[Code of Federal Regulations] [Title 34, Volume 3] [Revised as of July 1, 2005] From the U.S. Government Printing Office via GPO Access [CITE: 34CFR461.42] [Page 131-132] TITLE 34--EDUCATION CHAPTER IV--OFFICE OF VOCATIONAL AND ADULT EDUCATION, DEPARTMENT OF EDUCATION PART 461_ADULT EDUCATION STATE-ADMINISTERED BASIC GRANT PROGRAM--Table of Contents Subpart E_What Conditions Must be Met by a State? Sec. 461.42 What is the maintenance of effort requirement? (a) Basic standard. (1)(i) Except as provided in Sec. 461.43, a State is eligible for a grant from appropriations for any fiscal year only if the Secretary determines that the State has expended for adult education from non-Federal sources during the second preceding fiscal year (or program year) an amount not less than the amount expended during the third preceding fiscal year (or program year). [[Page 132]] (ii) The Secretary determines maintenance of effort on a per student expenditure basis or on a total expenditure basis. (2) For purposes of determining maintenance of effort, the ``second preceding fiscal year (or program year)'' is the fiscal year (or program year) two years prior to the year of the grant for which the Secretary is determining the State's eligibility. The ``third preceding fiscal year (or program year)'' is the fiscal year (or program year) three years prior to the year of the grant for which the Secretary is determining the State's eligibility. Example: Computation based on fiscal year. If a State chooses to use the fiscal year as the basis for its maintenance of effort computations, the Secretary determines whether a State is eligible for the fiscal year 1992 grant (a grant that is awarded on or after July 1, 1992 from funds appropriated in the fiscal year 1992 appropriation) by comparing expenditures from the second preceding fiscal year--fiscal year 1990 (October 1, 1989-September 30, 1990)--with expenditures from the third preceding fiscal year--fiscal year 1989 (October 1, 1988-September 30, 1989). If there has been no decrease in expenditures from fiscal year 1989 to fiscal year 1990, the State has maintained effort and is eligible for its fiscal year 1992 grant. Computation based on program year. If a State chooses to use a program year running from July 1 to June 30 as the basis for its maintenance of effort computation, the Secretary determines whether a State is eligible for funds for the fiscal year 1992 grant by comparing expenditures from the second preceding program year--program year 1990 (July 1, 1989-June 30, 1990)--with expenditures from the third preceding program year--program year 1989 (July 1, 1988-June 30, 1989). If there has been no decrease in expenditures from program year 1989 to program year 1990, the State has maintained effort and is eligible for its fiscal year 1992 grant. (b) Expenditures to be considered. In determining a State's compliance with the maintenance of effort requirement, the Secretary considers the expenditures described in Sec. 461.41(c). (Authority: 20 U.S.C. 1209(b))