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District warns ESSER denials and reimbursement timing could stall capital projects; vendors have unpaid invoices
Summary
District legal and finance staff said recent federal denials and changed appeals processes for ESSER reimbursements have created cash-flow stress on construction and equipment projects. Officials named Snyder and M Square among contractors with invoices pending and said a meeting with state attorneys and DPI is scheduled to discuss appeals.
District legal and finance counsel told the committee that changes at the U.S. Department of Education around how ESSER funds are reviewed and denied have created cash-flow and reimbursement problems that jeopardize ongoing capital projects.
Mister Schwartz, speaking about litigation and appeals, said the district and state are coordinating with attorneys after a preliminary injunction in a Southern District of New York case altered the appeals process and review standard for some projects. "The judge issued a preliminary injunction... they said that the department could invoke a process where they would give 14 days to appeal any cut off of funds," he…
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