D91 Schools Face $900K Shortfall After Federal Funding Freeze

Idaho Falls Schools Face $900,000 Deficit Due to Federal Funding Freeze

Idaho Falls School District 91 is grappling with a significant financial challenge as it prepares for the upcoming school year. A federal education funding freeze, impacting schools across the state, has resulted in a $900,000 deficit for the district.

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Superintendent Karla LaOrange addressed the Board of Trustees, outlining the potential impact of this funding freeze on various programs within the district. The freeze, which went into effect July 1st, stems from a larger $6 billion withholding of federal education funds. Idaho’s share of this freeze amounts to approximately $33 million, affecting programs crucial for supporting migrant students, providing professional development for teachers, and offering before- and after-school care.

“This situation is not due to any mismanagement at the district or school level,” LaOrange clarified. “It’s a consequence of broader fiscal policies at the federal level.” The purpose of the board meeting was to inform the community and school staff about the funding situation. No decisions regarding the district’s response have been finalized.

Impact on Title Programs

The funding freeze has particularly affected several Title programs, each designed to address specific educational needs. LaOrange detailed the specific areas within each title that are experiencing funding shortfalls:

• Title I-C (Migrant Education): This program, which supports families who move frequently following harvest seasons, faces a $92,257 shortfall. This impacts the Migrant Parent Advisory Council ($500), program operations ($882), and staff salaries and benefits ($90,875).

• Title II-A (Professional Development): This title, which focuses on professional development for educators, especially those supporting English language learners, is short $14,783. This includes funding for supplies ($2,000) and indirect costs ($4,831). Additionally, the withholding impacts salaries, benefits, and stipends for new teacher induction programs, totaling $404,415. The overall impact on Title II-A is $426,029.

• Title III-A (English Learners): Programs designed to aid English learners are facing a $78,227 shortfall. This includes supplies for new teachers and introductory materials ($1,025), licenses for learning materials ($800 annually), and salaries and benefits for staff supporting these students ($76,402).

• Title IV-A (Student Support and Safety): This title, which focuses on student support and safety initiatives, is experiencing a $304,002 shortfall. This includes funding for Linewize, a cybersecurity software that monitors student searches for concerning content, and StopIt, an app for anonymous reporting of bullying or other concerns ($33,990). It also impacts elementary school field trips ($25,000) and staff salaries and benefits ($245,112).

Title IV-B, which addresses before- and after-school programs, is not utilized by District 91.

The cumulative impact of these shortfalls across the Title programs amounts to $900,515, with $740,302 specifically affecting staff salaries and benefits.

Compliance Challenges

LaOrange emphasized that each Title program carries mandatory requirements from federal and state governments. For example, Title I-C requires maintaining the Migrant Parent Advisory Council and identifying eligible students. Any reduction in Title I-C funding would necessitate a review of how to meet these obligations with fewer resources while adhering to federal mandates.

State mandates also require districts to retain and support teachers, including providing new teacher induction programs and necessary materials. The district also funds programs like Linewize, StopIt, and reading initiatives.

Funding Options and Restrictions

LaOrange addressed potential funding options, reminding the board that federal dollars are intended to supplement, not replace, existing district services. These funds are designed to enhance the educational experience.

However, if the district chooses to restore these services using general funds, federal law prohibits the district from later utilizing any restored federal funding for the same purpose. This significantly limits the district’s flexibility in future planning.

“None of us anticipated this situation a year ago,” LaOrange noted.

Potential Solutions

The board is considering five potential options, each with varying approaches to funding the affected programs:

1. Fully Fund All Titles: This option would restore all affected programs to their previous funding levels, requiring an investment of $900,515.

2. Restore Salaries and Benefits: This would prioritize retaining staff by restoring salaries and benefits but would eliminate funding for other expenses, costing $740,302.

3. Maintain Certified Staff and Fulfill Mandates: This option would focus on maintaining certified staff positions and meeting all federal and state mandates, costing $743,327.

4. Maintain Certified Staff and Evaluate Other Costs: Similar to option 3, this approach would maintain certified staff but would involve a careful evaluation of other costs to determine what can be funded. The cost for this option ranges between $245,000 and $900,515, depending on the extent of funding.

5. Maintain Certified Staff and Reduce Services: This option would maintain certified staff positions but reduce services to align with the original budget. Given that many Title programs are funded through a combination of federal and general funds, this option would necessitate increased reliance on local funds. The cost for this option ranges between $400,000 and $700,000.

Difficult Decisions Ahead

Trustee Paul Haacke raised concerns about the budget and the potential sacrifices required to fund these programs if any of these options are pursued. LaOrange acknowledged that the general fund has already been budgeted, and some planned items may need to be cut. However, no final decisions have been made.

LaOrange also mentioned discussions about the State of Idaho potentially utilizing its rainy-day fund to assist school districts facing similar funding challenges. The situation remains fluid, and the board is actively exploring all available options to mitigate the impact of the federal funding freeze on District 91 students and staff.