[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR299.5]

[Page 585-586]
 
                           TITLE 34--EDUCATION
 
                  CHAPTER II--OFFICE OF ELEMENTARY AND
              SECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 299_GENERAL PROVISIONS--Table of Contents
 
                      Subpart D_Fiscal Requirements
 
Sec. 299.5  What maintenance of effort requirements apply to ESEA programs?


    (a) General. An LEA receiving funds under an applicable program 
listed in paragraph (b) of this section may receive its full allocation 
of funds only if the SEA finds that either the combined fiscal effort 
per student or the aggregate expenditures of State and local funds with 
respect to the provision of free public education in the LEA for the 
preceding fiscal year was not less than 90 percent of the combined 
fiscal effort per student or the aggregate expenditures for the second 
preceding fiscal year.
    (b) Applicable programs. This subpart is applicable to the following 
programs:
    (1) Part A of title I (Improving Basic Programs Operated by Local 
Educational Agencies).
    (2) Title II (Eisenhower Professional Development Program) (other 
than section 2103 and part C of this title).
    (3) Subpart 2 of part A of title III (State and Local Programs for 
School Technology Resources).
    (4) Part A of title IV (Safe and Drug-Free Schools and Communities) 
(other than section 4114).
    (c) Meaning of ``preceding fiscal year''. For purposes of 
determining if the requirement of paragraph (a) of this section is met, 
the ``preceding fiscal year'' means the Federal fiscal year, or the 12-
month fiscal period most commonly used in a State for official reporting 
purposes, prior to the beginning of the Federal fiscal year in which 
funds are available for obligation by the Department.

    Example: For fiscal year 1995 funds that are first made available on 
July 1, 1995, if a State is using the Federal fiscal year, the 
``preceding fiscal year'' is Federal fiscal year 1994 (which began on 
October 1, 1993 and ended September 30, 1994) and the ``second preceding 
fiscal year'' is Federal fiscal year 1993 (which began on October 1, 
1992). If a State is using a fiscal year that begins on July 1, 1995, 
the ``preceding fiscal year'' is the 12-month period ending on June 30, 
1994, and the ``second preceding fiscal year'' is the period ending on 
June 30, 1993.

    (d) Expenditures. (1) In determining an LEA's compliance with 
paragraph (a) of this section, the SEA shall consider only the LEA's 
expenditures from State and local funds for free public education. These 
include expenditures for administration, instruction, attendance and 
health services, pupil transportation services, operation and 
maintenance of plant, fixed charges, and net expenditures to cover 
deficits for food services and student body activities.
    (2) The SEA may not consider the following expenditures in 
determining an LEA's compliance with the requirements in paragraph (a) 
of this section:
    (i) Any expenditures for community services, capital outlay, debt 
service or supplemental expenses made as a result of a Presidentially 
declared disaster.

[[Page 586]]

    (ii) Any expenditures made from funds provided by the Federal 
Government.

(Authority: 20 U.S.C. 8891)