NC 1502-22 SEA Flexibility

Plain English summary

This regulation governs when and how the State Education Agency (SEA) may reduce state-level special education expenditures in years when federal allotments increase, provided certain conditions are met including full state reimbursement of non-Federal FAPE costs. The SEA is prohibited from making reductions if doing so would jeopardize any LEA's ability to provide 100 percent of FAPE to children with disabilities. Reduced funds must be redirected to ESEA-authorized activities or need-based higher education programs, and the SEA must report such reductions to the Secretary.

Key requirements

• For any fiscal year for which the allotment received by the State under NC 1506-1.2 exceeds the amount the State received for the previous fiscal year and if the State in school year 2003-2004 or any subsequent school year pays or reimburses all LEAs within the State from State revenue 100 percent of the non-Federal share of the costs of special education and related services, the SEA may reduce the level of expenditures from State sources for the education of children with disabilities by not more than 50 percent of the amount of such excess.
• If the Secretary determines that the SEA is unable to establish, maintain, or oversee programs of FAPE that meet the requirements of this part, or that the State needs assistance, intervention, or substantial intervention under NC 1505-1.4, the Secretary prohibits the SEA from exercising the authority in paragraph (a) of this section.
• If the SEA exercises the authority under paragraph (a) of this section, the agency must use funds from State sources, in an amount equal to the amount of the reduction under paragraph (a) of this section, to support activities authorized under the ESEA, or to support need-based student or teacher higher education programs.
• For each fiscal year for which the SEA exercises the authority under paragraph (a) of this section, the SEA must report to the Secretary the amount of expenditures reduced pursuant to that paragraph and the activities that were funded pursuant to paragraph (c) of this section.
• The SEA may not reduce the level of expenditures described in paragraph (a) of this section if any LEA in the State would, as a result of such reduction, receive less than 100 percent of the amount necessary to ensure that all children with disabilities served by the LEA receive FAPE from the combination of Federal funds received under Part B of the IDEA and State funds received from the SEA.
• If the SEA exercises the authority under paragraph (a) of this section, LEAs in the State may not reduce local effort under NC 1502-6 by more than the reduction in the State funds they receive.

Affected parties

• State Education Agency (SEA)
• Local Education Agencies (LEAs)
• Children with disabilities
• Secretary of Education

Official source

https://www.dpi.nc.gov/documents/publications/catalog/ec144-policies-governing-services/open#page=58