Local Educational Agency (LEA) Maintenance of Effort (MOE) Organizer
Meeting the Eligibility (Budget) Standard
Consequences of Not Meeting the Eligibility Standard
If an LEA fails to budget for the education of children with disabilities, at least as much as the LEA expended for that purpose from the same source, in the most recent year for which information is available, the LEA is not eligible for a federal Part B subgrant in the fiscal year for which the LEA is budgeting.
34 CFR §300.200. Condition of assistance. Describes the conditions under which an LEA is eligible to receive its IDEA funding. An LEA that receives IDEA funding must maintain effort under 34 CFR §300.203.
34 CFR §300.203 (a) Maintenance of effort. Eligibility standard. Describes the MOE requirements for the eligibility standard and clarifies that the LEA is not eligible to receive its grant if it has not budgeted to maintain effort.
34 CFR §300.221 Notification of LEA or State agency in case of ineligibility. Notes that the LEA or state agency is entitled to a hearing in the case of ineligibility, including for failing to meet the LEA MOE eligibility standard. If the LEA or state agency is ineligible for federal IDEA funds, the SEA and LEAs need to be aware of the implication of the LEA MOE eligibility standard as it relates to this process.
34 CFR §76.401 Disapproval of an application – opportunity for a hearing. Provides SEAs and LEAs with specific information regarding process and timelines for a hearing in the event that the LEA does not meet the LEA MOE eligibility requirement.
OSEP Guidance – Section E. Provides questions and answers on the final LEA MOE regulations that were released on April 28, 2015.
TA Center Resources
CIFR. LEA MOE Calculator. Allows SEAs and LEAs to determine whether the LEA MOE eligibility (budget) and compliance (expenditure) standards have been met by any of the four methods permitted by IDEA. The calculator assists users in identifying the appropriate comparison year and amount, accounts for exceptions and adjustments from current and past years, and incorporates the Subsequent Years rule. The tool also calculates shortfalls and repayment amounts and allows users to record repayment dates.