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U.S. Department of Education: Promoting Educational Excellence for all Americans

Reallocation of LEA Funds (Sec. 300.817)

(originally published on December 1, 2008 – 73 FR 73006; effective date – July 1, 2008)

Comment: One commenter supported the changes reflected in proposed Sec. 300.817. Another commenter opposed the changes, stating that the time and effort needed for States to monitor LEAs as provided in Sec. 300.817 could be better used elsewhere.

Discussion: We understand the commenter's concern that this provision will require States to revise their procedures for monitoring the obligation of funds. However, requiring an SEA, after it distributes Part B funds to an LEA that is not serving any children with disabilities, to determine, within a reasonable period of time prior to the end of the carryover period in Sec. 300.709, whether the LEA has obligated those funds will prevent the funds from lapsing and enable the State to use those funds for other purposes. Therefore, the benefit of this provision outweighs the potential administrative burden.

Changes: None.