August 13, 2020

Dear Colleagues,

On behalf of the Division of Academic and Technical Education (DATE), I am pleased to invite you and your State’s Perkins V fiscal staff to a Town Hall Webinar: Verifying and Documenting Maintenance of Effort (MOE) Baseline Levels under Perkins V. This Webinar will be held on September 10, 2020, from 1:00 pm – 2:00 pm ET. View event details.

As you are aware, the Perkins V statute in section 211(b)(1)(A) requires that for a State to receive its full allotment of funds for any fiscal year, the Secretary must find that the State’s fiscal effort per student, or aggregate expenditures of the State, with respect to career and technical education for the preceding fiscal year was not less than the fiscal effort per student or aggregate expenditures of the State for the second preceding fiscal year. In order for the Secretary to determine whether the State has met this “maintenance of effort” (MOE) requirement, section 211(b)(1)(D) of Perkins V requires each eligible agency to establish its baseline for the first full fiscal year of the Act, beginning on July 1, 2019. In establishing its baseline, the State could use one of two methods:

• Continuing to use the State’s fiscal effort per student, or aggregate expenditures of such State, for career and technical education, as was in effect on the day before the enactment of Perkins V (continuing level); or
• Establishing a new level of fiscal effort per student, or aggregate expenditures of such State, for career and technical education, which is not less than 95 percent of the State’s fiscal effort as was in effect on the day before the enactment of Perkins V (new level).

[Section 211(b)(1)(D)(i)-(ii) of Perkins V]

Each State was required to submit its MOE baseline for FY 2019 in its One-Year Transition Plan. The State was further required to indicate whether the level was a “continuing” or “new” level based on its FY 2018 expenditures. Because the Perkins V statute requires that a State meet its MOE to receive its full allotment of funds for any fiscal year (as noted above) and because MOE is subject to single State audits of Federal Perkins funds, it is important for each State to have a fully verified and documented MOE baseline level. This Webinar will provide technical assistance on the MOE requirement in Perkins V, share examples of good practice in verifying and documenting MOE baselines, and provide next steps for any State that needs to update its baseline submission to the Department.

We hope you and your staff can join us for an informative session on September 10!

Sharon Lee Miller
Director, Division of Academic and Technical Education