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Superintendent: federal school grants must be spent before districts are reimbursed
Summary
Amanda Bush said federal funds arrive as grants that require districts to spend first and then draw down reimbursements, and she emphasized that districts must have cash flow available to use grant funds.
Amanda Bush, interim superintendent for the Grangeville School District, explained how federal grant funding works for schools. "That money is given to us through grants," she said, and added that grants require districts to spend money first and then draw down the amount granted.
"That means we spend the money and then draw down on the amount we were granted," Bush said. "So we have to have the money and spend it before we ever get reimbursed for it." She offered this explanation in the context of describing why local levies remain necessary to cover timing and cash-flow gaps.
Bush—s remarks underscore cash-flow considerations for small districts that rely on a mix of state, federal and local funding.
