Fiscal Analysts Discuss Effect of Teacher Pension Shift on MOE, Make Recommendation Regarding Federally Funded Teachers
In the budget analysis, Maryland State Department of Education (MSDE) – Aid to Education, the Department of Legislative Services (DLS) discusses the teacher pension shift to county governments and maintenance of effort (MOE). Within this analysis, they also raise issues with eliminating the requirement that school systems pay the retirement costs of federally funded teachers and make a recommendation with respect to the three jurisdictions that did not meet MOE in FY 2013 and face a potential penalty. From the analysis:
…the BRFA of 2012 relieves school systems of a current requirement to reimburse the State for the pension costs of federally funded positions, totaling $37.1 million in fiscal 2013. These funds would then be available to redirect to other eligible uses. The impact of these funds and the increase in direct aid to local school boards is shown by county in Appendix 3. Combined, the local school boards will receive an additional $150.3 million in fiscal 2013.