One‑time pandemic and block grants are propping up positions; board warned those funds will expire

District staff told trustees that a large portion of recent budget increases reflect one‑time pandemic and block grants that were programmed to support specific programs and positions. Staff said the district received sizable one‑time allocations since the pandemic (staff cited an $81 million historical inflow across many years) and highlighted the Arts & Music instructional materials block grant (total allocation cited at $21.3 million, with $9.4 million budgeted in 2024–25 and $5.6 million already spent).

Finance staff explained that these one‑time funds have been used to ‘‘buy down’’ planning ratios (lower class sizes) and to support positions such as elementary music teachers and counselors. As those grants expire the positions or services they fund will need a new funding source or be moved into the unrestricted general fund, increasing ongoing obligations. Staff outlined a phased plan that moves some positions from restricted grant support to the unrestricted fund as grants dry up and noted the district will review the timing and composition of those moves as part of deficit‑reduction planning.

Board members asked staff to identify potential reprogramming opportunities and to be mindful that repurposing board‑approved grant budgets yields only one‑time relief and may conflict with previously adopted LCAP priorities. Staff agreed to include detailed grant expenditure roll‑forwards and potential reprogramming in the next packet and to clarify which positions are at risk when grant funding ends.