The purpose of the IDEA-B LEA MOE allowable exceptions is to allow LEAs to reduce the level of their state and/or local expenditures below the level of those expenditures for the last compliant fiscal year. This means, that exceptions lower the total expenditure amount (the baseline/level amount) an LEA must spend each year from state and local budgets. While the result of claiming exceptions may bring an LEA into compliance with the MOE requirement, it is because the expenditure baseline is lowered (the intended purpose). To ensure the state and local baseline expenditures are not overstated with costs related to unclaimed exceptions, eligible exceptions should be claimed every year regardless of compliance status.
The termination of costly expenditures for long-term purchases is applicable to items such as the acquisition of equipment, buses, or the construction of school facilities. The costs are normally “one-off” capital outlay costs incurred during a school year. In the State of Texas, only expenditures in class-object code 66xx are eligible.
Capital Outlay expenditures include the acquisition of equipment or construction of school facilities. Equipment means an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals or exceeds $5,000 or the LEA’s established capitalization level, whichever is less. Capital expenditures, or capital outlay, means expenditures for the acquisition of capital assets, such as equipment, or expenditures to make improvements to capital assets that materially increase their value or useful life.
LEAs can determine their applicable exceptions by claiming all costs coded to object code 66XX.
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