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Vicksburg-Warren board declares ad-valorem shortfall, approves renewal of 3-mill note
Summary
The Vicksburg-Warren School District board voted to declare a shortfall in ad-valorem receipts and approved steps to cover the gap, including a resolution to issue a 3-mill note and hiring counsel to handle the shortfall note process. School leaders warned federal ESSER funds remain frozen and district revenue is uncertain.
The Vicksburg-Warren School District Board of Trustees voted Thursday to declare a shortfall in ad-valorem receipts and approved a resolution to issue a 3-mill note to cover the gap.
Superintendent Dr. Holloway told trustees the district requested $36,000,000 in ad-valorem collections but received $32,000,000, creating the shortfall the note is intended to cover. "That shortfall note will make up the difference between the two," Dr. Holloway said during the meeting.
The board also approved a separate resolution declaring the necessity to renew the district's existing 3-mill note, which the district uses as temporary financing. The board moved and approved both resolutions by voice vote; trustees recorded the motions as approved without individual roll-call tallies in the meeting minutes.
Why it matters: district leaders said the action responds to a combination of lower-than-expected ad-valorem receipts and uncertainty over federal grant payments. The district reported $7,900,000 in ESSER (federal COVID-relief) funds remain frozen pending U.S. Department of Education review. Finance staff told the board they expect roughly $5,000,000 of ESSER-related obligations will fall into fiscal 2025 and that unresolved ESSER payments would reduce the reported fund balance.
Miss Hughes, presenting the May financials, said the district's May fund balance was approximately $38.2 million but warned the number would likely fall when obligations and frozen ESSER funds are accounted for: "I anticipate approximately $5,000,000 of those [ESSER] expenditures will be attributed into FY 2025," she told the board. The finance presentation also showed a district maintenance month deficit for May of about $1.7 million.
Trustees approved a motion to retain counsel for the shortfall note process; the board indicated it had engaged Jim Long Young law firm to assist with shortfall preparation and paperwork. The board also discussed plans to brief the county Board of Supervisors on the revenue shortfall and financing steps.
Board action and next steps: the board approved the shortfall declaration and the 3-mill note resolution by voice vote. Trustees authorized counsel for the shortfall note and directed staff to proceed with the statutory process for issuing the note; local banks will be solicited to bid on the note as part of the financing process.
The meeting packet and presentations show the district is planning for a reduced year-end fund balance and for some ESSER-funded projects to carry into the next fiscal year, and officials said they will present additional budget adjustments and the note bidding timeline at future meetings.
