Dear Governor DeWine and Director Dackin — Waiver of the Maintenance of Effort (May 21, 2024)

Summary

A letter dated May 21, 2024 from the U.S. Department of Education's Office of Postsecondary Education, signed by Laura Jimenez, to Mike DeWine, Governor, and Stephen D. Dackin, Director, of the Ohio Department of Education and Workforce. It responds to Ohio's March 4, 2024 request for a waiver of the fiscal year 2023 maintenance of effort requirements under the American Rescue Plan Act of 2021. The letter describes a higher education shortfall of $13.9 million that Ohio attributes to increased State spending on health and human services and pandemic-related programs. It notes that Ohio raised higher education support from $2,545,899,967 in the baseline years to $2,717,345,404 in fiscal year 2023 and a $303.8 million increase in fiscal year 2024.

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                                UNITED STATES DEPARTMENT OF EDUCATION
                                       OFFICE OF POSTSECONDARY EDUCATION


                                                    May 21, 2024

The Honorable Mike DeWine
Governor of Ohio
Riffe Center, 30th Floor
77 South High Street
Columbus, OH 43215

The Honorable Stephen D. Dackin
Director
Ohio Department of Education and Workforce
25 South Front Street
Columbus, Ohio 43215

Dear Governor DeWine and Director Dackin:

I am writing in response to the Ohio Department of Education and Workforce’s March 4, 2024,
request to the U.S. Department of Education (Department) for a waiver of the fiscal year (FY)
2023 maintenance of effort (MOE) requirements under the American Rescue Plan Act of 2021
(ARP Act).

As a condition of receiving Elementary and Secondary Emergency Relief (ESSER) funds under
the ARP Act, Ohio assured it would maintain effort, as defined in the ARP Act, for both
elementary and secondary education and higher education in each of FYs 2022 and 2023. More
specifically, for each FY, section 2004(a)(1) of the ARP Act requires a State that receives ARP
ESSER funds to maintain State support for: 1) 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) 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. 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.”

Under the authority of section 2004(a)(2) of the ARP Act, I am approving Ohio’s request to
waive the MOE requirements in section 2004(a)(1) of the ARP Act with respect to State support
for higher education to relieve fiscal burdens incurred by the State for FY 2023. This
determination is based on the totality of the circumstances, including review of Ohio’s waiver
request and the fiscal burden the State incurred in responding to the COVID-19 pandemic; the
Department’s application of the statutory requirements; the Department’s approach to MOE

                                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 – The Honorable Mike DeWine and Stephen D. Dackin


waiver requests as noted in the Frequently Asked Questions document;1 and consideration of the
impact on students.

Based on the information submitted, Ohio failed to meet the FY 2023 MOE requirement for
higher education by 0.53 percentage point (a $13.9 million shortfall). Ohio noted that the
decrease in proportional higher education spending was due to increases in overall State
spending on health and human services; expanded foster care; and other programs related to the
COVID-19 pandemic, including broadband connectivity, criminal justice services, and economic
development projects.

In determining whether to grant a State an MOE waiver, we may consider factors such as
increased State support for education. Ohio submitted data showing it increased overall support
for higher education from an average of $2,545,899,967 in the baseline years to $2,717,345,404
in FY 2023. Ohio also increased FY 2023 per-pupil spending for higher education by
20.5 percent, or $1,324 per student, compared to the baseline. Finally, Ohio demonstrated a
commitment to State support for higher education beyond FY 2023 including $303.8 million in
increased spending in FY 2024, as noted in the State’s waiver request.2 This increase in the
higher education appropriations is larger than Ohio’s shortfall for FY 2023 as calculated under
the ARP Act MOE requirement.

Thank you for your ongoing commitment to education. If you have any questions, please contact
Ohio’s State mailbox at Ohio.OESE@ed.gov.

                                                      Sincerely,
aura Jimenez
                                             Jimenez Laura Jimenez

                                                      Laura Jimenez
                                                      Director, Office of State and Grantee Relations




1
    8.15.22-Update_MOE-Chart-with-waiver-FAQs-Rounding-and-Appendices-Updated1.pdf
2
    https://oese.ed.gov/files/2024/04/Ohio-Appendix-C.pdf


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