1) Coding/Calculation Errors, (2) Reduced Child Count or (3) Termination of Costly Expenditures School District: _Midnight School District 2011-2012 Description of Expenditure Decrease in the number of students with disabilities. Number of students in 2011- 2012 was 121. Per pupil allocation is $4,041.63 District Code #:_08115___ Total Amount $489,036.72 Number of students with disabilities in 2012-2013 is 109. Difference of 12 students. 12 X $4,041.63 2012-2013 Total Amount $440,537.67 Difference Justification/Explanation $48,499.05 TOTAL $48,499.05 DIRECTIONS: (1)Describe the expenditurefor 2011-12 and report the total amount. (2) Explain the justification for reduction for 2012-13 and report the total amount. (3) Subtract the total amount for 2012-13 from total amount from 2011-12 to obtain the difference. Jason Hightower_____________ April 11, 2014 Superintendent s Signature (Blue Ink) MDE APPROVED: ___________________ ____________________ _____________________ DIVISION DIRECTOR OFFICE DIRECTOR II BUREAU DIRECTOR Date 4/11/14 Office of Special Education 16

MOE Exceptions 4 and 5 TERMINATION OF COSTLY EXPENDITURES An exceptionally costly special education program provided to a particular child with a disability because the child (1) has left the jurisdiction of the LEA; (2) has reached the age at which the obligation to provide a FAPE has terminated; or (3) the program is no longer needed. NOTE: relates to a High Cost Pool MS does not have a High Cost Pool at this time. Costly expenditures for long-term purchases, such as the acquisition of equipment or the construction of school facilities, were terminated during the previous year (FY12). District should contact the Office of Special Education if considering the use of 4 and 5 above. 4/11/14 Office of Special Education 17

MOE Not Met CONSEQUENCES Project application will not be reviewed. Allocation will be reduced by amount of MOE not met. 4/11/14 Office of Special Education 18

MOE Final Thoughts Remember: Justification requires approval from OSE and supporting documentation. ALL districts must have submitted justifications no later than May 30th 4/11/14 Office of Special Education 19

Letter from OSEP The letter from OSEP included in the MOE package relates to Consolidated Appropriations Act, 2014 Signed January 17, 2014 Effective for 2014 Part B Grants Relevant Provision: That the level of effort a local educational agency must meet under section 613(a)(2)(A)(iii) of IDEA, in the year after it fails to maintain effort is the level of effort that would have been required in the absence of that failure and not the LEA s reduced level of expenditures. 4/11/14 Office of Special Education 20

MAINTENANCE OF EFFORT 4/11/14 Office of Special Education 21

Contact Information Office of Special Education Bureau of Data and Fiscal Management Ellen Davis Burnham, Bureau Director Office of Fiscal Management Audrey Shaifer, Office Director Division of Program Management Mary Bobbitt, Division Director 601-359-3498 4/11/14 Office of Special Education 22