During the Charlottesville City School Board Budget Work Session on January 30, 2025, officials addressed concerns regarding the potential loss of federal funding, which constitutes approximately 6.8% of the school budget. The discussion highlighted the importance of understanding the implications of federal funding on the district's financial stability.

Board members expressed worries about the possibility of federal funds disappearing, particularly in light of past government shutdowns. However, they clarified that many of the federal funds currently received are already allocated and secure. Programs such as Title 1 and Title 6B are formula-driven and have funding that has already passed through to the state, ensuring their availability for the upcoming year.

Despite the reassurances, the board acknowledged the need for contingency planning. Should federal funding be cut, the district would need to seek an additional $6.7 million from the city to cover the shortfall. Currently, the school district's surplus fund balance stands at approximately $6 million, providing a financial cushion in case of emergencies.

The meeting underscored the importance of proactive financial management and the potential need for collaboration with city officials to ensure the continued support of educational programs in the face of uncertain federal funding. As the budget process continues, the school board remains focused on securing the necessary resources to maintain educational quality for students in Charlottesville.