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Caldwell CFO warns of federal funding uncertainty and reliance on Medicaid reimbursements
Summary
CFO Cheryl Sanderson told trustees the district budget was built on prior federal allocations but that partial grant notices and state holdbacks create uncertainty. She said Medicaid school-reimbursement receipts are "in the neighborhood of 2 million" and that any cuts or block-grant changes statewide would affect services and staffing.
The Caldwell School District’s finance team briefed trustees on July 28 about pending federal allocations, recent partial grant notices and the district’s reliance on Medicaid reimbursements for billed special-education medical services.
CFO Cheryl Sanderson said district budgeting for the new year was prepared using last year’s federal allocations but warned that final state notices could reduce or delay expected funds. "We were budgeting based on last year's numbers," Sanderson told the board, adding state allocations remain uncertain while the state processes federal releases.
Sanderson summarized the district’s Medicaid practice and fiscal importance: schools may bill Medicaid for certain medical or habilitative services provided to eligible students — speech therapy, occupational therapy and behavior intervention were cited as examples. "It's in the neighborhood of 2 million" per year, she said of the district’s Medicaid reimbursements, noting reimbursements require detailed eligibility documentation and a local matching percentage.
Administrators also described how proposed changes to federal funding streams — including talk of block grants — could shift how funds are allocated to districts and raise equity concerns for specialized services. Trustees asked administration to continue conservative budgeting, flag risks, and return with incremental funding scenarios once state allocations are finalized.
What’s next: Administration will present finalized budget adjustments and scenario analyses once the state posts allocation notices and will continue monitoring Medicaid eligibility and reimbursement trends.
