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New Guidance from the American Rescue Plan ESSER III on Maintenance of Equity (MoEquity) at the District Level By Kathy Dunn, Director of Professional Learning for State and Federal Programs, CCOSA
Overview of MoEquity In FYs 2022 (SY 2021-2022) and 2023 (SY 2022-2023), LEAs may not reduce: ■■ Per-pupil
state and local funding to high-poverty schools more than the total reduction in per-pupil funding to all schools (ED calls this “funding equity”), AND
■■ Per-pupil
FTEs to high-poverty schools more than the total reduction in per-pupil FTEs in all schools (ED calls this “staffing equity”).
■■ LEAs
must satisfy both tests.
Key Points in Maintenance of Equity (MoEquity) at the District Level ■■ Maintenance
of Equity (MoEquity) is a new fiscal rule under ARP ESSER that limits funding or staffing cuts to certain schools in 2021-2022 and 2022-2023.
■■ It
applies even if an LEA is maintaining or increasing its overall budget.
■■ ED
expects LEAs to calculate MoEquity “once it has final appropriated and allocated amounts” for each school
■■ It
applies to all LEAs that receive ARP ESSER funds, with limited exceptions
■■ LEAs
that are exempt from MoEquity are: ■■ LEAs
with a total enrollment of less than 1,000 students,
■■ LEAs
that operate only one school, and
■■ LEAs
that have only one school per grade span.
■■ For
MOEquity determinations in FY 2022 only, the USDE recognizes that LEAs may face certain one- time implementation challenges due to the enactment of the ARP Act in March 2021— when LEA budgeting was already underway in many places—and the impact of the pandemic that has resulted in significant ongoing uncertainty about school-level enrollment
for the 2021-2022 school year. Therefore, an LEA experiencing these circumstances may demonstrate that it is excepted from the MOEquity requirements for FY 2022 by certifying to the Department that it did not and will not implement an aggregate reduction in combined State and local per-pupil funding in FY 2022 (i.e., is not facing overall budget reductions). (Updated FAQ 32. https://oese. ed.gov/files/2021/08/Maintenanceof-Equity-updated-FAQs_ final_08.06.2021.pdf)
Identifying a District’s High Poverty Schools for MoEquity ■■ For
MoEquity purposes, highpoverty schools are the poorest 25% of schools in the LEA, with the USED rounding up for any decimal. For example, a district with 9 schools would have to consider 3 schools in the top 25% (rounding up from 2.25)
■■ SEAs
determine which poverty measures LEAs should use.
■■ SEAs
may choose from among the following measures: ■■ Census
data,
■■ Free
and reduced-price lunch eligibility,
■■ TANF
eligibility,
■■ Medicaid ■■ A
eligibility, or
composite of the above measures.
What is Included in Calculating Fiscal MoEquity? ■■ State
and local funding includes all sources of state and local funds the LEA has available for “current expenditures for free public education.” ■■ This
is a term defined by ESEA (Sec. 8101(12)).
■■ It
includes administration, instruction, attendance and health services, pupil transportation services, operation and maintenance, fixed charges and net expenditures to cover deficits for food services.
■■ It
excludes community services, capital outlay, and debt services.
■■ It
does not include federal funds or charitable contributions.
