What are the Maintenance of Effort (MOE) requirements?
In order to receive grants from the State Stabilization Fund, states must agree to maintain their respective funding for education at FY2006 levels or greater. However, the primary purpose of the fund is to stabilize education funding and prevent cuts from current fiscal year funding levels. FY2006 is a threshold. There is language under the State Stabilization Fund that allows state education agencies and school districts to apply to the Secretary of Education to waive or modify any requirement relating to maintaining fiscal effort if there is a significant fiscal challenge. It reads as follows: “A wavier or modification under this section shall be for any of the fiscal year 2009, fiscal year 2010 or fiscal year 2011, as determined by the Secretary. The Secretary shall not grant a waiver or modification under this section unless the Secretary determines that the State or local educational agency receiving such waiver or modification will not provide for elementary and secondary educat
