Board flags about $2 million in potentially unspent ESSER funds, asks for options before September deadline

District staff told the Goshen County School District #1 board that the district may have approximately $2,000,000 in unspent ESSER or "extra" funds. Marcy said the state asked for information about remaining funds and that the district can either identify allowable expenditures and amend the budget before the state deadline or return the unspent money.

"We have about $2,000,000 that looks to be unspent that, we wanna talk a little bit about," Marcy said, and staff noted one commonly accepted use is recruitment and retention. Mr. Krangert said audit findings in other districts have narrowed acceptable ESSER expenditures and urged care when planning uses to avoid subsequent general-fund liability after audits.

Board direction and next steps: staff recommended the board consider agenda items at upcoming meetings (including an August special meeting or the July 2025 meeting) to identify appropriate expenditures. If the board decides to spend some of the escrowed funds, staff said they could amend the FY25 budget when the board returns in July 2025; if the board finds no appropriate uses, the funds could be returned by the state deadline. The board did not take a formal vote on a specific ESSER spending plan during the provided segments.

Community impact: staff emphasized that options can be developed that align with the federal guidance (with recruitment and retention cited as likely candidates) and cautioned that some categories vetted in earlier years later proved disallowed in audits of other districts.