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District finance director outlines $9 million in federal funding, flags possible future effects of direct-certification changes

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Summary

Director Sherry Thompson told the board the district receives about $9 million annually in federal funds, including roughly $4.5 million in USDA meal funding and $1.85 million in Title funds, and described how changes in direct certification and Medicaid eligibility could affect compensatory revenue and nutrition services.

Roseville Area Schools finance staff told the school board on March 18 that the district receives roughly $9 million a year in federal funding and is watching proposed and emergent changes in federal and state processes that could affect future revenue flows.

Director Sherry Thompson, presenting the monthly financial report, said the largest federal share is the U.S. Department of Agriculture funding for the district's meal program, which she estimated at about $4.5 million. "The school district receives about, just close to $9,000,000 in federal funding the biggest portion of that is about 4 and a half million dollars that we received from the USDA to fund our meal program," Thompson said.

Thompson explained that some USDA grants flow through the Minnesota Department of Education to districts and that, for the grants the district currently receives, those funds should continue for the current grant period. "That does not impact us. Those funds will continue to flow, as far as that goes," she said.

The board was advised to monitor changes to electronic direct certification and Medicaid eligibility because the district's Title funding and state compensatory revenue rely on free- and reduced-price meal and direct-certification counts. "This also could impact some of our state compensatory revenue... if less families are certified or are approved under the electronic or direct certification, what kind of burden that may put on the state funding portion," Thompson said. She noted the district has historically had a hold-harmless approach to compensatory funding, but the state is shifting calculations to rely on direct certification rather than paper applications.

Thompson also provided other federal funding figures discussed during her report: about $1.85 million in Title funding (Title I, II, III, IV combined), approximately $2.0 million annually in special education supplement, about $94,000 for adult basic education, and roughly $600,000 annually from a 21st Century grant that is up for renewal next year. The district also partners with a consortium ("916") for career and technical education reimbursements.

Board members asked whether the business services office had received increased calls from the public; Thompson said they had not seen a notable uptick but that the Department of Education had been communicative. She and board members said they might include a summary of the funding context in a district newsletter to inform families.

Thompson said the district's fund balance provides a cash buffer if federal reimbursements are delayed: "We have those fund reserves to cover that. So it doesn't impact our operations."

Provenance: The financial update was presented as the monthly financial report; the discussion ran from the beginning of the financial report section through board follow-up questions and committee references.