United States Department of Education to the Honorable Andy Beshear, Governor of Kentucky (June 20, 2024)
Summary
A June 20, 2024 letter from Laura Jimenez, Director of the Office of State and Grantee Relations, to Governor Andy Beshear and Interim Commissioner of Education Robin Fields Kinney approves Kentucky's request to waive the FY 2023 maintenance of effort requirement for elementary and secondary education under the American Rescue Plan Act. The Department says Kentucky fell short of the requirement by 7.1 percentage points, a $945.6 million shortfall, which Kentucky attributed to higher State spending on Medicaid, unemployment insurance and natural disaster recovery. It credits data showing support rose from an average of $5,219,706,861 in the baseline years to $5,618,771,656 in FY 2023, with per-pupil spending up 9 percent.
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“United States Department of Education to the Honorable Andy Beshear, Governor of Kentucky (June 20, 2024).”
Original at www.ed.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-education-fy-2023-waiver-approved-www-ed-gov-7b0a029923-5eafacb97c/
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UNITED STATES DEPARTMENT OF EDUCATION
OFFICE OF ELEMENTARY AND SECONDARY EDUCATION
June 20, 2024
The Honorable Andy Beshear
Governor of Kentucky
700 Capitol Ave., Suite 100
Frankfort, KY 40601
The Honorable Robin Fields Kinney
Interim Commissioner of Education
Kentucky Department of Education
300 Sower Blvd., 5th Floor
Frankfort, KY 40601
Dear Governor Beshear and Commissioner Kinney:
I am writing in response to the Kentucky Department of Education’s March 14, 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, Kentucky assured it would maintain effort, as defined in the ARP Act, for both
elementary and secondary education and higher education in 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 Kentucky’s request to
waive the MOE requirements 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 in FY 2023.
This determination is based on the totality of the circumstances, including review of Kentucky’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
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 Andy Beshear and Robin Fields Kinney
approach to MOE waiver requests as noted in the Frequently Asked Questions document1; and
consideration of the impact on students.
Based on the information submitted, Kentucky failed to meet the FY 2023 MOE requirement for
elementary and secondary education by 7.1 percentage points (a $945.6 million shortfall).
Kentucky noted that the decrease in proportional education spending was due to increases in
overall State spending on Medicaid costs, unemployment insurance benefits, and natural disaster
recovery.
In determining whether to grant a State an MOE waiver, we may consider factors such as
increased State support for education. Kentucky submitted data showing it increased overall
support for elementary and secondary education from an average of $5,219,706,861 in the
baseline years to $5,618,771,656 in FY 2023. Kentucky also increased FY 2023 per-pupil
spending compared to the baseline for elementary and secondary education by 9 percent, or $757
per student. Kentucky also demonstrated a commitment to State support for elementary and
secondary education beyond FY 2023. Specifically, Kentucky increased base school foundation
formula funding per-pupil from $4,000 to $4,200, generating an additional $122.9 million in
elementary and secondary education funding in FY 2024 compared to the previous biennium.
Kentucky also made additional investments in school infrastructure and school employee health
benefits.
Thank you for your ongoing commitment to education. If you have any questions, please contact
the Kentucky State mailbox at Kentucky.OESE@ed.gov.
Sincerely,
aura Jimenez
Laura Jimenez
Laura Jimenez
Laura Jimenez
Director, Office of State and Grantee Relations
1
https://oese.ed.gov/files/2022/09/8.15.22-Update_MOE-Chart-with-waiver-FAQs-Rounding-and-Appendices-
Updated1.pdf
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