What effect does the voluntary expenditure of funds for CEIS have on reducing required MOE using the 50% rule?
When an LEA s maximum MOE reduction is less than the amount that may be set aside for CEIS, the maximum MOE reduction is reduced by the amount expended for CEIS. For example, if an LEA has a $100,000 increase in its allocation and expends no funds on CEIS, it may reduce its MOE by up to $50,000. (100,000 x .50 = 50,000) However, if this LEA expends $40,000 on CEIS, it must subtract this amount from the permitted reduction in MOE. Therefore, the LEA may only reduce its required MOE by $10,000 (100,000 x .50 = 50,000 40,000 = 10,000). However, during the 2009-2010 school year for almost all LEAs, the maximum MOE reduction permitted is greater than the amount that may be set aside for CEIS. In this instance, the MOE reduction is capped at the maximum amount that may be set aside for CEIS minus the amount expended on CEIS [34 CFR ยง300.226 (a)]. Expending IDEA funds on CEIS automatically reduces the LEA s maximum MOE reduction to the same amount as the maximum that may be set aside for CEIS
