The purpose of this memorandum is to announce that the regulations governing Part B of the Individuals with Disabilities Education Act Amendments of 1997 (34 CFR Part 300) have been amended. A statutory provision has been implemented regarding the permissive treatment of a portion of Part B (Title VI-B) funds by local education agencies (LEA) as stated under Section 613(a)(2)(C) of the Act and 34 CFR 300.233 of the regulations. A copy of this provision will be disseminated along with a paper copy of this Director's Communication in the Arkansas Department of Education's bulk mailing system. Under the new provision, a LEA may treat as local funds up to 20 percent of the amount it receives that exceeds the amount it received under Part B beginning with fiscal year 2001. By treating certain federal funds as local funds, a LEA will be able to meet the maintenance of effort requirement under 34 CFR 300.231 even though it reduces the amount of other state and local funds dedicated to special education.
Please contact the Special Education Unit if you have any questions regarding the new provision.