Treasurer warns Westlake schools could lose about $2.5 million if federal education funding shifts

Treasurer Mr. Hopkins told the Westlake City Schools Board of Education at its Feb. 10 meeting that proposed or possible changes to the U.S. Department of Education could materially affect the district’s finances, potentially reducing available federal funding by roughly $2 million to $2.5 million.

Mr. Hopkins said the district received about $4,000,000 in federal funds in fiscal 2024 and that “almost $2,000,000” of that total came from COVID-relief payments that were winding down. He said the district’s largest regular federal grants fund Title I reading and math support, IDEA (special education) services and free-and-reduced-price lunch reimbursements, with smaller amounts for Title II professional development, limited-English-proficiency programs and Title III immigrant/EL supports.

The treasurer framed the risk as both financial and procedural. “I don’t believe the U.S. Department of Education can be closed or disbanded through an executive order,” Mr. Hopkins said, “it was created by an act of Congress, so it would take an act of Congress to close it.” He added that program administration could be moved elsewhere, and that states could receive and redistribute funds differently, creating uncertainty for local districts.

Mr. Hopkins estimated the worst-case financial hit at about $2.5 million and said the district could cover that shortfall for the current year using carryover balances but that doing so would rapidly reduce reserves and likely push officials to seek voter approval for additional local revenue. He said district leaders would need to decide whether to replace grant-funded services with general-fund dollars or reduce services if federal funding were lost.

On timing and existing obligations, Mr. Hopkins noted that many program costs are salaries already incurred and that the district submits reimbursement requests to federal grant programs roughly every one to two months. He told the board that, depending on each grant’s billing status, “about a third” of this year’s reimbursements had been received but that the district had already incurred roughly half of its yearly expenditures.

The treasurer and superintendent said the district’s staff that manage grants — including Jane Perry, Paul Wilson and Mrs. Musselman — coordinate consolidated grant applications each year. Mr. Hopkins described the consolidated grants as noncompetitive but requiring annual application and said a shift in federal administration of grant programs could reduce district funding if state redistributions differed.

Mr. Hopkins urged caution and said the board and administration were watching developments in Washington. “Hopefully, we’ll know in the next couple months,” he said.

Board members did not vote on funding changes at the meeting; the presentation was an informational finance update.