Harlem School District officials told the board July 15 they are preparing for budget shortfalls after several revenue streams declined or were placed on hold, and they urged the board and community to begin planning targeted reductions rather than assume withheld funds will return.

The administration said the district has seen an approximate $6,000,000 decline in corporate personal property replacement tax (CPPRT) revenue over the last two years, rising health-care costs are putting pressure on operating budgets, and certain federal grant allocations normally used by the district are currently being withheld.

District leaders said the combination of lower CPPRT receipts and paused federal allocations requires immediate planning so the district can adjust staffing and programs without waiting for a last-minute “rescue” of funding. In presentation materials, administrators described Title II allocations (typically about $221,000), Title III allocations (typically about $43,000) and other federal funds as being held at the time of the meeting; the district said it had received an initial allocation for Title IV but that those funds were also being withheld.

Board members and administrators framed the conversation as a planning exercise rather than final decisions. Josh Rand, director of business and operations, reported recurring payments and the district’s current cash activity, saying the board could expect a tentative budget presentation in August and the audit presentation in December. He also provided the accounts-payable summary for the period: total payables of $6,605,236.24, voided checks of $36,983.25, two payroll batches totaling $7,361,951.54, and combined expenditures for the period of $13,967,187.78.

Why it matters: CPPRT and federal grant funds are material to the district’s operating budget. The district’s leadership said they will prioritize smaller, low-cost savings where feasible (for example, reviewing nonessential minutes, staffing requests and hourly allocations) to avoid cutting high-value programs that are costly to restore later.

During discussion, board members repeatedly emphasized the need for transparency and community engagement. The board scheduled further budget conversations in Committee of the Whole and plans a tentative budget presentation next month. Administrators said they will pursue grants, comb existing budgets for savings, and consider attrition and hiring freezes where necessary to reduce personnel costs without immediate layoffs.

Formal actions tied to the meeting’s financial agenda included the board’s approval of the bills and payables for the period and acceptance of the May 2025 treasurer’s report. The consent vote to approve the period’s payables and expenditures passed with all present board members voting in the affirmative.