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Staff flags federal funding risk and injunctions; 10% of district budget flows from federal sources
Summary
Budget staff warned that roughly 10% of the district budget comes from federal funds routed through the state and noted ongoing litigation in multiple states; staff said loss of those dollars would require difficult cuts and that ending fund balance buys time to plan.
Budget staff told the committee about legal uncertainty affecting federal funding flows. Staff said roughly 10% of the district’s budget comprises federal dollars that flow through the state and that there is an ongoing injunction and lawsuits in multiple states that could affect payment timing and amounts.
“10% doesn't sound like a lot until you do the math,” a staff member said, describing how a funding reduction at that level would equal roughly 23 FTE for the district and could force the district to reintroduce meal charges or other program reductions if federal flows stopped. Staff recommended preserving an ending fund balance to buy decision-making time and avoid precipitous actions.
