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District warns federal ESSER extension reversal could force local payment for nearly‑completed projects

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Summary

Sullivan County Schools told the board the U.S. Department of Education withdrew a previously granted extension for ESSER-funded projects, leaving the district at risk of having to pay for contingency-funded items — including a canopy and ventilation work — if federal reimbursement is denied.

Board members were told the district completed several ESSER-funded projects under an extension the state had relayed from the U.S. Department of Education; that extension was later rescinded by the U.S. Department of Education, and the district now faces possible local liability for project costs.

Staff described the situation in detail: the district committed funds and completed projects (roofing, a canopy and a ventilation fan) after an initial commitment deadline. The district relied on a federal extension to finish projects delayed by material supply problems. District staff said the Department of Education's recent reversal removed that extension and instructed some districts they might have to cover costs themselves.

Why it matters: Several projects were finished on the assumption of federal reimbursement from leftover contingency funds. If federal reimbursement is denied, the district may have to pay those invoices from local funds, which would affect the district’s year‑end funds and could require budget adjustments.

Staff reported they have submitted documentation to the state and were awaiting a response that would go to the U.S. Department of Education. They described mixed federal guidance: an email directing districts not to continue collecting and reporting certain data was described as "odd" by staff and raised concern that the federal program office may be winding down oversight.

Board reaction and next steps: The board asked about timing and potential fiscal exposure. Staff said the invoices are expected to be paid this fiscal year and that the district will continue submitting documentation and appealing for reimbursement, but there are no guarantees. Staff said they will reserve local funding as needed to avoid leaving projects unfinished if federal approval does not arrive.