After the third federal COVID-19 pandemic economic relief package was enacted, Bulloch County Schools are eligible for a cumulative $36.8 million from the three packages combined, the school system’s assistant superintendent for business services recently reported.
Assistant Superintendent Troy Brown showed the Board of Education that total during the same March 25 meeting where he and Superintendent Charles Wilson outlined a proposal for a new Southeast Bulloch High School, expected to cost more than $50 million. So, Brown needed to point out that the special federal funding legally cannot be spent for that purpose.
"It can’t be used for facilities like that, to build a new school," he said in answer to a board member’s question. "But besides that there were very few restrictions that were put upon it, none of which we have been able to identify that keep us from being able to work our plan and being able to use this to meet our priorities and our initiatives."
The question had been whether there are restrictions on the third round of funding, called ARPA for the American Rescue Plan Act, other than a requirement that school systems use 20% of it to remedy "learning loss" from COVID-caused disruptions.
Brown presented information on the special, federal funds along with a timeline for adoption of the school system’s regular budget for fiscal year 2022, which begins this July 1.
"The purpose of this funding is to provide school systems with resources to sustain operations during the economic recovery," he said. "In our case, that funding will be used to strategically sustain our district during uncertain economic conditions and prioritize recovery from the learning crisis that developed as a result of COVID-19."
In perspective
The $36.8 million in special funding will be spent and accounted for over several fiscal years. But for comparison purposes, it would equal more than 40% of the school system’s projected fiscal year 2021 general-fund revenues of $90.2 million.
With the year’s spending predicted to top $94.3 million, that budget was approved last summer with a $4.1 million projected deficit, although the board expected to cover that from its $23 million local reserve.
But a predicted sharp decline in local sales tax revenue never materialized, and now the school system will benefit from three successive federal stimulus or relief packages.
CARES I and II
Under the first package enacted in spring 2020 as the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, the school system was awarded $2.6 million. Then, in the second round of funding, nicknamed CARES II and signed into law Dec. 27 by then-President Donald Trump, the Bulloch School system was allocated $10.5 million.
ARPA money
Now, the American Rescue Plan Act of 2021, signed March 11 by President Joe Biden, funnels even more money to state education agencies and through them to schools.
Based on information from the Georgia Department of Education, Brown reported that the Bulloch County system “has been awarded” $23.7 million under ARPA. That includes $19 million in less-restricted funds plus the 20% “set aside” of $4.7 million that can only be used to address learning losses.
In current fiscal year 2021, the school system is using CARES I and II funds to offset its deficit from previous state funding cuts and "increased operational costs associated with the pandemic" while strengthening its financial position, Brown said.
In the upcoming, 2022, fiscal year ARPA “set aside” funds will be budgeted to intentional efforts to address learning losses. Meanwhile, the less restricted portion of the money could increase the school system’s general-fund balance "to sustain us through the next three to five years while we address those learning gaps and navigate through those uncertain economic times," Brown said.
Fall 2024 deadline
School systems have until Sept. 30, 2024 to spend their allotted ARPA amounts in approved ways. That puts the final deadline three months into the school district’s fiscal year 2025.
But all of the school funding will actually take the form of reimbursement for money spent, Brown said after the meeting. The school system must first submit its spending plans to the state Department of Education for approval and then request the money as it is spent.
Bulloch County Schools district administrators want to use of the federal funds along with state and local funds "to maximize flexibility" and sustain "efforts over the long-term" so they “don’t have to prematurely halt needed student support," Brown said.
Principals and other school leaders have been planning ways to address learning losses, including efforts within regular classes as well as after-school and summer programs. More information about these plans will be presented to the board along with funding details for the fiscal 2022 budget, Wilson said.