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Superintendent says $734,000 Title I cut forces budget trade-offs, cautions on staffing

Bismarck School Board ยท May 29, 2025
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Summary

Superintendent Dr. Fosnaught told the Bismarck School Board that a late federal reduction of about $734,000 to Title I funding will force the district to rework budget plans and could affect roughly 44 federally funded FTE positions; he urged monitoring allocations and scenario planning.

Bismarck, N.D. โ€” Superintendent Dr. Fosnaught told the Bismarck School Board on May 29 that the district was recently notified of an unexpected reduction of about $734,000 in its federal Title I allocation, and he warned that the timing of the notice could force difficult budget choices.

"We were informed that that allocation from the federal government will be reduced by $734,000," Dr. Fosnaught said, adding that Title I funding this year had been about $4.4 million and that the reduction would bring the allocation nearer to $3.6 million. He described the late notice as "desperately poor timing" for staffing and budget planning.

Why it matters: Title I pays for intervention staff and other supports for high-poverty schools. Dr. Fosnaught said Title I dollars fund roughly 43.9 FTEs (about 44 positions) in Bismarck Public Schools, and reductions translate quickly into people costs.

Dr. Fosnaught also listed possible further cuts if other federal buckets were reduced similarly: about $150,000 from Title II (professional development), roughly $10,000 from Title III (English-language supports), and about $94,000 from Title IV (well-rounded student supports and technology). He cautioned those numbers were preliminary and that the district is still awaiting confirmation for several allocations.

"80โ€“85% of our costs as a district really go to people because we're in the people business," Dr. Fosnaught said. He explained that statutory timelines in the North Dakota Century Code constrain the district's ability to reduce positions after contracts have been issued and that late federal notice leaves the district with limited options other than absorbing costs into local budgets or adjusting programs.

Board response and next steps: Board members pressed for details on how the district would prioritize services and whether open positions could be reallocated from federally funded roles into the general fund. Dr. Fosnaught said the district has begun scenario planning, communicating with staff and bargaining representatives, and prioritizing near-term spending reductions (such as pausing certain purchases) while waiting for final allocation notices.

He said the district has "already started to communicate with staff" and will continue to "monitor allocations" and integrate the information into the budget cycle.

What the district said it may do: If the reductions are final, the district would consider moving some federally funded positions into the general fund or trimming funded activities, but Dr. Fosnaught said either approach would shift costs locally and could constrain other operational expectations.

The superintendent requested ongoing board engagement during the budget process and said staff will continue to present scenarios to the board as more information becomes available.