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Macomb School District told federal ARP-ESSER reimbursements are paused; projects face funding uncertainty
Summary
State guidance says federal ARP-ESSER reimbursements are paused after a federal decision; district staff reported $23.57 million originally allocated, $13.96 million spent and said roughly $9.61 million remains that may not be available. Board asked administration to return with a written plan and options including loans or 16th-section funds.
The Macomb School District learned at its April 7 work session that federal reimbursements under ARP-ESSER (ESSER 3) have been paused, and the state is appealing the federal decision.
District finance staff told the board the district’s ARP-ESSER allocation was $23,569,179. According to the packet presented at the meeting, the district has used $13,959,624 and shows a remaining balance of $9,609,555; staff said a pending reimbursement request of roughly $1,670,868 was outstanding and may not be reimbursed while the pause remains in effect.
Why it matters: district leaders said those federal reimbursements were intended to cover recent capital work, including HVAC and network switch projects. If reimbursements are not restored, the district will be out any already-paid amounts and will need to identify replacement funding or pause work.
What staff reported and recommended Miss Hall, a finance staff member who presented the funding summary, told the board the district has already paid roughly $2.8 million on projects covered by ESSER and had a pending request of about $1.6 million. She recommended holding off on additional ESSER-dependent payments until the district identifies replacement funding or receives final guidance from the state education agency (MDE).
In discussion, board members urged administration to present a written plan for the regular board meeting. Suggestions discussed included: seeking a bank loan, pursuing a loan tied to 16th-section funds, reviewing contracts for clauses that make payment contingent on receipt of funds, and asking legal counsel about options to delay payments without breaching contracts.
Board reaction and next steps Several board members said they wanted concrete numbers and legal analysis before deciding whether to halt active projects. One board member said the item should have been prioritized on the agenda with attachments so the board could review proposals before the work session.
Administration said it would gather contract language, interest-rate estimates for potential borrowing, and options for using local revenue (including the 16th-section mechanism) and bring a written plan back to the board for the regular meeting. Staff also said the state agency was “working expeditiously” to recover the federal money and was offering guidance.
What the district packet shows The district packet shared at the meeting listed the ARP-ESSER allocation and the amounts cited above but did not include a full plan for how to replace federal funding if the pause continues. Board members repeatedly asked for a written recommendation from administration and the district attorney before they would consider stopping or continuing active contracts.
Ending Administration will return with a written plan and contract analysis for the next board meeting; the state education agency’s appeals process remains active, and the final availability of ARP-ESSER reimbursements is unresolved.
