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District finance director flags federal grant uncertainty; special education funding and payroll retro pay noted
Summary
Finance Director Bill Denasi told the Shakopee board the district has collected 56.47% of its revised general fund budget as of Feb. 28 and highlighted exposure if federal grant funding shifts; he and board members discussed drawing on unassigned fund balance as a contingency.
Shakopee Public School District finance director Bill Denasi told the school board Monday that the district has collected about 56.47% of its revised general fund budget as of Feb. 28 and outlined how federal grant uncertainty could affect operations.
“Starting first on the revenue side of the general fund as of the February, we have collected 56.47% of our revised budget total of 126,290,000.00,” Denasi said as he presented the monthly budget update. He also called attention to interest and local fees that have exceeded budget assumptions this fiscal year.
Denasi told board members federal grants account for roughly $2.3–$2.4 million of general fund revenue and described how the district draws down federal funds through the Department of Education system after expenditures occur. “So what we’re doing in the current year is making sure, like we always do, that we’re keeping up with that draw cycle,” he said.
Board members asked how the district would respond if federal special education payments or other federal grants were reduced. Denasi and other administrators said the district could consider using unassigned fund balance as a one‑time backfill for a shortfall, but said that approach had not been finalized.
Denasi also explained a year‑over‑year variance in salary expenditures. “Last year was the first year of the SEA contract, and we settled that or the board settled that contract…so that’s the main driver for the 2% variance there,” he said, referring to retroactive pay recorded this year.
Board members asked where special‑education expenditures appear in the budget. Denasi said they are largely reflected under purchase services and that the federal special‑education aid does not cover the bulk of special‑education costs — a long‑standing funding gap the district accounts for in the general fund.
Why it matters: Federal grants and special‑education funding are significant categorical revenue sources; any change in federal support would require budget adjustments, use of reserves, or programmatic changes. The board asked staff to continue monitoring federal developments and to bring contingency options back to committee as needed.
What’s next: Finance staff will continue monthly reporting to the board and will monitor federal draw schedules, potential grant changes and the timing of retro pay. The finance and facilities committee discussed using the unassigned fund balance as a contingency and will continue that conversation.
