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Maintenance of Effort.   

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Districts maintaining programs under this chapter shall assure that the sum of local and state apportionment resources utilized in programs for participating students has not been reduced. The following standards apply:

(a) Except as provided in subdivisions (c) and (d) of this section, the Superintendent of Public instruction may approve an application from a Local Education Agency (LEA) or state agency for state compensatory education funds only if it is demonstrated in the application that is expenditures of state and local funds for the education of children, either on an aggregate or average daily attendance basis, be not less for the first fiscal year preceding the fiscal year in which the agency is applying for funds than for the second preceding fiscal year.

(b) In demonstrating compliance with the requirement in subdivision (a) of this section, only the following expenditures may be included in the computation:

(1) Expenditures by object classifications 1000 through 5000 series in the California School Accounting Manual, 1980 Edition, except expenditures for community service classes, and

(2) Expenditures of federal funds received under Public Law 874 (School Assistance in Federally Affected Areas).

(c) In determining compliance with the requirement in subdivision (a) of this section, the Superintendent of Public instruction may disregard a decrease of less than ten percent in allowable expenditures from the second preceding fiscal year to the first preceding fiscal year.

(d) Upon written application, the Superintendent of Public Instruction may determine that the LEA or state agency is in substantial compliance with the requirement in subdivision (a) of this section, provided, the applicant demonstrates that any decrease in allowable expenditures from the second preceding fiscal year to the first preceding fiscal year did not result in any decrease in the level of services provided.

Authority Cited:

Education Code 33031

Education Code 54005

Reference:

Education Code 54001

United States Code, Title 20, Section 2736

Code of Federal Regulations, Title 34, Section 200.60-200.61

(Amended by Register 82, No. 16.)