This plan addresses what will occur when a Charter LEA does not meet the federal MOE requirements. Federal IDEA includes MOE as a requirement that spending levels for state and local funds must be maintained each year in order to qualify to receive federal funds to assist with the “excess cost” associated with providing services to children with disabilities. There are two MOE standards that must be met each year: • Eligibility Standard requires that, except in specified situations, a Charter LEA is only eligible to receive IDEA Part B funding in the upcoming fiscal year if the Charter LEA budgeted at least the same amount of local, or state and local funds, as it actually spent for the education of children with disabilities during the most recent year for which information is available (SEMB – current year budget compared to the last prior year actuals that MOE was met). • Compliance Standard requires that, except in specified situations, a Charter LEA should not reduce the level of expenditures for the education of children with disabilities from local, or state and local funding sources, below the level of those expenditures from the same funding source in the preceding fiscal year (SEMA – current year actuals compared to the last prior year that MOE was met). The federal Subsequent Years rule requires that the level of effort a Charter LEA must meet 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 Charter LEA’s actual reduced level of expenditures in the year in which it failed to maintain effort (Title 34 of the Code of Federal Regulations § 300.203(c)). Basically, the Subsequent Years rule is that a Charter LEA must have maintained at least the same level of special education expenditures as it did the preceding fiscal year, unless it did not meet the compliance standard in that year. If it did not meet the compliance standard in the prior fiscal year, then the standard for comparison is the last fiscal year the compliance standard was met for that method of compliance. The four methods to meet both eligibility and compliance standards are as follows: • Combined state and local expenditures; • Combined state and local expenditures on a per capita basis; • Local expenditures only; and • Local expenditures only on a per capita basis. A Charter LEA may reduce the level of expenditures below that of the preceding subsequent year only if the reduction is attributable to one or more of the following exceptions: 1. Voluntary departure, by retirement or otherwise, or departure for just cause, of special education or related service personnel; 2. A decrease in the enrollment of children with disabilities;
Chapter 10 – Fiscal Allocation Plan, Charter SELPA
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As of 04/06/2018
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