State-Level Maintenance of Equity FYs 2022-2023 - July 18, 2023
The fiscal year (FY) 2024 budget for the state of Illinois includes a FY 2023 supplemental appropriation for purposes of compliance with federal Maintenance of Equity requirements that apply to state funding provided for public education. Maintenance of Equity requirements were included in the American Rescue Plan Act of 2021, and they govern state funding for education in FYs 2022 and 2023. As a condition of receiving Elementary and Secondary School Emergency Relief funds, states may not reduce state funding (as calculated on a per-pupil basis) provided to certain high poverty Local Education Agencies (LEAs) by an amount that exceeds any statewide reduction in per-pupil funding. To conduct the required fiscal tests, states first rank all LEAs by the percentage of low-income students they serve. States must then identify and maintain equity for two categories of LEAs:
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High-Need LEAs: These LEAs cumulatively serve 50 percent of the students in the state. To maintain equity, per-pupil state funding provided in FY 2022 must be greater than or equal to per-pupil state funding provided in FY 2021. The test then repeats for FY 2023 compared to FY 2022.
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Highest-Poverty LEAs: These LEAs cumulatively serve 25 percent of students in the state. To maintain equity, per-pupil state funding provided in FY 2022 must be greater than or equal to per-pupil state funding provided in FY 2019. The test repeats for FY 2023 compared to FY 2019. Additionally, per-pupil funding provided to these LEAs must meet the High-Need LEA fiscal test.
Illinois identified 420 LEAs in 2023 and 414 LEAs in 2022 as High-Need or Highest-Poverty and met or exceeded the Maintenance of Equity requirements for 90% of those LEAs. ISBE did not meet the Maintenance of Equity requirements for 80 total LEAs. State funding provided for all school districts increased in total and on a per-pupil basis in FYs 2022 and 2023. The 80 LEAs eligible for the supplemental appropriation experienced increases in enrollment and other specific local circumstances that resulted in lower per-pupil funding compared to the baseline year.
ISBE will issue one-time Maintenance of Equity payments to eligible LEAs. Payment amounts can be reviewed by downloading the spreadsheet below.
Additional information regarding Maintenance of Equity can be found in the
Department of Education’s Maintenance of Equity Requirements guidance.
Local Maintenance of Equity FYs 2022-2023 - Updated November 1, 2022
The U.S. Department of Education published its
Final Requirements for the American Rescue Plan Act Elementary and Secondary School Emergency Relief fund in the Federal Register on June 8. These requirements establish state reporting responsibilities regarding (LEA)implementation of MOEquity. Each state must publish LEA-level MOEquity data on its website according to the following timeline:
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July 8, 2022 – A list of LEAs that are excepted from MOEquity in fiscal year 2022, along with the identification of high-poverty schools for any non-excepted LEA. The ARP Act excepts an LEA from MOEquity if it has fewer than 1,000 students, has only one school, serves all students in each grade span in a single school, or certifies that it has not implemented an aggregate reduction in combined state and local per-pupil funding in FY 2022 compared to FY 2021.
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November 1, 2022 – A list of LEAs that are excepted from MOEquity in FY 2023, along with the identification of high-poverty schools for any non-excepted LEA.
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December 31, 2022 – The applicable LEA high-poverty school data for FY 2022. - Published August 19, 2022
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December 31, 2023 – The applicable LEA high-poverty school data for FY 2023.
Additionally, each state must publish a description of how it will ensure that any non-excepted LEA is protecting its high-poverty schools from a disproportionate reduction in per-pupil funding or staffing as required by the ARP Act. Each state must also specify when it will require any non-compliant LEA to describe what adjustments it will make to be in compliance prior to the start of the next fiscal year.
The spreadsheets below provide the relevant LEA-level MOEquity data; they will be updated as needed in alignment with the reporting deadlines noted above. Each LEA is identified by its unique identification codes (state and federal), along with its reason for exception. Eligibility for exemption or exception is monitored by reviewing enrollment data, current building configurations, and financial information. High-poverty schools are identified for any LEAs that did not meet the criteria for exemption or exception. For FY 2023, all LEAs met the criteria for exemption or submitted a Certification of Exception.
ISBE has established the following procedures to ensure that each non-excepted LEA is complying with the fiscal and staffing equity tests established in the ARP Act of 2021:
- Non-excepted LEAs must conduct the required fiscal and staffing tests using actual expenditures from the baseline year and budgeted expenditures for the comparison year. Results must be submitted to ISBE by early December of each fiscal year (i.e., December 3, 2021, for FY 2022 and December 2, 2022, for FY 2023). Guidance and tools for conducting the required tests are shared with districts annually.
- By the deadline communicated for each fiscal year, LEAs that determine they have not maintained fiscal and/or staffing equity in high-poverty schools must submit a plan describing what adjustments they will make to be in compliance prior to the start of the next fiscal year. ISBE will review these plans and provide technical assistance, as necessary.
FY 2023 LEA Maintenance of Equity Implementation Resources - Updated July 25, 2022
The American Rescue Plan Act of 2021 includes requirements for states and Local Education Agencies (LEAs) receiving ESSER funds. These requirements, known as Maintenance of Equity (MOEquity), protect certain high-poverty schools from disproportionate reductions in state and local funding and staffing in fiscal years 2022 and 2023. ISBE has published guidance for FY 2023 implementation. For questions not addressed in the resources below, please email
ARPMOEQUITY@ISBE.net .
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ISBE Resources
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Notification to LEAs of FY 2023 Resources - via ISBE Weekly July 26, 2022
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FY 2023 LEA Requirements Webinar
: This pre-recorded webinar provides an overview of MOEquity requirements for FY 2023. It is divided into two parts. Part I provides information that is relevant for all districts, including the criteria for exemption and how to complete the FY 2023 LEA MOEquity Exception Survey if required (see below). Part II is for non-exempt or excepted LEAs that must conduct the full fiscal and staffing equity tests required by MOEquity.
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Exempt/Non Exempt LEAs
: ISBE used data from the Entity Profile System this year to pre-identify LEAs for exemption, per certain statute-defined criteria. Specifically, an LEA is exempt from MOEquity if it has home enrollment of fewer than 1,000 students, operates a single school, or serves all students within each grade span in a single school (e.g., one school each for K-5, 6-8, and 9-12). All LEAs should verify their exemption status by reviewing the exemption report, which identifies all LEAs as exempt or non-exempt. If ISBE has accurately identified your LEA as exempt, no further action is required.
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FY 2023 LEA MOEquity Exception Survey: This survey is required for all non-exempt LEAs and will support LEA leaders in determining steps to comply with MOEquity in FY 2023, including whether an LEA is eligible for the Certification of Exception (waiver). Additionally, an LEA that believes that there is an error in ISBE’s list of LEAs pre-identified for exemption can request a revision in the survey.
The survey was due for all non-exempt LEAs by or before September 12.
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FY 2023 MOEquity Demonstration Tool : This ISBE-created worksheet will support LEAs not eligible for exemption or exception in conducting the fiscal and staffing equity tests required by MOEquity. A completed worksheet is due to ISBE by or before December 2.
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Federal Resources
