MOE FAQs

Question 1
Are legal costs considered an exempt reduction? I had higher costs in the subsequent year than I do in the test year.
Answer: No. Legal costs are not considered an exempt reduction. 

Question 2
I received an increase in State funding for special education. The increase allowed me to decrease my general fund contribution by the same amount. Is that an exempt reduction? 
Answer: No. A reduction in the MOE amount due to a reduction in the general fund contribution is not an allowable reduction. 

Question 3
Are reductions in expenditures due to the COVID-19 pandemic considered allowable? Although we still provided all IEP services, there were reductions in substitute costs and utilities, due to distance learning. 
Answer: No. These reductions are not considered allowable. 

Question 4
If I move expenditures from one State resource to another, will it affect my MOE? 
Answer: Provided that expenditures are coded to SACS Goal 5xxx, as required for these resources, and as appropriate for the students served, the allowable expenditures reclassified from one State Resource to another should still be captured in the Special Education Maintenance of Effort (MOE) reports provided in the SACS Software.

Although the reclassification on a dollar-for-dollar basis appears to be an equal exchange, there may be an effect to the LEA’s contribution amount that is also captured in the MOE reports. This is dependent upon the LEAs current contribution amounts, if any. The following example may provide clarity of this effect:

  1. Flintstone LEA has a special education MOE State and Local Total of $1,000,000. It has a Local Only Total of $250,000.
  2. Flintstone LEA has a general fund local contribution of $175,000 to Resource 6500, as the expenditures in the resource exceed the revenue by that amount.
  3. Flintstone LEA plans to reclassify $100,000 in qualifying expenditures from Resource 6500, Goal 5760 to Resource 7xxx, Goal 5760. The $100,000 includes the indirect cost, and the indirect rate used will be the same for both resources.
  4. The reclassification will credit Resource 6500, Goal 5760. It will debit Resource 7xxx, Goal 5760.
  5. The credit in Resource 6500 will provide a deduction of the LEA’s general fund contribution from $175,000 to $75,000. This is due to the fact that an additional revenue of $100,000 is used.
  6. The end result would be an identical special education MOE State and Local Total of $1,000,000. However, the Local Only Total will decrease to $150,000.
  7. As a result, Flintstone may no longer meet its MOE requirement using the Local Only Total, and Local Only Per Capita test. The amount dropped from $250,000 to $150,000 – due to the reduction of $100,000 general fund local contribution to Resource 6500.