NC 1502-5 Exception to Maintenance of Effort

Plain English summary

This regulation establishes specific exceptions under which a Local Education Agency (LEA) may lawfully reduce its special education expenditures below the prior fiscal year's level, overriding the general maintenance of effort requirement in NC 1502-4(b). Permitted reductions are tied to defined circumstances such as staff departures, enrollment decreases, termination of individual program obligations, end of costly capital expenditures, or cost assumption by the SEA high cost fund. These exceptions are exhaustive as written and must be attributable to one of the enumerated conditions.

Key requirements

• An LEA may reduce Part B expenditures below the preceding fiscal year's level only if the reduction is attributable to one of the enumerated exceptions.
• The voluntary departure, by retirement or otherwise, or departure for just cause, of special education or related services personnel.
• A decrease in the enrollment of children with disabilities.
• The termination of the obligation of the agency to provide a program of special education to a particular child with a disability that is an exceptionally costly program, as determined by the SEA, because the child has left the jurisdiction of the agency, has reached the age at which the obligation to provide FAPE has terminated, or no longer needs the program of special education.
• The termination of costly expenditures for long-term purchases, such as the acquisition of equipment or the construction of school facilities.
• The assumption of cost by the high cost fund operated by the SEA under NC 1506-1.3(c).

Affected parties

• Local Education Agencies (LEAs)
• Children with disabilities
• Special education personnel
• Related services personnel
• State Education Agency (SEA)

Official source

https://www.dpi.nc.gov/documents/publications/catalog/ec144-policies-governing-services/open#page=53