IDEA - Maintenance of Effort (MOE) Requirement
The term “Maintenance of Effort,” often shortened to “MOE,” refers to the requirement placed upon many federally funded grant programs that the State Education Agency (SEA) and Local Education Agencies (LEA) demonstrate that the level of local and state funding remains relatively constant from year to year. Failure to meet MOE requirements may result in the LEA losing eligibility to receive IDEA formula funding and requiring an LEA to repay funds, using a non-federal source, to the SEA, who is required to send the penalty funds to the US Department of Education. At the local level, IDEA requires that LEAs expend the same amount of local and state funding for special education and related services as it expended in the previous fiscal year (34 CFR §300.203). There are a limited number of provisions in IDEA to allow for decreases in an LEA’s MOE from one fiscal year to the next. The Department of Education monitors every LEA in Indiana every year regarding IDEA MOE compliance.