County Budget Officers Meet to Discuss New Maintenance of Effort Requirements

County budget officers met yesterday at the MACo office to discuss the new Maintenance of Effort (MOE) legislation and how MOE would be affected by a shift of teacher pension costs to the counties. During, the heavily attended meeting, the group discussed the three different waiver request processes (the one-year waiver, the rebasing waiver, and recurring cost waiver), the MOE calculation, the assurance provisions that would authorize the State to take a county’s income tax revenues and give them to a school board should a county not meet MOE, and the automatic escalator.

With respect to teacher pensions, counties would pay the pension costs on top of MOE during the phase-in period, four-years under the Senate plan and three-years under the House plan.  However, once these costs are fully phased-in, they will become part of a county’s MOE requirement increasing the per-pupil costs for that jurisdiction.

Since the State Board of Education has taken no action to establish a process for counties seeking MOE waivers for the upcoming fiscal year, MACo has advised counties contemplating pursuing a MOE waiver to submit at least a letter of intent to the State Board of Education as soon as possible.

The documents distributed at yesterday’s meeting are below.

SB 848 Education – Maintenance of Effort

SB 848 Fiscal Note

MOE Summary from budget summary document (pages 33 – 34)

Senate Pension Shift Plan (pages 27 – 30)

House Pension Shift Plan (pages 29 – 34)

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