Secretary Cardona, U.S. Department of Education — Obm.ohio.gov (March 4, 2024)

Summary

A letter dated March 4, 2024 from the State of Ohio to Secretary Cardona requesting a waiver of the fiscal year 2023 higher education maintenance of effort requirement under section 2004(a) of the American Rescue Plan Act. It says State support for higher education increased by $171.4 million (6.7%) in fiscal year 2023 compared with baseline averages, but grew more slowly than other spending categories, so Ohio did not meet the proportional requirement. It attributes the faster growth in other categories to pandemic-related spending on broadband, brownfield remediation, economic development and low-income energy assistance, additional transportation funds from the infrastructure law, and justice and human services costs.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

                                                                                                    Obm.ohio.gov



March 4, 2024


Secretary Cardona
U.S. Department of Education
Lyndon Baines Johnson Department of Education Building
400 Maryland Ave, SW
Washington, D.C. 20202


Subject: FY 2023 MOE requirement for higher education under section 2004(a) of the ARP Act.


Dear Secretary Cardona,

The State of Ohio respectfully requests a waiver of higher education Maintenance of Effort (MOE) requirements
under section 2004(a) of ARP (American Rescue Plan Act). To meet MOE requirements under ARP, FY 2023 higher
education spending must be at least proportional relative to overall spending averaged during fiscal years 2017,
2018, and 2019. Compared to baseline fiscal year averages, State support for higher education increased by $171.4
million (6.7%) in fiscal year 2023. However, relative to other spending categories, higher education grew at a slower
pace. As a result, Ohio did not meet fiscal year 2023 MOE requirements defined under Section 2004(a) of ARP.

While state support for higher education has grown over the years, other spending categories have received
additional investment as well. Proportionally, the general government, justice, and human services spending
categories have grown faster than higher education relative to baseline year spending. Often, new, or additional
spending addressed issues caused by the pandemic. For example, broadband connectivity was identified as a barrier
to accessing the modern economy, education system, and healthcare. As a result, significant state support was
invested to expand access. In addition to broadband, new resources were allocated to support brownfield
remediation, economic development projects, and low-income energy assistance. Finally, the general government
category, through the Ohio Department of Transportation, received and expended additional state funds made
available by the federal Investments, Infrastructure, and Jobs Act (IIJA/BIL).

The justice and human services categories followed general government in FY 2023 growth over baseline due to
routine wage and contract growth within the Department of Rehabilitation and Correction and increases to county
reimbursements for indigent defense through the Office of the Ohio Public Defender. FY 2023 growth over baseline
for human services was due to additional investments made to children’s services, which expanded foster care
recruitment, assisted caregivers, and helped establish permanent homes for children in foster care. Due to the
programs and priorities outlined, higher education spending has slightly decreased as a percentage of the overall
State budget in FY 2023 compared to baseline year averages.

Looking ahead, higher education appropriations total $3.0 billion in FY 2024, an increase of $303.8 million (11.2%)
from FY 2023 actual expenditure levels. This additional investment, coupled with declining enrollment, demonstrates
the State’s commitment to higher education on a category and per pupil basis. Enclosed, please find additional
waiver materials including narrative to required questions, and Ohio’s MOE waiver request form (Appendix C: MOE
Waiver Request). If further information is needed, please contact Stacie Massey, Ohio Office of Budget and
Management, Grants and Financial Reporting, at stacie.massey@obm.ohio.gov or 614-338-4795.


Very respectfully yours,




Kimberly A. Murnieks
Director, Ohio Office of Budget and Management


File and source

File

department-of-education-pdf-www-ed-gov-fdb3e7d1b5.pdf

Size

71,823 bytes

SHA-256

f28b8b9a91fd18a139ba293701579f87d38c240a4c44d7fc750b0b8ef43fcabe

Our copy

department-of-education-pdf-www-ed-gov-fdb3e7d1b5.pdf

Original

www.ed.gov