Michigan Public School District Maintenance of Effort

The Elementary and Secondary Education Act (ESEA) requires school districts to maintain effort. For a school district to maintain effort, it must spend at least 90% during the preceding fiscal year of the amount it spent in the second preceding fiscal year. The Department is required to reduce the full allocation of certain federal grant programs for school districts that fail to maintain effort.

In November 2016, the United States Department of Education released a document highlighting important fiscal changes to the ESEA made by the Every Student Succeeds Act. The following Maintenance of Effort language is found on page 20:

  • A State Educational Agency must reduce a Local Educational Agency’s (LEA) allocation under a covered program if the LEA fails to maintain effort in a given fiscal year and also failed to maintain effort in one or more of the five immediately preceding fiscal years. (ESEA Section 8521 (b)(1), page 426)

Based on this language, a school district must fail to meet effort in two of the last six fiscal years before its allocation is reduced.

Below are links to the Maintenance of Effort process and fiscal year calculations.