District reports under-budget spending and delayed federal reimbursements; Title 2, 3 and 4 funds still pending

District finance staff told the board that, as of June 30, expenditures were under budget and the district expects to carry forward fund balance, but several federal reimbursements remain outstanding and affect the ending fund balance.

Why it matters: Unreimbursed federal grants reduce available fund balance and could force the district to scale back or shift non-salary programming if the federal or state reimbursements do not arrive.

The presenter said about $34 million in prior claims for federal Title programs remain to be reimbursed; Title 1 funding for the next fiscal year is slightly lower (about $100,000 less than FY25), Title 2 (professional development) totals about $446,000, Title 3 (English-language learners) is about $40,000 and Title 4 (student support and academic enrichment) is about $242,000. The presenter noted that salaries are not paid from some of those awards and that loss of those funds would mainly affect programmatic supports such as training, conferences and enrichment activities.

The finance presenter said the district is working with auditors on two years of financial audits and hoped for a report by next month but cautioned there are remaining documentation items. Board members asked about timelines; the presenter said state and federal timing is uncertain and that the state superintendent has been sending updates but there is no firm release date for some federal funds.

The board also approved a motion to designate financial institutions for the 2025-26 school year: American State Bank (operating checking and investments), First State Bank (activity checking and investments), and First National Bank (investments). That motion passed by roll call vote.

No immediate program eliminations were ordered; the administration said it will review program priorities and may propose general-fund coverage for critical activities if federal reimbursements do not materialize.