Texas Register

RULE §109.3001Local Maintenance of Effort
ISSUE 11/01/2013
ACTION Proposed
Preamble Texas Admin Code Rule

(a)In accordance with the Texas Education Code, §7.021, the Texas Education Agency (TEA) shall administer and monitor compliance with education programs required by federal or state law, including federal funding and state funding for those programs.

(b)The following terms have the following meanings when used in this subchapter.

  (1)Maintenance of Effort (MOE) for a grant under the Individuals with Disabilities Education Act, Part B (IDEA-B)--This term has the meaning assigned by 34 Code of Federal Regulations (CFR), §300.203(a).

  (2)MOE for a grant under the No Child Left Behind Act (NCLB)--This term is generally defined by Public Law 107-110, Title IX, Part E, Subpart 2, §9521.

(c)Each local education agency (LEA) that expends federal IDEA-B or NCLB funds must comply with established MOE requirements developed in conjunction with federal statutes, regulations, and guidance from the United States Department of Education (USDE). The methods of determining compliance, the consequences of noncompliance, and allowable exceptions to the MOE requirements are described in the figures provided in paragraphs (1) and (2) of this subsection.

  (1)The specific MOE requirements for a grant under the IDEA-B are described in the IDEA-B LEA MOE Guidance Handbook provided in this paragraph.

Attached Graphic

  (2)The specific MOE requirements for a grant under the NCLB are described in the NCLB LEA MOE Guidance Handbook provided in this paragraph.

Attached Graphic

(d)Guidance provided in the handbooks described in subsection (c)(1) and (2) of this section will be updated annually as necessary by the commissioner of education to align with subsequent updates, modifications, and amendments to the statutory authority and USDE guidance.

(e)For determining compliance with MOE requirements, the TEA will use the handbooks provided in subsection (c)(1) and (2) of this section instead of:

  (1)the software in PEIMS EDIT+ containing a formula to allocate costs recorded in Program Intent Code 99, Undistributed, according to instructional FTEs (as reported in PEIMS) assigned to Basic and Enhanced Program Intent Codes; or

  (2)the software in EDIT+ containing a formula to allocate costs recorded in Organization Code 999, Undistributed.

(f)If the LEA receives School Health and Related Services (SHARS) reimbursements, funds received represent reimbursements to the LEA for school-based health services, which are provided to special education students enrolled in the Medicaid Program. Additional guidance concerning the treatment of SHARS direct and indirect cost reimbursements is documented in the IDEA-B LEA MOE Guidance Handbook provided in subsection (c)(1) of this section.

(g)To the extent that this section conflicts with any other commissioner or State Board of Education rule, including the Financial Accountability System Resource Guide, the provisions of this section control.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 18, 2013


Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: December 1, 2013

For further information, please call: (512) 475-1497

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