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Late federal waiver cut puts $3 million Williamsport HVAC payment at risk, WCPS officials say
Summary
Washington County Public Schools staff told the board a U.S. Department of Education memo ended late-liquidation authority for COVID relief grants, jeopardizing about $3.34 million in encumbered funds — including $3 million budgeted for final Williamsport High School HVAC work.
Washington County Public Schools officials told the board on May 20 that a federal memo ending "late liquidation" for COVID-relief grants threatens $3.34 million in encumbrances, including about $3 million earmarked to finish a Williamsport High School HVAC replacement.
Superintendent Dr. Sabine introduced the budget work session and turned fiscal questions to Chief Operating Officer Mr. Prue, who informed the board that, per a Saturday letter from Maryland State Superintendent Dr. Wright accompanied by a U.S. Department of Education memo, "all late liquidation for any of the COVID relief grants ceased on Friday afternoon last week." Mr. Prue said the district had expected to use late-liquidation authority to spend encumbered COVID funds through Sept. 30, 2025.
The district reported approximately $3,340,000 still encumbered under COVID grants. The largest single remaining encumbrance, Mr. Prue said, is roughly $3,000,000 “for engineering contract management and actual construction to complete the Williamsport High School HVAC replacement project that is underway, and has its last and final phase this summer of replacement equipment.” Other smaller closeouts total about $285,000 for the Marshall Street project plus a handful of residual amounts.
Why it matters: Washington County schools expected to rely on that late-liquidation extension to finish major capital work this summer without shifting costs to the general fund. Without the extension, staff said, the district faces a shortfall that could require reallocating general-fund dollars or delaying work.
What officials said they will do: Mr. Prue told the board he was not yet "alarmed" but said the item is "on our radar screen" and that staff will continue discussions with state officials. He also noted the district has roughly $125,000 in American Rescue Plan homeless grant funds and other smaller ARP balances that could be applied to programs, but that the $3 million Williamsport encumbrance is the primary concern.
Board reaction: Board members asked whether the decision is final and where alternative funding might come from. Several members said staff should continue to pursue state and federal clarification and present options at the next work session. President Zittmeyer called for continued monitoring and additional briefings to the board.
What is not in this report: Staff said the matter is evolving and that they could not confirm whether federal or state offices will reverse the late-liquidation decision. The board has not taken any formal vote on reallocating funds.
Looking ahead: District staff said they will return with specific options for covering the Williamsport work if the late-liquidation authority is not reinstated, and flagged the matter as a potential constraint on the FY26 budget that the board must resolve before final adoption.
