NC 1502-6 Adjustment to Local Fiscal Efforts in Certain Fiscal Years

Plain English summary

This regulation allows LEAs to reduce their required local expenditure levels by up to 50 percent of any excess allocation received under NC 1506-1.4 compared to the prior fiscal year, provided certain conditions are met. Any reduction must be offset by equivalent local funds spent on ESEA-eligible activities. The SEA may prohibit such reductions if the LEA cannot maintain FAPE programs or is subject to enforcement action.

Key requirements

• For any fiscal year in which the allocation received by an LEA under NC 1506-1.4 exceeds the amount the LEA received for the previous fiscal year, the LEA may reduce the level of expenditures otherwise required by NC 1502-4(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 the 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 NC 1502-20 shall count toward the maximum amount of expenditures that the LEA may reduce under paragraph (a) of this section.

Affected parties

• Local Education Agencies (LEAs)
• State Education Agency (SEA)
• Students with disabilities receiving FAPE

Official source

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