Sequestration has resulted in a reduction of approximately five percent in the federal funds received by Minnesota to support services for preschool children with disabilities. This reduction is effective beginning with FFY 2013 which starts July 1, 2013. Because of this reduction, the base amount for Part B Section 619 is below the 1997 level and there will be no allocation based on enrollment and poverty.
To support local efforts to absorb this reduction, a decision has been made to eliminate the Discretionary Preschool Personnel Development Grants (Finance Code 437) and roll those amounts into Part B Section 619 (Finance Code 420) to make up for the shortage in the base funding amount. This decision is intended to maximize flexibility in how districts are able to allocate federal funding. Districts may use Finance 420 for professional development activities that were planned with Finance 437 funds.
In prior years, Finance Code 437 was dedicated to professional development initiatives supporting preschool special education staff. Funds remaining in Finance Code 437 must be obligated by June 30, 2013.