§ 300.205 Adjustment to local fiscal efforts in certain fiscal years.

Plain English summary

This section allows LEAs that receive an increase in IDEA Part B funds over the prior year to reduce their required local expenditure maintenance by up to 50% of that excess amount, provided they redirect an equivalent amount of local funds to ESEA-eligible activities. However, SEAs must prohibit this reduction for any LEA that cannot maintain FAPE programs or that is under enforcement action, and any funds spent on early intervening services count toward the allowable reduction cap.

Key requirements

• For any fiscal year for which the allocation received by an LEA under § 300.705 exceeds the amount the LEA received for the previous fiscal year, the LEA may reduce the level of expenditures otherwise required by § 300.203(b) by not more than 50 percent of the amount of that excess.
• If an LEA exercises the authority under paragraph (a) of this section, the LEA must use an amount of local funds equal to the reduction in expenditures under paragraph (a) of this section to carry out activities that could be supported with funds under the ESEA regardless of whether the LEA is using funds under the ESEA for those activities.
• If an SEA determines that an LEA is unable to establish and maintain programs of FAPE that meet the requirements of section 613(a) of the Act and this part or the SEA has taken action against the LEA under section 616 of the Act and subpart F of these regulations, the SEA must prohibit the LEA from reducing the level of expenditures under paragraph (a) of this section for that fiscal year.
• The amount of funds expended by an LEA for early intervening services under § 300.226 shall count toward the maximum amount of expenditures that the LEA may reduce under paragraph (a) of this section.

Affected parties

• Local Educational Agencies (LEAs)
• State Educational Agencies (SEAs)

Official source

https://www.ecfr.gov/current/title-34/part-300/section-300.205