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Staff warns federal funding uncertainty could force tough choices; carryover seen as necessary cushion
Summary
Staff told the committee that roughly 10% of the district budget flows from federal sources and that a current federal-state legal dispute is holding funds flat; they urged maintaining an adequate ending fund balance to buy time for decisions.
District staff cautioned that federal funding uncertainty presents a material operational risk. "Close to 10% of our budget is federal dollars," a staff member said, describing litigation between states and the federal government that has created an injunction and flat funding in the short term.
Staffers urged prudence: with roughly one month of payroll potentially on the line in a worst-case timing scenario, they recommended preserving an ending fund balance to allow the district to make deliberate decisions rather than react within 24 hours. The committee discussed possible scenarios and stressed the importance of multi-year planning to avoid abrupt reductions to programs or staff.
