Robeson County board moves $2.2 million from capital reserve after federal revocation of ESSER III extension

The Public Schools of Robeson County board on April XX voted to move roughly $2.2 million from its capital outlay reserve to pay outstanding contractor invoices after the U.S. Department of Education revoked previously approved extensions for ESSER III grant liquidation.

District counsel and staff told the board the March 28 U.S. Department of Education letter ending the discretionary liquidation extension left projects that had been approved and contracted without the promised federal reimbursement. "There is so much wrong with this letter legally, morally, ethically, that it's mind boggling," counsel Richard Swartz said during the meeting. Swartz described the March 28 notice as abrupt and said the state and several school systems are seeking reconsideration and gathering information for project‑by‑project appeals.

Why it matters: Robeson County officials said the district has about $14.6 million in ESSER III projects that were approved under an earlier extension and remain obligated or under contract; the board was told it currently has about $2.2 million in invoices already paid or due that it must cover short term. "We followed every letter of the law that DPI sent out. We followed all the procedures. We met all the deadlines," finance presenter Erica Setser said, describing delays caused by long equipment lead times and asbestos abatement that pushed work into summer windows when students were not in buildings.

Project details and immediate impact: District staff and lawyers said the largest single set of obligations is the HVAC renovation at Lumberton Senior High, a multi‑year project that officials said will total roughly $11 million for that campus. Because many repairs could not be performed while students were present, district contractors worked nights, holidays and summers; staff said supply chain delays and hazardous‑materials abatement extended timelines.

To avoid unpaid bills and potential legal exposure to vendors, the board approved a budget amendment to transfer $2,213,982.21 (reported in meeting materials; discussed by staff as "about $2.2 million") from the capital outlay reserve to pay M Square, a contractor with outstanding invoices. Board members were told $1,142,003.81 had already been paid and the district still faces invoices of approximately $1,071,600 to complete the two building projects referenced at the meeting.

Next steps and appeals: Staff reported the North Carolina Department of Public Instruction (DPI) is coordinating a state‑level response and gathering records for the U.S. Department of Education to consider project‑by‑project extensions. The state and several other states have sent letters asking the U.S. Department of Education to reconsider. Swartz said administrative remedies will be exhausted first; litigation remains a possibility if appeals fail.

Board action: The board approved the capital outlay transfer in a voice/show‑of‑hands vote and separately authorized the superintendent and the board attorney to contact the county congressional delegation and federal officials asking for assistance and advocating for restoration of the previously approved liquidation period.

What the board did not decide tonight: Staff emphasized that the district has not shifted day‑to‑day operating funds; the capital reserve transfer was described as a short‑term step to pay contractor invoices. Officials said broader choices about projects and potential legal actions will depend on the results of the state’s appeal and any federal responses.

Votes at a glance (items taken during the same meeting): the board also approved an amended summer/school‑year readministration plan for certain EOG/EOC tests (K–8 readministration in the last 10 school days), approved the district AIG plan, authorized several routine budget amendments and reports, approved a sole‑source purchase of literacy decodables, approved PRC‑071 teacher supplements, approved the naming of the Saint Paul’s High School track for David Shaw, approved an MOU with Robeson Community College on CCP coursework, and other routine personnel and finance items (see action log).