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U.S. Department of Education: Promoting Educational Excellence for all Americans
Regulations: Part 300 / C / 300.230 / a

(a) Adjustment to State fiscal effort in certain fiscal years. For any fiscal year for which the allotment received by a State under Sec. 300.703 exceeds the amount the State received for the previous fiscal year and if the State in school year 2003-2004 or any subsequent school year pays or reimburses all LEAs within the State from State revenue 100 percent of the non-Federal share of the costs of special education and related services, the SEA, notwithstanding Sec. Sec. 300.162 through 300.163 (related to State-level nonsupplanting and maintenance of effort), and Sec. 300.175 (related to direct services by the SEA) may reduce the level of expenditures from State sources for the education of children with disabilities by not more than 50 percent of the amount of such excess.