Missoula trustees authorize up to $1 million from interlocal reserve amid federal funding hold

The Missoula County Public Schools Board of Trustees voted unanimously on July 15 to authorize drawing up to $1,000,000 from the district'held interlocal reserve as a contingency while federal education funds remain in dispute.

Superintendent Hill briefed trustees on the potential local impacts of nationwide federal funding holds. She said Title II funds that support class-size reduction amount to roughly $235,000 and cover about five full-time equivalent positions; Title III funds for English-language learners amount to about $25,000; and Title IV after-school programming funding (including city Parks & Recreation contracts and Boys & Girls Club support) totals approximately $230,000. Combined with delayed funding and carryover, Hill said the district budgeted in excess of $1,000,000 for these programs and related salaries and benefits.

Administration described options to cover payroll and program costs if federal disbursements are not released on schedule. The interlocal agreement account was described as a district rainy-day source; staff reported an approximate balance of $3,000,000, with portions already earmarked for future uses such as curriculum purchases. Trustees discussed reimbursement mechanics (spend-then-reimburse vs. hold back), possible program cuts if funds are not paid, legal actions states have taken at the federal level, and guidance from the Office of Public Instruction.

Trustee Wake moved, and Vice Chair Walker Andrews seconded, a motion to authorize use of interlocal funds not to exceed $1,000,000 to maintain staffing and programs pending federal funding outcomes. Trustees discussed wording to ensure the motion did not obligate a specific dollar unless the board chose to do so; after clarification the motion passed unanimously. Administration said if federal funds are later distributed, the district would reimburse the interlocal account.

The board instructed administration to monitor OPI guidance and legislative developments and to prioritize using the contingency as a last resort. The motion was procedural and intended to provide the superintendent discretion to respond quickly if federal funds were not made available on schedule.