Keystone Central School District Superintendent told the board on July 10 that roughly $300,000 in federal Title funds (Title I, II, III and IV) the district had budgeted for the coming year were being withheld by the U.S. Office of Management and Budget pending a national review.

The superintendent said the funds pay for professional development, supports for English learners and enrichment programs and that the district does not yet know whether or when the money will be released. “We were allocated in the ballpark of $300,000,” the superintendent said. “We don't know if we're ever going to get these, and if we do, when.”

Board members asked whether the withheld funds are a district-specific issue; the superintendent said the hold is nationwide and originates with OMB after a short notice from the U.S. Department of Education that the funds required further review.

The superintendent described the operational impact: the district has exhausted carryover for some items and was planning professional development and conferences that may now be curtailed. He also told the board the improvements in state funding do not match inflation and that other state-level changes (including a cited state bill reducing overall education allocations) increase pressure on local budgets.

Board members asked about secondary effects on programs that rely on family benefits, such as community eligibility for free meals and Medicaid reimbursements for ancillary special-education services. The superintendent said he expects increased administrative requirements for families under recent state policy changes could reduce enrollment in programs like SNAP, which in turn may reduce Medicaid billing eligibility and district Medicaid reimbursements.

No formal board action was recorded on July 10. Administrators said they would continue to monitor communications from OMB and the U.S. Department of Education and return to the board with contingency plans for professional development and other programs if the funds remain unavailable.