<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".04" citation="COMAR 13A.02.05.04" title_num="13A" subtitle_num="02" chapter_num="05" heading="Waiver of Maintenance of Effort Requirement.">
  <paragraph num="A.">
    <text>Waiver Requests.</text>
    <paragraph num="(1)">
      <text>In order to qualify for a maintenance of effort waiver, a county shall make a request for a waiver in writing to the State Board of Education by the earlier of April 20 or the 7th day following the end of the legislative session of the fiscal year prior to the waiver year. The county shall send to the local board of education a copy of the waiver request.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>There are three types of waiver requests:</text>
      <paragraph num="(a)">
        <text>Impeded Ability Waiver;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Agreed on Waiver; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Rebasing Waiver.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>The State Board shall inform the county whether the waiver is approved or denied in whole or in part 30 days after receipt of an application or May 20 of the fiscal year prior to the waiver year, whichever is earlier.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Public Hearing.</text>
    <paragraph num="(1)">
      <text>Upon receipt of the waiver request, the State Superintendent of Schools shall provide a preliminary assessment of the waiver request to the State Board.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Upon receipt of the waiver request, the State Board shall schedule a public hearing.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Notice of the public hearing shall include the time allotment for oral presentation.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>The State Board may identify and call upon expert witnesses.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Standards for Granting Waivers.</text>
    <paragraph num="(1)">
      <text>For an Impeded Ability Waiver for a fiscal year, the county shall address whether the waiver request is contested and submit the amount of the waiver request and a full explanation of how each of the following factors impact and support the request for this waiver:</text>
      <paragraph num="(a)">
        <text>External environmental factors such as a loss of a major employer or industry affecting a county or a broad economic downturn affecting more than one county;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>A county’s tax base;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Rate of inflation relative to growth of the student population in the county;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Maintenance of effort requirement relative to the county’s statutory ability to raise revenues;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>The county’s history of exceeding the required maintenance of effort amount;</text>
      </paragraph>
      <paragraph num="(f)">
        <text>An agreement between a county and a county board that a waiver should be granted;</text>
      </paragraph>
      <paragraph num="(g)">
        <text>Significant reductions in State aid to the county and municipalities of the county for the fiscal year for which a waiver is requested;</text>
      </paragraph>
      <paragraph num="(h)">
        <text>The number of waivers the county has received in the past 5 years;</text>
      </paragraph>
      <paragraph num="(i)">
        <text>The history of compensation adjustments for employees of the county board and county government; and</text>
      </paragraph>
      <paragraph num="(j)">
        <text>Other factors, upon request by the State Board.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>For an Agreed on Waiver based on an agreed-on reduction in recurring costs, the county must submit:</text>
      <paragraph num="(a)">
        <text>The amount of the agreed-on reduction in recurring costs by line item in the local board’s budget;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The amount of the waiver request;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>A comparison of the requested appropriation level to the amount required by Education Article, §5-202(d)(1)(i), Annotated Code of Maryland;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>The document that sets forth the mutual agreement between the county and the local board; and</text>
      </paragraph>
      <paragraph num="(e)">
        <text>If the reduction in recurring costs includes reductions in personnel or personnel costs, the document that reflects the agreement of the exclusive employee representative.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>For a Rebasing Waiver to rebase maintenance of effort permanently, the county shall:</text>
      <paragraph num="(a)">
        <text>Have obtained a waiver for a fiscal year under §C(1) of this regulation;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Submit the amount requested to be permanently rebased;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Demonstrate that the county education appropriation under Education Article, §5-202(d)(1)(ii), Annotated Code of Maryland, for the waiver year exceeds 100 percent of the Statewide 5-year moving average of education effort times a county’s local wealth; and</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Submit a full explanation of whether and how:</text>
        <paragraph num="(i)">
          <text>The county is at its maximum taxing authority under the law;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>The county’s education appropriation is commensurate with the county’s wealth;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>The county’s history of exceeding the required maintenance of effort has made meeting the maintenance of effort requirement in future years unsustainable;</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>The county has or has not received a rebasing waiver in the past 5 years; and</text>
        </paragraph>
        <paragraph num="(v)">
          <text>The factors set forth in §C(1)(a)—(i) of this regulation affect the county’s ongoing ability to meet the maintenance of effort requirement.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </paragraph>
</regulation>