Texas Register

RULE §109.3001Local Maintenance of Effort
ISSUE 04/02/2021
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 Every Student Succeeds Act (ESSA) [No Child Left Behind Act (NCLB)] --This term is generally defined by Public Law 114-95, Title VIII, Part F, Subpart 2, §8521 [107-110, Title IX, Part E, Subpart 2, §9521].

(c)Each local educational [education] agency (LEA) that expends federal IDEA-B or ESSA [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 outlined in the statutes specified in subsection (b)(1) and (2) of this section [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.]

[Figure: 19 TAC §109.3001(c)(1)]

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

[Figure: 19 TAC §109.3001(c)(2)]

(d)If an LEA provides a Medicaid-eligible student with a Medicaid service that is specified in the student's individualized education program, the LEA may request reimbursement for that service through Medicaid's School Health and Related Services (SHARS) program. The LEA is reimbursed the federal portion of the amount it expended on the service based on the Federal Medicaid Assistance Percentage rate Medicaid has defined. In accordance with 34 CFR, §300.154(g)(2), if the reimbursement is expended on special education services, that expenditure must be excluded from the calculation of state/local expenditures for purposes of calculating IDEA-B LEA MOE compliance (34 CFR, §300.154(g)(2)).

[(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.]

(e)[(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 March 22, 2021


Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: May 2, 2021

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

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