Superintendent warns federal funds are on hold; district braces for state funding squeeze

Sheboygan Area School District Superintendent Dr. Conner told the school board that the district is monitoring several federal and state funding risks that could affect programs and staffing as the new school year approaches. Dr. Conner said $700,591 in federal program funds were being held, including Title II-A ($343,803), Title III-A ($202,030) and a portion of Title IV-A ($154,758). Dr. Conner said the Title IV funds include money that supports 21st Century Community Learning Center-style programs and other after-school services that he called essential: "Those funds should be sacred." He said those funds were released and re‑held at different times and that a state certification or assurance could be required for release. The superintendent described uncertainty over whether Congress would rescind or reconfigure appropriations and said that, at times, federal money could be converted to a block grant given to the state. "They'd stick it in the block grant," he said, adding that shift could change which providers are eligible for funds. Nut graf: The district faces immediate operational choices because some federal program dollars remain in limbo while the state budget provides only modest increases in the coming years; the board and administration said they are balancing contractual obligations, planned commitments and contingency planning while urging state and federal officials to stabilize funding. Dr. Conner reviewed specific budget items the board should expect to see in upcoming presentations. He summarized state-level changes described in the Wisconsin budget and related analyses from the Wisconsin Policy Forum: a $3.25 increase referenced for fiscal years 2026 and 2027 in the state document he reviewed, special-education reimbursement targets discussed at 42% in the near term and a possible increase toward 45% later, and modest per-student open-enrollment adjustments his office estimates will cost the district roughly $1,140 per student who leaves the district. He said voucher funding increases are also being phased in and that voucher programs receive larger per‑pupil increases under the current plan. Dr. Conner cautioned that the state numbers remain uncertain and that payment timing or certification requirements could change: he said that, historically, some proposed percentages for special education have not been fully funded. He recommended that the board treat committed but nonessential spending cautiously and noted some district costs are fixed by contract or were committed June 1. Board members asked clarifying questions about how a federal block grant would affect the district's access to funds and whether committed payroll and salaries would still be funded; Dr. Conner answered that legally required salary commitments would be honored but discretionary spending and new one‑time purchases were being reviewed. Ending: Dr. Conner said business office staff will present detailed budget impacts to the board at a future meeting and urged trustees and community members to advocate to state and federal legislators for release of funds that support after‑school care and teacher professional development.