Sec. 13a.02.05.05. Additional Maintenance of Effort for Low-Effort Counties

A. Procedure.

(1) In each fiscal year in which a county’s prior year’s education effort is below 100 percent of the Statewide five-year moving average of education effort, the Department will designate the county as a low-effort county.

(2) The local board in a low-effort county shall adjust the maintenance of effort amount for the county by increasing the per-pupil amount by the lesser of:

(a) A county’s increase in local wealth per pupil between the prior fiscal year and current fiscal year;

(b) The Statewide average increases in local wealth per pupil between the prior fiscal year and the current fiscal year; or

(c) 2.5 percent.

(3) If the number calculated pursuant to §A(2)(a) or (b) of this regulation is a negative number, the adjustment to the maintenance of effort amount shall be zero.

B. Calculations.

(1) For the purpose of calculating the 5-year moving average of education effort, the Department’s calculation of wealth in each fiscal year included in the 5-year period shall be based on the amount the Comptroller certifies as net taxable income based on tax returns filed on or before:

(a) September 1st for fiscal years 2015-2017; and

(b) November 1st for fiscal year 2018 and each fiscal year thereafter.

(2) To calculate a county’s increase in local wealth per pupil, divide the current fiscal year’s local wealth per pupil by the prior fiscal year’s local wealth per pupil and subtract 1.

(3) To calculate the Statewide average increase in local wealth per pupil, add together the 24 changes in local wealth per pupil as calculated in §B(2) of this regulation and divide by 24.