Maintenance of Effort (MoE) & Maintenance of Equity (MoEQ) in the ESSERs

■ None of the ESSERs: Contain a Maintenance of Effort requirement at the local level.

■ All of the ESSERs: Contain a Maintenance of Effort (MoE) requirement at the state-level. (MoE for SPED and ESSA for LEAs has not been waived at this time, 3-25-21.)

■ ESSER III: Contains a new Maintenance of Equity (MoEQ) requirement which applies at both the state and local level, with *certain exceptions at the local level.

Local Level Maintenance of Effort (MoE) in ESSER, SPED, and ESSA

ESSER I, II, III

There is no Maintenance of Effort in any of the ESSERs at the local level. Impact Statement: While there is no required Maintenance of Effort at the Local Level in the ESSER laws, how the ESSER funds are expended could impact your Maintenance of Effort requirements in existing SPED and ESSA laws. Possible waivers for ESSA MoE and possible exceptions for IDEA MoE are listed in the bottom chart.

SPED

For SPED: The LEA must maintain 100% the level of expenditures from State and/or Local funds spent on special education and related services in EITHER the total expenditures of the LEA for special education and related services OR the per capita amount (state and local) spent on children receiving special education services (using the measure most favorable to the LEA). There is no waiver for SPED MoE, but an ”appeal” may be filed based on unusual exceptions.** There is no penalty assessed until MoE is not met in two consecutive years.

ESSA

For ESSA: An LEA must maintain effort by spending a minimum of 90% in EITHER the combined State and Local fiscal effort per student OR aggregate expenditures (using the measure most favorable to the LEA). Penalty issued IF the LEA fails to meet MoE in the current year AND ALSO failed to meet MoE for 1 or more of the 5 preceding fiscal years. [ESSA, Section 8521(b)] A waiver may be requested through the OSDE to the USDE. USDE may waive MoE (1-year waiver) for an LEA under certain conditions.

ESSA Possible Waivers for the LEA SPED Possible Waivers for the LEA

■ Covered ESEA programs @ 90% MoE: (Title I, Parts A & D; Title II, Part A; Title III, Part A; Title IV, Part B; Title V, Part B, subpart 2; and Title VI, Part A, subpart 1 – ESEA sections 8101(11), 6118(c), 8521(a).)

■ USDE might waive based on: 1) exceptional or uncontrollable circumstances; 2) precipitous decline in the revenue of the LEA; or 3) change to the organizational structure of the LEA. LEAs work with SEAs to apply to USDE for waivers if available.

■ IDEA, Part B @ 100% MoE:

■ USDE cannot Waive, but may grant Exceptions under these conditions:

1) a precipitous decline in revenue; or

2) a decrease in a high-cost expense

3) a decline in enrollment of students with disabilities LEAs work with SEAs to apply to USDE for waivers if available.