Excess costs are costs greater than the average expenditure in a local education agency (LEA) for an elementary or secondary student. These costs are calculated each year based on expenditures from the prior school year. If your organization receives a federal grant awarded under the Individuals with Disabilities Education Act of 2004, Part B (IDEA-B), those funds must be used to pay the excess cost of providing special education and related services to students with disabilities.
Except under conditions described in 34 CFR §300.202 (b)(1)(ii), the excess cost requirement prevents the use of IDEA-B funds to pay for the entire cost of providing services to students with disabilities. Your organization meets the excess cost requirement if at least a minimum average amount is spent for the education of students with disabilities before IDEA-B funds are spent. For practical purposes, IDEA-B funds may be spent simultaneously with state, local, and other federal funds. However, by the end of the school year, your organization must have spent the minimum average amount per student with funds other than IDEA-B.
For more information about the Excess costs guidelines, you may refer to the links provided in the Federal Guidance section below.
The following sections below provide guidance to assist LEAs concerning Excess Cost.
IDEA-B LEA MOE Handbook
Information on IDEA-B fiscal requirements, including excess costs, is available in the IDEA-B LEA Maintenance of Effort (MOE) Guidance Handbook (PDF 755 KB).
Excess Costs Guidance Handbook
Information on Excess Costs requirements is available in the IDEA, Part B Excess Costs Guidance Handbook (PDF 148 KB).
Excess Costs Calculation Tool
Each year you must complete the excess cost calculation based on expenditures from the prior school year. Complete the calculation as soon as possible after you submit the final expenditure report. An Excel workbook (Excess Cost Calculator Tool) is available to help you calculate excess costs.
Use the links listed below to view the federal regulations concerning excess costs.
Additional guidance will be posted on this page as it becomes available. If you would like to be notified when updates occur, please subscribe to the Grants Administration and Federal Program Compliance listserv.
For more information, contact:
Division of Federal Fiscal Compliance and Reporting