School board approves using recovered ESSER reimbursements to reduce new high school obligation

The Halifax County School Board on July -- approved a plan to apply recovered federal ESSER (Elementary and Secondary School Emergency Relief) reimbursements and other one-time funds to reduce the division's remaining financial obligation tied to the new high school.

Board members voted to accept a staff plan that directs an anticipated ESSER reimbursement for completed HVAC work, other one-time ESSER revenue, and an identified contractor contingency return toward the outstanding high school obligation. The motion passed on a roll-call vote recorded as 7-0.

Staff said the board already paid $1,304,023 toward the district's $4,000,000 obligation related to the project and has $2,695,982 remaining. "Thus far, we have paid $1,304,023," said the presenter during the finance briefing. Officials proposed applying $560,915.34 in FY25 contractor payments that are eligible for reimbursement, a projected ESSER surplus of about $1,455,817, and up to $679,244.66 from a contractor (Shockey) contingency that may revert to the division, if available, to cover the remaining balance without tapping the operating carryover.

Why it matters: staff said the ESSER program reimburses eligible expenditures after the district pays contractors; recovering those reimbursements frees cash that can be applied to the high school obligation without cutting classroom budgets. Board members and staff also noted the final obligation could be lower if demolition and final contract costs come in under estimates.

Board discussion included requests for timing and risk. A board member asked when the ESSER reimbursements would arrive; staff replied that the $560,915.34 reimbursement should be filed and received within about 30 days of submission and that most of the work is expected to finish by students' return, placing funds in hand by September or October. Staff cautioned the Shockey contingency amount could change pending final demolition needs.

The board took a formal vote after the presentation. The roll call recorded the following votes: District 1, Mister Brown ' yes; District 2, Mister Lloyd ' yes; District 4, Mister Mason ' yes; District 5, Mister Clay ' yes; District 6, Michelle Lowe ' yes; District 7, Miss Coleman ' yes; District 8, Mister Fox ' yes. The meeting record shows the motion carried unanimously.

The board asked staff to monitor the contingency and reimbursements and return with firm numbers if the Shockey contingency is not available. Staff also noted that if final high school project costs are lower than anticipated, the district's remaining obligation will correspondingly decrease.

Votes at this meeting will also list this item alongside other formal actions taken.