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<div>TO: All District and ESD Special Education Directors</div>
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<div>The message below is being sent to you on behalf of:</div>
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<div>Petrea Hagen-Gilden</div>
<div>Interim Assistant Superintendent</div>
<div>Office of Student Learning & Partnerships</div>
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<div>Sue MacGlashan</div>
<div>Assistant Superintendent</div>
<div>Office of Finance Administration </div>
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<div>______________________________________________ </div>
<div>January 14, 2013</div>
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<div><b>RE: ESD Proposed Funding Change</b></div>
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<div>As you know, the Governor’s budget proposed a substantial change to funding for Education Service Districts (ESDs). Deputy Superintendent Rob Saxton has been charged with developing a plan for implementation of changes that would achieve the goals of
this budget.</div>
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<div>We are aware there is significant concern about changes that would affect special education funding and services. We share your concern regarding changes that would negatively affect a local district’s special education Maintenance of Effort (MOE) requirements.
The two ways that ESD resources impact local MOE are:</div>
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<li style="margin-bottom: 10pt; ">Provision of services directly to districts. These are typically referred to as “resolution” services, and the ESD establishes a dollar value for those services. Those expenditures are reported to Oregon Department of Education
(ODE) to be included in the MOE calculation for audit purposes.</li><li style="margin-bottom: 10pt; ">“Flow-through” or “transit dollars,” that are provided to districts. While these dollars typically are used as general fund dollars, and are not necessarily earmarked for special education, these funds are important resources
that are frequently used to contract back with the ESD for special education services.</li></ol>
<div>Deputy Superintendent Saxon fully understands the impact that changes to these funds would have on districts’ ability to meet MOE. We want you to know these issues are being taken very seriously and will be addressed in any proposal.</div>
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