# Presentation: 304140

## LEAP And SLEAP Update

**LEAP And SLEAP Update**

- National Association of State Student Grant and Aid Programs (NASSGAP) Fall Conference

- Minneapolis, Minnesota  October, 2002

## Agenda

- Introduction
- Budget
- LEAP and SLEAP Program Info
- SLEAP Requirements:  What do they mean and how do they work?
- Special Rule – *SLEAP Base Requirement *
*New Money to Participate beyond 1999-2000*
- Maintenance-of-Effort (MOE) Requirement
- Questions and Answers

## Budget Figures

**FY 2003**
**(President’s Budget Request)****	****$ 0**
- 	 Past Years Allocations
- FY 2002				$67 Million*
- FY 2001				$55 Million*
- FY 2000				$40 Million*^
**For any fiscal year for which the amount appropriated under the LEAP Program exceeds $30,000,000 the excess shall be available to carry out the SLEAP Program.*
*^First year in which SLEAP dollars were awarded.*

## LEAP and  SLEAP Operational Calendar (Tentative)

**November 22, 2002**	Due Date for 2001-2002 LEAP/SLEAP *(Extended)**	*	Performance Reports
- Nov/Dec 2002		ED Reviews and Evaluates LEAP/SLEAP 				Performance Reports
- 			Focus Group with States – New On-line Form 			Development
- March 2003		Deadline Dates Notice Published
- May 2003		2003-2004 LEAP and SLEAP 					Applications are Due *(Pending Appropriation)*
- May 2003		2002-2003 Reallotments (if any) to States
- June 2003		2003-2004 LEAP and SLEAP Awards to 				States *(Pending Appropriation)*
- October 2003		Due Date for 2002-2003 LEAP/SLEAP 				Performance Reports

## Program Information

- Major LEAP Requirements
- Base Year Maintenance-of-Effort (MOE) Requirement
- Matching (Dollar-to-dollar)
- 3-Year Average MOE Requirement
- Major SLEAP Requirements
- Matching (2 State Dollars to 1 Federal)
- Special Rule for non-Federal matching
-  Maintenance-of-Effort (MOE) Requirement

## SLEAP “Special Rule”SLEAP Base Requirement - New Money?

- In order for a state to participate in SLEAP, its matching dollars under SLEAP must represent dollars in excess of the total dollars it spent for need-based grants, scholarships, and work-study assistance in the 1999-2000 award year.  These monies over the base would be considered “new money.”
- “415E(f) of the HEA states:  SPECIAL RULE.  Notwithstanding subsection (d), for purposes of determining a State’s share of the cost of the authorized activities described in subsection (c), the State shall consider only those expenditures from non-Federal sources that exceed its total expenditures for need-based grants, scholarships, and work-study assistance for fiscal year 1999 (including any such assistance provided under this subpart).”

## 1) More LEAP Under your State’s SLEAP Program        Most States are doing more under their state’s grant program with SLEAP.  So, for  most state’s, the SLEAP MOE dollars would consist of its 2-for-one SLEAP match dollars + any # 3 dollars the state may have.

2) More LEAP Community Service Work-Study Under your State’s SLEAP Program

3) Merit and Academic Achievement, or Critical Careers Scholarships (Note: not necessarily under your state’s SLEAP Program) – Any programs at the state level in your state must be included (not just your agency).

- 1) More LEAP Under your State’s SLEAP Program        *Most States are doing more under their state’s grant program with SLEAP.  So, for  most state’s, the SLEAP MOE dollars would consist of its 2-for-one SLEAP match dollars + any # 3 dollars the state may have.*
- 2) More LEAP Community Service Work-Study Under your State’s SLEAP Program
- 3) Merit and Academic Achievement, or Critical Careers Scholarships *(Note: not necessarily under your state’s SLEAP Program) – Any programs at the state level in your state must be included (not just your agency).*

- SLEAP MOEWhat Are the Activities?

## SLEAP MOE

- SLEAP MOE Requirement
- Under the SLEAP Program, the State must assure that its expenditures for the authorized activities, in the aggregate or per student, in the preceding award year were not less than its expenditures for  those activities, in the aggregate or per student, in the second preceding award year.

## State Example SituationsLEAP and SLEAP Data Sheet

## Example State A – No IssuesState A Receives Increases in its State Appropriations for its State Grant Aid Programs Each Year

- 2000-2001
- Grant A *(state appropriated)**	**$ *10,000,000
- Grant B *(non-appropriated)**	**$   *4,970,000
- Other Non-Need Based 	*$ *       30,000
- LEAP Base Year		*$   *2,000,000
- LEAP MOE		*$*   7,100,000
- SLEAP MOE		*$   *              0
- LEAP Award		*$*        77,000
- SLEAP Award		*$        *28,000

_*LEAP Base Requirement*_*:  Total state aid ($15,000,000) is greater than the LEAP award ($77,000) + the state’s base year amount ($ 2,000,000).*
_*LEAP MOE Requirement*_*:  Total state grant appropriations ($10,000,000) is Greater than needed LEAP MOE ($ 7,100,000).*
_*SLEAP MOE and Match*_*:  MOE is $0 this first year.  There are enough matching dollars in need-based monies to match the award 2-for-1 in the amount of  $ 56,000.*

## Example State A ContinuedState A Receives Increases in its State Appropriations for its State Grant Aid Programs Each Year

- 2001-2002
- Grant A *(state appropriated)**	**$ *10,965,000
- Grant B *(non-appropriated)**	**$   *5,000,000
- Other Non-Need Based 	*$ *       35,000
- LEAP Base Year		*$   *2,000,000
- LEAP MOE		*$*   7,200,000
*SLEAP Base Year**	**	**$**  13,975000*
- SLEAP MOE		*$*        56,000
- LEAP Award		*$*        76,000
- SLEAP Award		*$        *78,000

_*LEAP Base Requirement*_*:  Total state aid ($16,000,000) is greater than the LEAP award ($76,000) + plus the state’s base year amount ($2,000,000).*
_*LEAP MOE Requirement*_*:  Total state grant appropriations ($10,965,000) is Greater than needed LEAP MOE ($ 7,200,000).*
_*SLEAP Base Requirement*_*:  Total need-based aid ($16,000,000) – minus the state’s SLEAP Base year amount ($13,975,000) leaves $2,025,000 available in “new money” to match under SLEAP.*
_*SLEAP MOE and Match*_*:  MOE is $56,000.  There are enough matching dollars in “new” need-based monies to match the award 2-for-1 in the amount of  $ 156,000.*

## Example State B – SLEAP Out/Back InState B participated in SLEAP during 2000-2001 but did not satisfy the SLEAP Special “new money” rule in 2001-2002 to be able to participate.  The state receives enough state dollars to satisfy the requirement in award year 2002-2003 and wishes to participate.  How is the the SLEAP MOE handled for this state being that they weren’t in the program for a year? 

- 2001-2002
- Grant A *(state appropriated)**	**$ *17,000,000
- Other Non-Need Based 	*$ *28,000,000
- LEAP Base Year		*$ *                0
- LEAP MOE		*$* 15,333,333
*SLEAP Base Year**	**	**$ 17, 000,000*
- SLEAP MOE		*$      *112,000
- LEAP Award		*$*      325,000
- SLEAP Award		*$                *0

_*LEAP Base Requirement*_*:  Not an issue.*
_*LEAP MOE Requirement*_*:  Total state grant appropriations ($17,000,000) is Greater than needed LEAP MOE ($ 15,333,333).*
_*SLEAP Base Requirement*_*:  Total need-based aid ($17,000,000) – minus the state’s SLEAP Base year amount ($17,000,000) does not leave any“new money” to match..*
_*SLEAP MOE and Match*_*:  There is $1.6 million beyond this state’s LEAP MOE requirement to match under SLEAP, but the dollars are not considered “new money” and cannot participate.*

## Example State B ContinuedState B participated in SLEAP during 2000-2001 but did not satisfy the SLEAP Special “new money” rule in 2001-2002 to be able to participate.  The state receives enough state dollars to satisfy the requirement in award year 2002-2003 and wishes to participate.  How is the the SLEAP MOE handled for this state being that they weren’t in the program for a year? 

- To determine the MOE for this state allowing participation in the the SLEAP Program during the 2002-2003 award year:
- For the year in which the state did not participate in SLEAP, the state must be able to show it had expenditures that qualify under the three authorized activities. This amount reported for the 2001-2002 award year must equal or exceed the amount it spent during the 2000-2001 award year.

## 2002-2003
Grant A (state appropriated)	$ 26,000,000
Other Non-Need Based 	$ 30,000,000
LEAP Base Year		$                 0
LEAP MOE		$ 16,133,319
SLEAP Base Year		$ 17, 000,000
SLEAP MOE		$      113,820
Tentative LEAP Award	$      325,000
Tentative SLEAP Award	$      652,000

- Grant A *(state appropriated)**	**$ *26,000,000
- Other Non-Need Based 	*$ *30,000,000
- LEAP Base Year		*$                 *0
- LEAP MOE		*$ *16,133,319
*SLEAP Base Year**	**	**$** **17, 000,000*
- SLEAP MOE		*$      *113,820
- Tentative LEAP Award	*$*      325,000
- Tentative SLEAP Award	*$      *652,000

_*LEAP Base Requirement*_*:  Not an issue.*
_*LEAP MOE Requirement*_*:  Total state grant appropriations ($26,000,000) is Greater than the needed LEAP MOE ($ 15,500,000).*
_*SLEAP Base Requirement*_*:  Total need-based aid ($26,000,000) – minus the state’s SLEAP Base year amount ($17,000,000) leaves $9,000,000 available in “new money” to match under SLEAP.*
_*SLEAP MOE and Match*_*: Even though the State did not participate in award year 2001-2002, it can show that it could have spent at least $112,000 of its possible $1,666,667 in match dollars had it participated in 2001-2002.  It is our policy that this satisfies the MOE requirement*

- Example State B *Continued**State B participated in SLEAP during 2000-2001 but did not satisfy the SLEAP Special “new money” rule in 2001-2002 to be able to participate.  The state receives enough state dollars to satisfy the requirement in award year 2002-2003 and wishes to participate.  How is the the SLEAP MOE handled for this state, being that they weren’t in the program for a year? *

## 2002-2003
Grant A (state appropriated)	$ 51,900,000
Other Non-Need Based 	$      100,000
LEAP Base Year		$   4,000,000
LEAP MOE		$ 53,266,667
SLEAP Base Year		$ 55,400,000
SLEAP MOE		$     240,000

- Grant A *(state appropriated)**	**$ *51,900,000
- Other Non-Need Based 	*$      *100,000
- LEAP Base Year		*$   *4,000,000
- LEAP MOE		*$ *53,266,667
*SLEAP Base Year**	**	**$** 55,400,000*
- SLEAP MOE		*$     *240,000

_*LEAP Base Requirement*_*:  Not an issue.*
_*LEAP MOE Requirement*_*:  Total state grant appropriations ($51,900,000) is lesser than the needed LEAP MOE ($ 53,266,667).  The average award per FTE needed to be met is $1,970.  If the state can show that it will meet this average for year, this will satisfy the MOE requirement.*
_*SLEAP Base Requirement*_*:  No “new money” available. The SLEAP base year amount exceeds the total in need-based dollars available..*
_*SLEAP MOE and Match*_*: No matching dollars available.*

- Example State C – State Cuts In Funding/LEAP in trouble*State C participated in SLEAP during 2000-2001 but did not satisfy the SLEAP Special “new money” rule in 2001-2002 to be able to participate.  This state continues to receive cut backs and now its LEAP program is in jeopardy because it will not have enough in state appropriated dollars to match its required LEAP MOE amount.  We look at average annual expenditures per full-time equivalent students within the state. *

## Example State C – State Cuts In Funding/LEAP in troubleState C participated in SLEAP during 2000-2001 but did not satisfy the SLEAP Special “new money” rule in 2001-2002 to be able to participate.  This state continues to receive cut backs and now its LEAP program is in jeopardy because it will not have enough in state appropriated dollars to match its required LEAP MOE amount.  We look at average annual expenditures per full-time equivalent students within the state. 

- To determine the average annual expenditures per FTE to satisfy the LEAP MOE requirement:
- By taking the LEAP state expenditures for the proceeding three award years and dividing those amounts by the respective FTE enrollment for those same award years, an average expenditure per FTE is derived.  Averaging these three figures results in one, three-year averaged figure.  This expenditure level per FTE is the state’s second-option in satisfying the MOE requirement.

## Example State D – Out of LEAP (Current Policy)If State D wishes to resume its participation in the LEAP Program, it may do so under the following two options 

- Option 1: _Return to the LEAP Program as a Continuing Participant_  As a continuing  participant, the following conditions apply:
- Base Year Unchanged.
- Must submit performance reports for the year(s) in which the state was out of the program or for the three proceeding award years.  By doing so, the state certifies that state-appropriated funds expended for need-based grants and work-study jobs that comply with the LEAP Program requirements.  If no State-appropriated funds were expended for need-based awards for an award year, a zeros is reported for that year.  The information is used to determine the state’s 3-year average MOE.

- Option 2: _Return to the LEAP Program as a New Participant _ As a new participant, the following conditions apply:
- New base year is  established.  This new base is the amount spent on need and non-need-based grants and work-study jobs for students during the 1999-2000 award year.  Consequently for any given award year, the total state expenditures for all grants and work-study jobs must equal or exceed the sum of the base-year amount plus the state’s dollar-for-dollar match required for the LEAP Program.
- No 3-year average MOE for three years. A new 3-year MOE will be established after participation in the LEAP Program for three award years.

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## LEAP and SLEAP Programs Contact

- Please visit our Financial Partners portal at:
- www.fp.ed.gov
- Soon to See More LEAP Info On Web Site

**Greg Gerrans  greg.gerrans@ed.gov**
**Direct/VM:  202-377-3304**
**Fax:  202-275-0913**

**Partners@ed.gov**

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