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Vicksburg-Warren board flags tax-collection shortfall, reviews $7.9M ESSER reimbursement issue
Summary
Board members were told ad valorem tax collections lag typical levels and staff outlined steps — including a possible shortfall resolution — while officials described changes to federal ESSER reimbursements that may require the district to reclaim $7.9 million through allowable prior-year expenditures.
The Vicksburg Warren School District Board of Trustees was told on an administrative financial update that ad valorem (property tax) collections are below the normal rate and staff are preparing a possible shortfall resolution to present to the county board of supervisors.
“Our last ad valorem check was about $565,000,” said Mr. Pratt, a district finance staff member, adding that as of the report the district had collected roughly 85% of its ad valorem request for the year and that the district typically is above 90% at this point.
The shortfall conversation prompted a plan to meet next week with Jim Young, a consultant the board previously authorized staff to retain, to determine whether to file a formal shortfall resolution. Dr. Holloway, the district superintendent, said the board would need to adopt a resolution before the administration sends a request to the county board of supervisors.
Why it matters: ad valorem collections are a major local revenue source for the district. Staff warned that slower collections will reduce near-term cash flow while payroll and summer obligations continue.
Board members also discussed federal Elementary and Secondary School Emergency Relief (ESSER) funds tied to construction projects. Pratt said the district had originally budgeted roughly $7.9 million of ESSER-eligible construction and renovation projects but that federal reviewers have tightened allowable expenditures and begun rejecting some construction claims.
Pratt said the U.S. Department of Education is now limiting some reimbursements to items directly related to addressing student learning loss and that the district plans to refile prior-year expenditures — for example teacher salaries and custodial services — that may be allowed as reimbursable costs so the district can reclaim as much of the $7.9 million as possible.
“The federal government changed the rules while the game was being played,” Pratt said, adding that the district “did nothing wrong” in starting projects after initial approvals.
Pratt noted there is still an approval and appeals process. He said 16 states have successfully litigated to restore funds in a separate dispute and that Mississippi has not joined that litigation.
Board action: The board approved the monthly financial report (agenda item F‑1) by voice vote.
What’s next: Staff will meet with the consultant to advise on the timing and content of a shortfall resolution and will report back to the board; staff also said they will pursue reclassification of prior expenditures where allowed under ESSER guidance to restore reimbursement.
