Section 7-34-C-300.230 - MDE flexibility(a)Adjustment to State fiscal effort in certain fiscal years. For any fiscal year for which the allotment received by Mississippi under 34 CFR §300.703 exceeds the amount the State received for the previous fiscal year and if the State in school year 2003-2004 or any subsequent school year pays or reimburses all LEAs within the State from State revenue 100 percent of the non-federal share of the costs of special education and related services, the MDE, notwithstanding §§300.162 through 300.163 (related to State-level nonsupplanting and maintenance of effort), and §300.175 (related to direct services by the MDE) may reduce the level of expenditures from State sources for the education of children with disabilities by not more than fifty (50) percent of the amount of such excess.(b)Prohibition. Notwithstanding paragraph (a) above, if the Secretary determines that the MDE is unable to establish, maintain, or oversee programs of FAPE that meet the requirements of this part, or that Mississippi needs assistance, intervention, or substantial intervention under 34 CFR §300.603, the Secretary prohibits the MDE from exercising the authority in paragraph (a) above.(c)Education activities. If the MDE exercises the authority under paragraph (a) above, the agency must use funds from State sources, in an amount equal to the amount of the reduction under paragraph (a) above, to support activities authorized under the ESEA, or to support need-based student or teacher higher education programs.(d)Report. For each fiscal year for which the MDE exercises the authority under paragraph (a) above, the MDE must report to the Secretary (1) The amount of expenditures reduced pursuant to that paragraph; and(2) The activities that were funded pursuant to paragraph (c) above.(e)Limitation.(1) Notwithstanding paragraph (a) above, the MDE may not reduce the level of expenditures described in paragraph (a) above if any LEA in the State would, as a result of such reduction, receive less than 100 percent of the amount necessary to ensure that all children with disabilities served by the LEA receive FAPE from combination of federal funds received under Part B of IDEA and State funds received from the MDE.(2) If the MDE exercises the authority under paragraph (a) above, LEAs in the State may not reduce local effort under §300.205 by more than the reduction in the State funds they receive.7 Miss. Code. R. 34-C-300.230