United States Department of Education to the Honorable Tim Walz, Governor of Minnesota (November 17, 2023)

Summary

This is a letter dated November 17, 2023 from the Office of Elementary and Secondary Education at the United States Department of Education to Governor Tim Walz and Commissioner of Education Willie Jett of Minnesota, responding to the March 13, 2023 request for a waiver of the maintenance of effort (MOE) requirements for fiscal year 2022. It says the Department determined that Minnesota increased State support for elementary and secondary education overall and on a per-pupil basis in FY 2022 compared to the baseline years, but that the State failed to meet MOE requirements by approximately 1.25 percentage points ($188.6 million). The letter states that, considering the totality of the circumstances, approval of the waiver of the FY 2022 requirements is appropriate, and notes the waiver is distinct from any maintenance of equity determination.

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“United States Department of Education to the Honorable Tim Walz, Governor of Minnesota (November 17, 2023).” Original at www.ed.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-education-fy-2022-waiver-approved-www-ed-gov-c1746d9177-1e09ddd529/, SHA-256 f6c3c8a016775de7231acdcd127c52246dbd751208a927ee87c9a4c191032467.

Full text

                            UNITED STATES DEPARTMENT OF EDUCATION
                                 OFFICE OF ELEMENTARY AND SECONDARY EDUCATION




                                                November 17, 2023

The Honorable Tim Walz
Governor of Minnesota
130 State Capitol
75 Rev. Dr. Martin Luther King, Jr. Blvd.
St. Paul, MN 55155

The Honorable Willie Jett
Commissioner of Education
Minnesota Department of Education
400 NE Stinson Blvd.
Minneapolis, MN 55413

Dear Governor Walz and Commissioner Jett:

I am writing in response to the March 13, 2023, request from the Minnesota Department of
Education to the U.S. Department of Education (Department) for a waiver of the maintenance of
effort (MOE) requirements in section 317(a) of the Coronavirus Response and Relief
Appropriations Act, 2021 (CRRSA Act) and section 2004(a)(1) of the American Rescue Plan
Act of 2021 (ARP Act). As a condition of receiving CRRSA Act and ARP Act pandemic relief
funds under the Education Stabilization Fund, Minnesota assured it would maintain effort for
both elementary and secondary education and higher education in each of fiscal years (FYs)
2022 and 2023.

More specifically, for FY 2022, section 317(a) of the CRRSA Act requires a State that received
Elementary and Secondary School Emergency Relief funds (ESSER II), Governor’s Emergency
Education Relief funds (GEER II), and funds for the Emergency Assistance to Non-Public
Schools (EANS) program to: 1) maintain State support for elementary and secondary education
at least at the proportional level of the State’s support for elementary and secondary education
relative to the State’s overall spending, averaged over FYs 2017, 2018, and 2019; and
2) maintain State support for higher education at least at the proportional level of the State’s
support for higher education relative to the State’s overall spending, averaged over FYs 2017,
2018, and 2019. This MOE requirement also applies to ARP ESSER funds, and Section
2004(a)(2) of the ARP Act allows the Department to grant a waiver of the MOE requirements
“for the purpose of relieving fiscal burdens incurred by States in preventing, preparing for, and
responding to the coronavirus.”



                                400 MARYLAND AVE., SW, WASHINGTON, DC 20202
                                              http://www.ed.gov/

   The Department of Education’s mission is to promote student achievement and preparation for global competitiveness by
                               fostering educational excellence and ensuring equal access.
Page 2


Under the authority of section 2004(a)(2) of the ARP Act, I am approving Minnesota’s request to
waive the MOE requirements in section 317(a) of the CRRSA Act and section 2004(a)(1) of the
ARP Act with respect to State support for elementary and secondary education to relieve fiscal
burdens incurred by the State for FY 2022.

As indicated in the Department’s Frequently Asked Questions document, the Department’s
approach to MOE waiver requests is rooted in consideration of the impact on students. In
reviewing Minnesota’s waiver request, the Department considered all information and data
included, as well as the totality of the circumstances. Based on the information submitted, the
Department determined that, consistent with the Department’s interest in a State’s commitment
to education spending, Minnesota made increased investments in elementary and secondary
education. Specifically, Minnesota increased State support for elementary and secondary education
overall and on a per-pupil basis in FY 2022 compared to the baseline years.

Despite these facts, based on Minnesota’s submission, the State failed to meet MOE
requirements by approximately 1.25 percentage points ($188.6 million) in FY 2022, compared
with the baseline years. Factors contributing to the decrease in proportional education spending
included a one-time investment related to the unemployment insurance program to maintain a
safety net for workers in the wake of the pandemic and a 1.3 percent drop in student enrollment
compared to the baseline years.

Considering the totality of the circumstances, including the State’s ongoing commitment to
support elementary and secondary education and the State’s demonstration of fiscal burdens
incurred in responding to the coronavirus pandemic, the Department determined that approval of
the waiver of the FY 2022 requirements is appropriate. Please note that this waiver is distinct
from any determination the Department may make concerning Minnesota’s compliance with
maintenance of equity requirements for FY 2022 under the ARP Act (§ 2004(b)). Based on data
provided by the State, Minnesota has not yet complied with the maintenance of equity
requirements in FY 2022 for three high-need local educational agencies (LEAs). Minnesota must
make supplemental payments to these high-need LEAs that experienced disproportionate per-
pupil funding in FY 2022. Please advise the Department when these payments have been made.

Thank you for your ongoing commitment to education. If you have any questions, please contact
the Minnesota State Mailbox at: Minnesota.OESE@ed.gov.

                                                  Sincerely,

                                                  Laura Jimenez

                                                  Laura Jimenez
                                                  Director, Office of State and Grantee Relations

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