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Final Requirements-American Rescue Plan Act Elementary and Secondary School Emergency Relief Fund (rule, 87 FR 34790, June 8, 2022)

Summary

Final requirements from the Office of Elementary and Secondary Education, Department of Education, for the American Rescue Plan Act Elementary and Secondary School Emergency Relief Fund (ARP ESSER). They were published in the Federal Register on June 8, 2022 (Vol. 87, No. 110), Docket ID ED–2021–OESE–0116. The Department states that the requirements are intended to promote accountability and transparency by requiring each State educational agency (SEA) to post on its website maintenance of equity information for each applicable local educational agency (LEA). In response to comments, the Department changed the initial reporting deadline to July 8, 2022. The requirements are effective July 8, 2022.

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Cite this document

“Final Requirements-American Rescue Plan Act Elementary and Secondary School Emergency Relief Fund (rule, 87 FR 34790, June 8, 2022).” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/final-requirements-american-rescue-plan-act-elementary-and-secondary-s-e7cb81522f/, SHA-256 2bf717fc89005997c2572a62c20343ef60b2b38156b221dfea38a3613776b907.

Full text

                                             34790             Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Rules and Regulations

                                             DEPARTMENT OF EDUCATION                                 equity. The final requirements also                       Changes: The Department changed
                                                                                                     clarify the requirement for an SEA to                  the initial reporting deadline to July 8,
                                             34 CFR Chapter II                                       describe how it is ensuring LEAs are                   2022.
                                             [Docket ID ED–2021–OESE–0116]                           complying with the maintenance of                         Comment: Several commenters
                                                                                                     equity requirements. Additional                        expressed concern that they might be
                                             Final Requirements—American Rescue                      technical edits are made to the final                  unable to gather LEA-level maintenance
                                             Plan Act Elementary and Secondary                       requirements for clarity.                              of equity data and post the data on their
                                             School Emergency Relief Fund                               Public Comment: In response to our                  SEA website for each LEA in the State
                                                                                                     invitation in the NPR, 12 parties                      that is not excepted from LEA-level
                                             AGENCY: Office of Elementary and                                                                               maintenance of equity requirements in
                                             Secondary Education, Department of                      submitted comments on the proposed
                                                                                                     requirement.                                           time for the proposed December 31,
                                             Education.                                                                                                     2022, deadline. Commenters specifically
                                             ACTION: Final requirements.                                Generally, we do not address
                                                                                                     technical and other minor changes, or                  noted that Department guidance on
                                                                                                     suggested changes the law does not                     reporting per-pupil expenditure data on
                                             SUMMARY: The Department of Education
                                                                                                     authorize us to make under the                         Title I, Part A report cards routinely
                                             (Department) announces requirements
                                                                                                     applicable statutory authority. In                     allows SEAs and LEAs to update report
                                             for the American Rescue Plan
                                                                                                     addition, we do not address general                    cards with expenditure information as
                                             Elementary and Secondary School
                                                                                                     comments that raised concerns not                      soon as it becomes available, which is
                                             Emergency Relief (ARP ESSER) Fund,
                                                                                                     directly related to the NPR.                           usually after December of each year and
                                             under the American Rescue Plan Act of
                                                                                                                                                            may be as late as the following June.
                                             2021 (ARP Act). These requirements are                     Analysis of Comments and Changes:
                                             intended to promote accountability and                                                                            Discussion: We appreciate the
                                                                                                     An analysis of the comments and of                     commenters’ concerns and note that the
                                             transparency by requiring each State                    changes in the requirements since
                                             educational agency (SEA) to post on its                                                                        LEA-level maintenance of equity data
                                                                                                     publication of the NPR follows.                        for each LEA in the State that is not
                                             website maintenance of equity
                                                                                                        Comment: Some commenters,                           excepted from LEA-level maintenance
                                             information for each applicable local
                                                                                                     including a few States, expressed                      of equity requirements during fiscal year
                                             educational agency (LEA).
                                                                                                     concern that the proposed timeline to                  2022, which is the 2021–2022 school
                                             DATES: These requirements are effective                 publish LEA-level maintenance of                       year, is due December 31, 2022. The
                                             July 8, 2022.                                           equity data on an SEA’s website                        Department recognizes that this may not
                                             FOR FURTHER INFORMATION CONTACT: Britt                  regarding which LEAs are excepted                      align with per-pupil expenditure data
                                             Jung, U.S. Department of Education, 400                 from the maintenance of equity                         published for Title I, Part A report
                                             Maryland Avenue SW, Room 3W113,                         requirements does not leave sufficient                 cards. However, this reporting
                                             Washington, DC 20202. Telephone:                        time for the SEA to prepare its data for               requirement simply allows, but does not
                                             (202) 453–5563. Email: ESSERF@ed.gov.                   submission. The commenters suggested                   require, LEAs to use such expenditure
                                                If you use a telecommunications                      that the proposed March 31, 2022,                      data for the purpose of demonstrating
                                             device for the deaf (TDD) or a text                     deadline be extended until June 30,                    compliance with the maintenance of
                                             telephone (TTY), call the Federal Relay                 2022. One commenter suggested altering                 equity requirements. An LEA may also
                                             Service (FRS), toll free, at 1–800–877–                 the date of publication of the                         rely on allocations or budget data to
                                             8339.                                                   maintenance of equity data to better                   determine whether it maintained equity.
                                                Purpose of Program: The ARP ESSER                    align with the current annual reporting                Further, because each SEA collects and
                                             Fund provides nearly $122 billion to                    timeline for all ARP ESSER funds,                      finalizes per-pupil expenditure data on
                                             SEAs and LEAs to help them safely                       which begins in May 2022. In response                  a different timeline, the Department is
                                             reopen and sustain the safe operation of                to comments and discussions with key                   allowing SEAs to request a reasonable
                                             schools and address the impacts of the                  stakeholders, we will set the deadline at              extension of the December 31, 2022,
                                             COVID–19 pandemic by addressing                         30 days from the publication of this                   reporting deadline depending on State-
                                             students’ academic, social, emotional,                  Federal Register notice.                               specific circumstances.
                                             and mental health needs. As a condition                                                                           Changes: None.
                                                                                                        Discussion: The Department believes
                                             of receiving the funds, each SEA and
                                                                                                     it is important for SEAs to publicly                      Comment: Several commenters
                                             LEA must comply with multiple
                                                                                                     report information and data on those                   expressed concern about how staffing
                                             requirements, including the
                                                                                                     LEAs that must comply with the                         decisions within an LEA impact its
                                             maintenance of equity requirements in
                                                                                                     maintenance of equity requirements in a                ability to maintain equity. For example,
                                             section 2004 of the ARP Act.
                                                                                                     timely manner and that SEAs should                     a commenter noted that hiring new staff
                                               Program Authority: ARP Act, Public Law                already have the data requested in order               could create a decline in spending, as
                                             117–2, March 11, 2021.                                  to ensure that LEAs are complying with                 newer staff are typically less expensive
                                                We published a notice of proposed                    maintenance of equity requirements. At                 than leaving or retiring staff, even
                                             requirement (NPR) in the Federal                        the same time, the Department                          though staff numbers remain the same.
                                             Register on January 3, 2022 (87 FR 57).                 understands the difficulties SEAs may                  In this case, the LEA would maintain
                                             The NPR contained background                            have in accurately reporting data on a                 staffing equity under section
                                             information and our reasons for                         condensed timeline. As a result, the                   2004(c)(1)(B) of the ARP Act, but not
                                             proposing the requirement.                              Department has adjusted the timeline to                maintain funding equity under section
                                                As discussed in the Analysis of                      align with the ARP ESSER annual                        2004(c)(1)(A) of the ARP Act because




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                                             Comments and Changes section                            reporting period and to better fit the                 the new staff salaries cost less.
                                             elsewhere in this notice, there are a few               needs of SEAs, while also ensuring                        Commenters also discussed whether a
                                             differences between the proposed and                    timely identification so that                          shift to using contracted supports would
                                             final requirements. The final                           stakeholders in each State are aware of                look like a decline in the number of full-
                                             requirements change the timeline for                    which LEAs must meet the maintenance                   time equivalent (FTE) staff while
                                             publishing information on LEAs that are                 of equity requirements prior to State and              actually reflecting an increase in quality
                                             excepted from local maintenance of                      local allocations in FY 2023.                          services.


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                                                               Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Rules and Regulations                                         34791

                                                Discussion: Under section 2004(c)(1)                    Changes: The Department clarified                   the financial resources of the LEA, as
                                             of the ARP Act, an LEA must maintain                    that paragraph (d) of the final                        determined by the Secretary of the U.S.
                                             equity two ways: per-pupil funding and                  requirements applies to reporting data                 Department of Education.
                                             FTE staffing. The final requirements                    in paragraphs (c)(1) and (2) but not (c)(3)               The Secretary has determined that an
                                             ensure transparency on how LEAs that                    and (4) of the final requirements.                     LEA that did not have an aggregate
                                             are not excepted from local maintenance                    Comment: One commenter noted the                    reduction in combined State and local
                                             of equity are maintaining equity in both                complexity of the maintenance of equity                per-pupil funding in FY 2022 compared
                                             ways. When determining how to                           requirements and suggested revisions to                to FY 2021, or in FY 2023 compared to
                                             maintain staffing equity, an LEA must                   the regulatory scheme to allow for                     FY 2022, has demonstrated an
                                             include all employees, including those                  compliance to be met through either                    exceptional or uncontrollable
                                             hired by contract who perform school-                   meeting the per-pupil spending                         circumstances to warrant an exception
                                             level services. Therefore, any shift from               requirement in section 2004(c)(1)(A) of                from maintaining equity for that fiscal
                                             direct employees to contracted services                 the ARP Act or the full-time-equivalent                year.
                                             should not impact an LEA’s ability to                   staff requirement in section                              By narrowing the number of LEAs in
                                             maintain staffing equity but may impact                 2004(c)(1)(B) of the ARP Act.                          the State that must comply with the
                                             whether an LEA maintains fiscal equity.                    Discussion: Each LEA must                           local maintenance of equity
                                                Similarly, replacing experienced staff               demonstrate that it has maintained                     requirements, each SEA can then review
                                             with less experienced staff will not                    equity for each high-poverty school in                 funding and FTE staffing data within
                                             affect an LEA’s ability to maintain                     two ways as a condition of receiving                   the remaining LEAs and provide
                                             staffing equity. It may, however, affect                ARP ESSER funds. Under section                         technical assistance on how an LEA can
                                             the LEA’s ability to maintain fiscal                    2004(c) of the ARP Act, for each school                ensure compliance for FY 2022 and FY
                                             equity, depending on other fiscal                       identified by the LEA as a high-poverty                2023. If an LEA does not maintain
                                             considerations in the LEA for the                       school, the LEA may not, in FY 2022 or                 equity and cannot make adjustments in
                                             applicable year. For example, consistent                FY 2023, (1) reduce per-pupil funding                  that year, then the LEA may remedy this
                                             with the intent of the maintenance of                   (from combined State and local funding)                violation by making adjustments to
                                                                                                     by an amount that exceeds the total                    funding and FTE staffing in the next
                                             equity requirements, in order to
                                                                                                     reduction, if any, in LEA per-pupil                    year to ensure that high-poverty schools
                                             maintain fiscal equity where an
                                                                                                     funding for all schools served by the                  in the LEA are treated equitably. The
                                             experienced teacher receiving a higher
                                                                                                     LEA in such fiscal year; or (2) reduce                 Department will continue to provide
                                             salary is replaced with a less
                                                                                                     the number of FTE staff per-pupil by an                technical assistance to States on how to
                                             experienced teacher, the LEA may need
                                                                                                     amount that exceeds the total reduction,               maintain equity.
                                             to provide additional fiscal resources
                                                                                                     if any, in FTE staff per-pupil in all                     Changes: None.
                                             and supports to meet the needs of                                                                                 Comment: One commenter
                                             students in high-poverty schools.                       schools served by the LEA in such fiscal
                                                                                                     year. The statute does not allow an LEA                recommended that the Department
                                                Changes: None.                                                                                              create an optional reporting template for
                                                Comment: Several commenters                          to comply with only one of the two
                                                                                                     requirements.                                          SEAs to use to report the required
                                             asserted that proposed paragraph (d)                                                                           information in paragraph (a) on
                                                                                                        Changes: None.
                                             would allow LEAs to use per-pupil                          Comment: Several commenters                         excepted LEAs.
                                             expenditures to demonstrate how an                      requested further guidance on the                         Discussion: Each State must publish
                                             LEA is maintaining staffing equity                      options available to SEAs in designing                 the names of LEAs that are excepted
                                             under section 2004(c)(1)(B).                            and implementing their own oversight                   under each exception category detailed
                                             Commenters noted that the required                      processes to ensure LEAs comply with                   in paragraph (a). Each State must
                                             FTE analysis is distinct from reporting                 the maintenance of equity requirements.                determine the most appropriate way to
                                             on student-level spending. These                        The commenters requested examples of                   publish and list this information so that
                                             commenters contended that offering                      allowable processes and parameters on                  parents, families, and the general public
                                             States this flexibility would be at the                 how an LEA might remedy any violation                  in the State will be able to access and
                                             cost of representative data and                         of the maintenance of equity                           understand the information. To support
                                             requested further detailed guidance                     requirements.                                          States with this requirement, the
                                             should we choose to retain this                            Discussion: The final reporting                     Department will make available on its
                                             flexibility.                                            requirements are established as a tool                 website an example of how a State may
                                                Discussion: The benefit of publicly                  for States to identify and work with                   publicly post this information, for
                                             posting local maintenance of equity data                those LEAs that should be targeted for                 optional State use.
                                             is to facilitate public accountability so               technical assistance to ensure their                      Change: None.
                                             that parents and families will be able to               high-poverty schools are protected from                   Comment: Several commenters
                                             access publicly available information on                any reduction of per-pupil funding by                  expressed their support for proposed
                                             how each LEA in the State is                            an amount that exceeds the overall per-                paragraph (b) to publish a general
                                             maintaining both fiscal and staffing                    pupil reduction in the LEA. The ARP                    description of how the SEA is ensuring
                                             equity. The Department agrees with the                  Act excepts an LEA from the local                      that its high-poverty schools are
                                             commenters that the flexibility in                      maintenance of equity requirements if                  protected from any reduction of per-
                                             proposed paragraph (d) aligns only with                 the LEA:                                               pupil funding by an amount that
                                             the maintenance of equity per-pupil                        • has a total enrollment of less than               exceeds the overall per-pupil reduction
                                             funding analysis in section                             1,000 students,                                        in the LEA, if any, such that the LEA




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                                             2004(c)(1)(A) of the ARP Act. As a                         • operates a single school,                         can make any necessary adjustments in
                                             result, the final requirements clarify that                • serves all students within each                   a timely manner. The commenters
                                             this flexibility applies only to                        grade span with a single school, or                    suggested that such description be filed
                                             demonstrating compliance for per-pupil                     • demonstrates an exceptional or                    as a supplement to the approved ARP
                                             funding, and not maintaining staffing                   uncontrollable circumstance, such as                   ESSER State Plan. However, some
                                             equity under section 2004(c)(1)(B) of the               unpredictable changes in student                       commenters requested that the
                                             ARP Act.                                                enrollment or a precipitous decline in                 Department reduce the burden of this


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                                             34792             Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Rules and Regulations

                                             requirement on SEAs when establishing                   not always make sense alongside other                  exception reasons. As a result, the
                                             the final requirements.                                 data sources. Another commenter                        Department expects an SEA to identify
                                                Discussion: The benefit of publicly                  similarly requested further guidance on                each LEA that fits within each of the
                                             posting the local maintenance of equity                 this potential use of data and noted that              five categories of exceptions listed in
                                             data is to facilitate public accountability             it is hard to provide oversight on per-                paragraph (a). An SEA may not just list
                                             so that parents, families, and other                    pupil expenditure data before the end of               all LEAs in the State that are excepted
                                             education stakeholders will be able to                  the school year, when they can no                      without noting a reason why they are
                                             access publicly available information on                longer be adjusted.                                    excepted. If more than one exception
                                             how LEAs are maintaining fiscal and                        Discussion: The Department                          applies to an LEA (e.g., the LEA
                                             staffing equity. By requiring SEAs to                   appreciates the concerns of the                        operates a single school (paragraph
                                             publish information and data on how                     commenters and notes that the                          (a)(1)(i)) and its enrollment is under
                                             LEAs are maintaining equity, the                        increased flexibility in the use of per-               1,000 (paragraph (a)(1)(ii))), an SEA
                                             Department is providing the public                      pupil expenditure data is a response to                should have a consistent process for
                                             access to this information. The                         prior public feedback requesting that the              categorizing excepted LEAs into at least
                                             Department has determined that the                      Department provide this flexibility to                 one of the exceptions listed in
                                             general description in proposed                         demonstrate compliance with                            paragraph (a)(1)(i)–(v).
                                             paragraph (b) is necessary to provide                   maintenance of equity because many                        Changes: The Department clarified
                                             transparency on efforts the SEA is                      LEAs do not budget or allocate spending                paragraph (a)(1) to indicate that an SEA
                                             making to ensure that those LEAs that                   at the school level. Given that the                    must identify a reason each LEA is
                                             did not maintain equity take remedial                   maintenance of equity requirements                     excepted from the maintenance of
                                             efforts. As such, the Department has                    apply to two fiscal years and are not an               equity requirements.
                                             clarified this description in the final                 annual reporting requirement, the                         Comment: Multiple commenters
                                             requirements. Further, although we                      Department is hesitant to require all                  asked whether LEAs may continue to
                                             appreciate the commenters’ suggestion,                  SEAs and LEAs to change reporting                      apply to the Department for an
                                             we decline to require that States submit                structures and systems for this ARP Act                exception to the local maintenance of
                                             this information as an amendment to                     requirement. As a result, the                          equity requirements under section
                                             their ARP ESSER State Plan.                             Department determined that the need                    2004(c)(2)(D) of the ARP Act after the
                                                Changes: The Department clarified                    for flexibility and transparency within                SEA’s reporting deadline.
                                             the description in paragraph (b).                       each LEA and SEA outweighs the need                       Discussion: In order for each SEA to
                                                Comment: In the preamble to the                      for consistent data across all LEAs in the             accurately report on which LEAs are
                                             proposed requirement, the Department                    country.                                               excepted from the maintenance of
                                             solicited feedback on whether an SEA                       In response to the challenge that one               equity requirements for FY 2022, all
                                             should be able to publish general                       commenter identified regarding the                     LEAs that are able to demonstrate an
                                             information on how LEAs in the State                    flexibility to use per-pupil expenditure               exceptional or uncontrollable
                                             are complying with maintenance of                       data while also ensuring that                          circumstance under section
                                             equity rather than the specific proposed                adjustments may be made to comply                      2004(d)(2)(D) of the ARP Act in FY 2022
                                             requirement. One commenter                              with the requirement, the Department                   should do so prior to the updated July
                                             specifically recommended against                        acknowledges that LEAs using such per-                 8, 2022, reporting deadline. LEAs that
                                             allowing SEAs to alternatively publish                  pupil expenditure flexibility will not                 did not have an aggregate reduction in
                                             general data for maintaining equity and                 know whether they maintained equity                    combined State and local per-pupil
                                             cautioned that it would not allow for a                 until after the school year ends and,                  funding in FY 2022 compared to FY
                                             meaningful evaluation of whether the                    thus, will not be able to remedy a                     2021, or in FY 2023 compared to FY
                                             maintenance of equity requirements                      maintenance of equity violation for that               2022, should submit Appendix B to the
                                             were met by LEAs in the State. This                     school year. In deciding whether to use                SEA. If an LEA did have an aggregate
                                             commenter instead recommended an                        per-pupil expenditure data, an LEA may                 reduction in funding, but otherwise is
                                             extended timeline to allow SEAs to                      review prior-year per-pupil expenditure                able to demonstrate an exception or
                                             gather the specific information and data                data to inform its approach to                         uncontrollable circumstance, then an
                                             in the proposed requirement.                            monitoring and assess the likelihood of                LEA should submit an exception for FY
                                                Discussion: The Department                           a maintenance of equity violation. Also,               2022 to the Department by July 8, 2022
                                             appreciates the feedback that allowing                  as noted in response to a prior                        and notify the SEA of the request. For
                                             an SEA to publish general information                   comment, if an LEA does not maintain                   FY 2023, LEAs should submit exception
                                             rather than the specific data and                       equity and cannot make adjustments in                  requests by the November 1, 2022,
                                             information proposed by the                             that year, the LEA may make                            reporting deadline. The Department
                                             Department may result in less                           adjustments to funding and FTE staffing                makes SEAs aware of final
                                             meaningful information to parents,                      in the next year to ensure that high-                  determinations in cases when an LEA
                                             families, and stakeholders. As a result,                poverty schools in the LEA are treated                 applies directly to the Department for an
                                             the Department declines to include this                 equitably.                                             exception. (Note: The requests for
                                             alternative approach in the final                          Changes: None.                                      exceptions referenced in this response
                                             requirements and instead will require                      Comment: Multiple commenters                        are for LEAs that cannot sign Appendix
                                             specific information and data from all                  requested confirmation that an SEA                     B at https://oese.ed.gov/files/2021/12/
                                             States.                                                 only needs to list excepted LEAs, and                  Maintenance-of-Equity-updated-FAQs_
                                                Change: None.                                        not provide detail on why they are                     12.29.21_Final.pdf. LEAs that can sign




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                                                Comment: One commenter asserted                      excepted.                                              Appendix B do so and notify their SEA.)
                                             that current per-pupil expenditure data                    Discussion: Paragraph (a)(1)                           Changes: None.
                                             are often inconsistent and not always                   specifically notes that an SEA must                       Comment: One commenter objected to
                                             useful to parents and advocates and                     identify each LEA in the State that is                 the $60,000 cost assumption in the cost-
                                             requested a standardized expenditure                    excepted from LEA-level maintenance                    benefit analysis as unrealistic.
                                             reporting framework among LEAs. The                     of equity requirements under section                      Discussion: We appreciate the
                                             commenter noted that available data do                  2004(c)(2) of the ARP Act for each of the              commenter’s concerns and recognize the


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                                                               Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Rules and Regulations                                           34793

                                             amount of work required to meet these                   description of how the SEA will ensure                 published in a way that is machine-
                                             requirements as a whole. We further                     that each LEA that is not excepted from                readable and accessible, in a location
                                             reviewed our cost- benefit analysis of                  LEA-level maintenance of equity                        accessible for parents and families. LEA-
                                             the final requirement and provided                      requirements is ensuring that its high-                and school-level data must be listed by
                                             additional information regarding the                    poverty schools are protected from any                 the applicable National Center for
                                             accuracy of the cost assumption in the                  reduction of per-pupil funding by an                   Education Statistics (NCES) LEA ID and
                                             Regulatory Impact Analysis section. The                 amount that exceeds the overall per-                   school ID, as applicable.
                                             cost-benefit analysis is not intended to                pupil reduction in the LEA, if any, such
                                                                                                     that the LEA can make any necessary                    Executive Orders 12866 and 13563
                                             address the cost of compliance with the
                                             entire maintenance of equity                            adjustments in a timely manner                         Regulatory Impact Analysis
                                             requirements; rather, the analysis is                   including information on when the SEA
                                                                                                                                                               Under Executive Order 12866, the
                                             intended to reflect the cost of the SEA                 will determine LEAs are not compliant
                                                                                                                                                            Office of Management and Budget
                                             publishing data that already exist. We                  and the date that the SEA will require
                                                                                                                                                            (OMB) must determine whether this
                                             believe that the burden outlined in the                 non-compliant LEAs to describe what
                                                                                                                                                            regulatory action is ‘‘significant’’ and,
                                             rule could be offset with ESSER                         adjustments the LEA will make to be in
                                                                                                                                                            therefore, subject to the requirements of
                                             administrative cost funds under section                 compliance prior to the start of the next
                                                                                                                                                            the Executive order and subject to
                                             2001(f)(4) the ARP Act.                                 school year.
                                                                                                        (c) By December 31 following each                   review by OMB. Section 3(f) of
                                                Changes: None.                                                                                              Executive Order 12866 defines a
                                                Final Requirements:                                  applicable school year (e.g., December
                                                The Department establishes the                       31, 2022, for FY 2022, which is the                    ‘‘significant regulatory action’’ as an
                                             following requirements for this program.                2021–2022 school year) or such other                   action likely to result in a rule that
                                             We may apply these requirements in                      date as the Department may approve                     may—
                                             any year in which this program is in                    upon request from an SEA due to the                       (1) Have an annual effect on the
                                             effect.                                                 SEA’s specific circumstances, an SEA                   economy of $100 million or more, or
                                                (a) By July 8, 2022, for FY 2022,                    must publish the following LEA-level                   adversely affect a sector of the economy,
                                             which is the 2021–2022 school year,                     maintenance of equity data on its                      productivity, competition, jobs, the
                                             and by November 1, 2022, for FY 2023,                   website for each LEA in the State that                 environment, public health or safety, or
                                             which is the 2022–2023 school year, a                   is not excepted from LEA-level                         State, local, or Tribal governments or
                                             State educational agency (SEA) must                     maintenance of equity requirements                     communities in a material way (also
                                             publish the following local educational                 under paragraph (a)(1):                                referred to as an ‘‘economically
                                             agency (LEA)-level maintenance of                          (1) The per-pupil amount of funding                 significant’’ rule);
                                             equity data on its website:                             for each high-poverty school in the LEA                   (2) Create serious inconsistency or
                                                (1) The identity of each LEA in the                  in FYs 2021, 2022, and 2023, as                        otherwise interfere with an action taken
                                             State that is excepted from LEA-level                   applicable for the year for which the                  or planned by another agency;
                                             maintenance of equity requirements                      data are published.                                       (3) Materially alter the budgetary
                                             under section 2004(c)(2) of the ARP Act                    (2) The per-pupil amount of funding                 impacts of entitlement grants, user fees,
                                             and indicate the reason for exception as                in the aggregate for all schools in the                or loan programs or the rights and
                                             follows:                                                LEA, on a districtwide basis or by grade               obligations of recipients thereof; or
                                                (i) The LEA has a total enrollment of                span, in FYs 2021, 2022, and 2023, as                     (4) Raise novel legal or policy issues
                                             less than 1,000 students.                               applicable for the year for which the                  arising out of legal mandates, the
                                                (ii) The LEA operates a single school.               data are published.                                    President’s priorities, or the principles
                                                (iii) The LEA serves all students                       (3) The per-pupil number of full-time-              stated in the Executive Order.
                                             within each grade span with a single                    equivalent (FTE) staff (which may be                      This final regulatory action is not a
                                             school.                                                 indicated as the number of students per                significant regulatory action subject to
                                                (iv) The LEA has been granted an                     FTE staff) for each high-poverty school                review by OMB under section 3(f) of
                                             exception by the Department due to an                   in the LEA in FYs 2021, 2022, and 2023,                Executive Order 12866.
                                             exceptional or uncontrollable                           as applicable for the year for which the                  We have also reviewed this final
                                             circumstance under section                              data are published.                                    regulatory action under Executive Order
                                             2004(c)(2)(D) of the ARP Act.                              (4) The per-pupil number of FTE staff               13563, which supplements and
                                                (v) The LEA has certified to the SEA                 (which may be indicated as the number                  explicitly reaffirms the principles,
                                             that it did not have an aggregate                       of students per FTE staff) in the                      structures, and definitions governing
                                             reduction in combined State and local                   aggregate for all schools in the LEA, on               regulatory review established in
                                             per-pupil funding, thereby justifying an                a districtwide basis or by grade span, in              Executive Order 12866. To the extent
                                             exceptional or uncontrollable                           FYs 2021, 2022, and 2023, as applicable                permitted by law, Executive Order
                                             circumstance under section                              for the year for which the data are                    13563 requires that an agency—
                                             2004(c)(2)(D) of the ARP Act, in the                    published.                                                (1) Propose or adopt regulations only
                                             fiscal year for which the exception                        (5) Whether the LEA did not maintain                on a reasoned determination that their
                                             applies.                                                equity for any high-poverty school in FY               benefits justify their costs (recognizing
                                                (2) For each LEA that is not excepted                2022 or 2023, as applicable for the year               that some benefits and costs are difficult
                                             from the LEA-level maintenance of                       for which the data are published.                      to quantify);
                                             equity requirements under paragraph                        (d) For the purpose of paragraph (c)(1)                (2) Tailor its regulations to impose the
                                             (a)(1), the identity of each ‘‘high                     and (2), an SEA and its LEAs may rely                  least burden on society, consistent with




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                                             poverty’’ school, as defined in section                 on the applicable per-pupil expenditure                obtaining regulatory objectives and
                                             2004(d)(4) of the ARP Act, in that LEA.                 data required to be included on the                    taking into account—among other things
                                                (b) By July 8, 2022 for FY 2022, which               State report card pursuant to section                  and to the extent practicable—the costs
                                             is the 2021–2022 school year and by                     1111(h)(1)(C)(x) of the Elementary and                 of cumulative regulations;
                                             November 1, 2022 for FY 2023, which                     Secondary Education Act of 1965.                          (3) In choosing among alternative
                                             is the 2022–2023 school year, each SEA                     (e) All data required to be published               regulatory approaches, select those
                                             must publish on its website a                           under paragraphs (a)-(d) must be                       approaches that maximize net benefits


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                                             34794             Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Rules and Regulations

                                             (including potential economic,                          Potential Costs and Benefits                           substantial number of small entities.
                                             environmental, public health and safety,                   The Department has analyzed the                     The U.S. Small Business Administration
                                             and other advantages; distributive                      costs and benefits of complying with the               Size Standards define ‘‘small entities’’
                                             impacts; and equity);                                   final requirements. Due to the varying                 as for-profit or nonprofit institutions
                                                                                                     capacity and administrative structures                 with total annual revenue below
                                               (4) To the extent feasible, specify
                                                                                                     of affected entities, we cannot estimate,              $7,000,000 or, if they are institutions
                                             performance objectives, rather than the
                                                                                                     with absolute precision, the likely                    controlled by small governmental
                                             behavior or manner of compliance a
                                                                                                     effects of the final requirements.                     jurisdictions (that are comprised of
                                             regulated entity must adopt; and
                                                                                                     However, as discussed below, we                        cities, counties, towns, townships,
                                                (5) Identify and assess available                    estimate that the final requirements will              villages, school districts, or special
                                             alternatives to direct regulation,                      have a net cost of $60,000 over two                    districts), with a population below
                                             including economic incentives—such as                   years.                                                 50,000.
                                             user fees or marketable permits—to                         As an initial matter, the Department                   This final regulatory action would
                                             encourage the desired behavior, or                      recognizes that staff at SEAs and LEAs                 affect only States, none of which is a
                                             provide information that enables the                    nationwide expend considerable effort                  small entity for the purpose of this
                                             public to make choices.                                 every year on education finance, both in               analysis.
                                               Executive Order 13563 also requires                   their general supervisory capacity and
                                                                                                                                                            Paperwork Reduction Act
                                             an agency ‘‘to use the best available                   as part of their efforts to comply with
                                             techniques to quantify anticipated                      the maintenance of equity requirements                    The final requirements contain
                                             present and future benefits and costs as                in the ARP Act. The analysis below is                  information collection requirements that
                                             accurately as possible.’’ The Office of                 not an attempt to quantify those efforts.              are approved by OMB under OMB
                                             Information and Regulatory Affairs of                   Rather, this analysis is limited only to               control number 1810–0759.
                                             OMB has emphasized that these                           the incremental cost of complying with                    Intergovernmental Review: The ARP
                                             techniques may include ‘‘identifying                    the final requirements (e.g., through                  ESSER program is not subject to
                                             changing future compliance costs that                   public reporting).                                     Executive Order 12372 and the
                                             might result from technological                            We assume that a representative
                                                                                                                                                            regulations in 34 CFR part 79.
                                             innovation or anticipated behavioral                    (management analyst at $53.79 per
                                                                                                     hour) from each of the 50 States, the                     Accessible Format: On request to the
                                             changes.’’                                                                                                     program contact person listed under FOR
                                                                                                     District of Columbia, and the
                                                We are issuing these final                           Commonwealth of Puerto Rico                            FURTHER INFORMATION CONTACT,
                                             requirements only on a reasoned                         (hereafter collectively referred to as                 individuals with disabilities can obtain
                                             determination that their benefits would                 States) will review the final                          this document and a copy of the
                                             justify their costs. In choosing among                  requirements. We assume that such                      application package in an accessible
                                             alternative regulatory approaches, we                   review will take, on average, one hour                 format. The Department will provide the
                                             selected the approach that would                        per State for a one-time cost of                       requestor with an accessible format that
                                             maximize net benefits. Based on an                      approximately $2,800.                                  may include Rich Text Format (RTF) or
                                             analysis of anticipated costs and                          We assume that, for each State, a                   text format (txt), a thumb drive, an MP3
                                             benefits, we believe that this final                    management analyst will spend                          file, braille, large print, audiotape, or
                                             regulatory action is consistent with the                approximately eight hours, on average,                 compact disc, or other accessible format.
                                             principles in Executive Order 13563.                    compiling the relevant data and                           Electronic Access to This Document:
                                                We also have determined that this                    preparing it for posting. Within this                  The official version of this document is
                                             final regulatory action does not unduly                 estimate, we assume a management                       the document published in the Federal
                                             interfere with State, local, and Tribal                 analyst would employ any necessary                     Register. You may access the official
                                             governments in the exercise of their                    data suppression rules, add NCES                       edition of the Federal Register and the
                                             governmental functions.                                 identifiers, and make any necessary                    Federal Regulations at www.govinfo.gov.
                                                                                                     formatting changes for posting of the                  At this site you can view this document,
                                               In accordance with the Executive                      data. We assume that posting the data                  as well as all other documents of this
                                             orders, the Department has assessed the                 online would take a network                            Department published in the Federal
                                             potential costs and benefits, both                      administrator ($59.09 per hour)                        Register, in text or Adobe Portable
                                             quantitative and qualitative, of this final             approximately 30 minutes. In total, we                 Document Format (PDF). To use PDF,
                                             regulatory action. The potential costs                  assume posting data will cost                          you must have Adobe Acrobat Reader,
                                             are those resulting from statutory                      approximately $23,900 per year.                        which is available free at the site.
                                             requirements and those we have                             Finally, we assume that                                You may also access documents of the
                                             determined as necessary for                             approximately 20 States would need to                  Department published in the Federal
                                             administering the Department’s                          update their data after initial posting.               Register by using the article search
                                             programs and activities. The benefit of                 We assume the updates will take a                      feature at: www.federalregister.gov.
                                             publicly posting the local maintenance                  management analyst approximately four                  Specifically, through the advanced
                                             of equity data is to facilitate public                  hours to complete and will require 30                  search feature at this site, you can limit
                                             accountability so that parents and                      minutes for a network administrator to                 your search to documents published by
                                             families will be able to access publicly                post. In total, we assume posting                      the Department.




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                                             available information on how LEAs are                   corrections will cost approximately
                                             maintaining fiscal and staffing equity.                 $4,900 per year.                                       Mark Washington,
                                             By requiring SEAs to publish                                                                                   Deputy Assistant Secretary for
                                             information and data on how LEAs are                    Regulatory Flexibility Act Certification               Administration, Office of Elementary and
                                             maintaining equity, the Department is                     The Secretary certifies that this final              Secondary Education.
                                             providing the public access to this                     regulatory action would not have a                     [FR Doc. 2022–12296 Filed 6–7–22; 8:45 am]
                                             information.                                            significant economic impact on a                       BILLING CODE 4000–01–P




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FR-2022-06-08_2022-12296.pdf
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