Carter County board approves $126,493 from fund balance after federal reimbursement halted
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Summary
The Carter County Board of Education voted to cover a FY22 bus purchase with $126,493 from the district fund balance after federal reimbursement under ESSER was not paid; roll call showed unanimous yes from seven board members present.
The Carter County Board of Education voted to transfer $126,493 from the district’s fund balance to cover a school bus purchase after federal reimbursement did not arrive.
Board members approved the payment during the meeting after finance staff explained that the bus — ordered in fiscal 2022 using ESSER (Elementary and Secondary School Emergency Relief) program authorization — arrived in October 2024 but was not reimbursed because a federal reimbursement process ended in February under new leadership in Washington.
"This was the first ESSER bus that was ordered back in FY22. Because of COVID and all that, production had been on hold. Fast forward two years, the bus arrived to the district in October of 2024. However, federal money works on reimbursement... in February, under the new leadership in Washington, the decision was made that all federal reimbursements ended in February, and we did not receive reimbursement for that bus," finance staff Nancy Hatter said. "So tonight, I'm asking for the total of $126,493 to be pulled from fund balance pending any reimbursement from federal sources."
Board member Keith Bowers made the motion to fund the bus from the district’s fund balance. The motion was seconded. The board then conducted a roll-call vote: Tony Garland — yes; Keith Bowers — yes; Renee Lewis — yes; Dylan Hill — yes; Gary Oakes — yes; Jeremiah Tolley — yes; Danny Ward — yes. The motion carried.
The board’s action covers the district payment now; Hatter said the district will continue to pursue any federal reimbursement that might still be approved. The board did not attach conditions to the transfer, and no abstentions or no votes were recorded on the motion.
The vote came amid other routine meeting business. Earlier the board adopted the meeting agenda and approved the consent agenda by voice vote.
Why it matters: the board applied general fund balance resources to replace an expected federal reimbursement, moving school capital costs onto local funding at least temporarily. Finance staff indicated the district completed the required reimbursement paperwork and is awaiting a federal decision on previously approved reimbursements.
What’s next: district finance staff will continue to track federal reimbursement decisions and report back if funds are recovered.