You are here

ARP Maintenance of Effort and Maintenance of Equity

Maintenance of Effort

As with previous COVID-19 relief legislation (CARES, CRRSA), states are required to maintain funding for K-12 and higher education as a condition of receiving federal funds. This requirement, known as the Maintenance of Effort (MOE) requirement, prevents states from using ARP Act funds to make up for state revenue losses. The base measure for the MOE test is a three-year average of state spending, using FY17, FY18, and FY19. Under ARP, the state must maintain funding for K-12 schools in FY22 and FY23 as a proportion of the state’s total general fund budget, at or above the MOE base (FY17-FY19 three-year average).

Based on data submitted by the DPI, the U.S. Department of Education has determined that compliance with Maintenance of Effort (MOE) requirements under the CARES and CRSSA Acts requires the State of Wisconsin to maintain the following funding levels for K-12 and higher education:  

  • For FY21, Wisconsin must maintain its annual support for K-12 education at $5,816,496,378 and for higher education at $1,462,233.  
  • In FY22 and FY23, Wisconsin must maintain its annual support for K-12 education at 35.28 percent of overall State spending and higher education at 8.87 percent of overall State spending.  

Maintenance of Equity for ESSER III Funds

States and LEAs must also meet maintenance of equity measures. As a condition of receiving the federal ESSER III funds,

In FY22 and FY23, states may not:

  • reduce state funding, as calculated on a per-pupil basis, for any high-need LEA by an amount that exceeds the overall per-pupil reduction in state funds across all LEAs; or
  • reduce state funding, as calculated on a per-pupil basis, for any highest poverty LEA below the level of funding, as calculated on a per-pupil basis, provided to each such LEA in fiscal year 2019.

In FY22 and FY23, LEAs may not:

  • reduce per-pupil spending or per-pupil staffing for high-poverty schools at a greater rate than the reductions (if any) that are applied to all schools in the LEA.

If a state fails to meet the maintenance of effort or maintenance of equity requirements, the USDE can recover the full amount of a State’s GEER Fund and ESSER Fund awards and/or take other actions deemed appropriate under the Federal Uniform Grant Guidance 2 C.F.R. § 200.207 and section 455 of the General Education Provisions Act.