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Senator Simmons proposes rainy‑day transfer to offset sudden ESSER liquidation for districts

3636592 · May 30, 2025
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Summary

Senator Derek Simmons offered an amendment to pull $138 million from the state's working cash stabilization (rainy‑day) fund to make school districts whole after a federal decision to accelerate ESSER fund liquidation; the amendment was ruled non‑germane under chamber rules and did not pass.

Senator Derek Simmons proposed a floor amendment seeking $138 million from the state’s working cash stabilization reserve to offset a federal decision that accelerated liquidation of ARP ESSER funds and cut local school districts’ federal aid.

Simmons said the federal agency’s March decision unexpectedly required districts to liquidate ESSER grants immediately, a move he estimated would reduce Department of Education resources by about $138 million and asked the Senate to temporarily use rainy‑day funds to “make our local school districts whole.” He circulated a list of affected districts so senators could see local impacts.

Senator Wiggins raised a point of order citing joint‑rule limits on transferring appropriation authority; the chair agreed the amendment was not germane to an appropriation bill under joint rules and out of order. The Senate then proceeded with final passage of the education appropriation after debate. Simmons said he would continue to work with the department and the affected districts on remedies and noted the department and some districts were appealing the federal decision.

Simmons’ proposal did not become law; senators described options including continued negotiation with federal officials, appeals by the department, or seeking relief in a future legislative session.