Maintenance of Effort is a
good thing. Oh wait, no, Maintenance of
Effort is a bad thing. On the other
hand, just what is Maintenance of Effort?
MOE as it is often called is a requirement of
state and federal law that school districts maintain the local contributions to
education regardless of any additional income from state or federal
grants. So if a local district
contributed 10 million dollars to education in FY 14 it must continue to
contribute that amount at a minimum, even if the district gets a windfall of 20
million from state, federal or private sources.
The point of MOE is to ensure that local districts do not reduce their
local share of education in the good times so that when the bad times come, as they
almost always do, there will be money in the local budget to ensure minimum
resources for education. Most education
advocates think this requirement is a great idea. Some local school districts are very unhappy. Let’s look at each side of the argument.
Pros: Prior to the Maintenance of Effort
requirement, local funding for education went up and down according to the
availability of outside funds. As in the
grasshopper story, there were lean years and fat years. Education advocates wanted to make sure that
the local district maintained baseline funding for education regardless of the
outside funding sources. The system has
worked rather well and it has forced school systems to be prudent in using
additional funds for the basic programs.
There have been instances when districts have not sustained local
funding and have received consequences from the state board of education. Recently Montgomery County Public Schools in
Maryland tried to go below the maintenance of effort funding level and were called
on the practice by the State Board of Ed.
Montgomery County Schools countered that the overall money for education
was greater than the previous year.
Good idea right? Not so fast. And therein is part of the
issue. Regulatory agencies are fairly
strict in enforcing MOE. School
districts are saying that they can’t try out new programs with local money
because that automatically raises the threshold for MOE for that school year
and for future years. These school
systems say that MOE thwarts creativity in programing. If the new program does not work out, the
school district must still keep the cost of that program in the budget. School districts want some flexibility in
what counts as MOE. Education advocates
say they have been burned before and don’t trust these waivers.
What is the answer? It is true that without MOE local funds for
education were regularly replaced by state, federal and other outside funds and
then when the outside funds were reduced, so were local ed programs. On the other hand, do the strict MOE requirements
stifle any creativity? Be careful what
you wish for.