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Missoula trustees authorize up to $1 million from interlocal fund as federal aid remains on hold
Summary
Facing federal funding holds, the Missoula County Public Schools board authorized using up to $1,000,000 from its interlocal reserve to cover programs funded by federal grants until reimbursements arrive, and voted unanimously to approve the measure.
The Missoula County Public Schools Board of Trustees voted unanimously on July 15 to authorize use of interlocal funds, not to exceed $1,000,000, to cover district payroll and program costs if delayed federal grant funding does not arrive.
Superintendent Micah Hill told trustees that federal ‘‘hold’’ guidance affects multiple federal programs the district uses to operate services, including class-size reduction, English learner support, instructional coaching, after-school programming and summer school. He said Title II funds that back five full‑time equivalent (FTE) positions total about $235,000 annually and that Title IV Part B supports after‑school programming that the district pays the city’s parks and recreation and other partners about $230,000 to run.
Hill framed the board decision as a contingency: ‘‘The recommendation is that I’m asking our trustees to set aside funds in the interlocal agreement for the 25‑26 school year in the event that these funds are not distributed,’’ he said. He described the interlocal account as a rainy‑day reserve and said the district would reimburse it if federal funds are later released.
Board members pressed for details about the proposed amount, how reimbursements would work and the source of the reserve. Hill said the district’s carryover plus delayed funds put the total exposure ‘‘in excess of a million’’ and that the interlocal account holds roughly $3 million with some earmarks already in place. Trustees discussed whether to specify an exact dollar amount; the motion on the floor limited the authorization to not exceed $1,000,000 and passed unanimously.
Trustees and staff repeatedly emphasized uncertainty around the timeline for federal action. Hill said state and national advocacy is underway and that the Office of Public Instruction had issued guidance recommending districts not assume aid will arrive. He added that districts may have to ‘‘rob Peter to pay Paul’’ if the funds remain withheld and that the interlocal authorization should be a last resort.
The board did not adopt specific program cuts at the meeting; Hill said the authorization would allow payroll and contracted services to continue while the district monitors developments and seeks reimbursement if the federal funds are restored.
Looking forward, Hill and trustees said they will continue advocacy with state and federal officials and revisit the budget if and when federal funds are resolved.
