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Board authorizes up to $1 million from interlocal fund as federal funding remains withheld
Summary
Facing federal holdbacks on Title funds, the school board authorized using interlocal reserve funds—up to $1,000,000—to cover payroll and programs that federal grants normally fund, with staff saying they would reimburse the account if federal payments arrive later.
Missoula County Public Schools trustees voted unanimously July 15 to authorize the use of interlocal reserve funds—capped at $1,000,000—to temporarily cover programs and personnel normally paid for with federal grants that remain on hold.
Superintendent Micah Hill told the board the district expects the most immediate impacts in Title II (class-size reduction), Title III (English learner supports) and Title IV (after-school and well-rounded-education programming). Hill said Title II typically funds “about $235,000” that supports five full-time equivalent positions—“3 high school and 2 elementary” staff positions coded to those dollars—and Title III provides roughly $25,000, which supports an English learner tutor. Hill said Title IV Part B supports after-school programming and associated staffing; she described roughly $230,000 paid to the city’s parks-and-rec department and other providers for after-school programming. Overall, Hill said the district budgeted “in excess of a million dollars,” combining expected federal monies and carryover.
District staff recommended trustees authorize a contingency draw on the interlocal agreement so payroll and contract obligations can be met in September if federal reimbursements do not arrive. The administration initially referenced a budgeted amount of $1,078,004.78 but the board settled on a not-to-exceed authorization of $1,000,000. Superintendent Hill said the interlocal carries about $3,000,000 in total but some of those funds are already earmarked for future expenses.
Trustees debated whether to authorize the full amount the administration presented or a smaller figure. Trustee Walsh noted reimbursement requires that the district spend money first and then seek reimbursement; the administration said it would, if federal funds arrive later, reimburse the interlocal account. Trustee Mercer and others voiced concern about using elementary-designated funds to cover broader costs but supported the measure as a last-resort contingency to avoid immediate layoffs or program cuts.
A motion to allow the interlocal draw (amount not to exceed $1,000,000) passed unanimously. The administration said it would prioritize expenditures and, if federal funds are received later, restore the interlocal balance.
Trustees and district staff said advocacy continues at state and federal levels: staff noted 26 states and D.C. have filed litigation seeking release of previously allocated federal education funds, and OPI (Montana Office of Public Instruction) has issued guidance advising districts not to count on receiving the funds until they are released.
