School District Budget Challenges Amid Federal Grant Delays
The Sedona Oak Creek School District has a significant budget meeting scheduled for August 6th. However, district officials and board members are already diving into financial documents.
During an online meeting on July 14th, the school board approved the budget unanimously, though board member April Payne was absent. Notably, there were no public comments made. The district’s largest expenditures include over $6.5 million for maintenance and operations, around $731,000 for classroom site funds, and approximately $524,000 designated for capital projects.
In previous years, the district typically forecasted a 5% carryover from its maintenance operations fund. This year, though, that figure may be lower due to a drop in enrollment and potential losses in federal funding.
The district anticipates receiving federal grants for the 2026 fiscal year: nearly $28,234 from Title II, about $18,293 from Title III, and around $12,930 from Title IV. The Arizona Department of Education notified the district on July 6th that these funds have yet to be released to the state.
Stacy Saravo, the Finance/HR Director, mentioned in an email that Title II focuses on supporting effective teaching and offering scholarships for recruitment, while Title III addresses language instruction for English learners and immigrant students. Title IV, on the other hand, involves student support and enrichment grants.
A press release from the Arizona Department of Education on July 2nd indicated that the U.S. Department of Education did not issue a Grant Award notice recently, which has contributed to the current funding delays.
On July 1st, the Trump administration postponed a federal grant of $132.3 million meant for Arizona schools, a decision many media sources have linked to the administration’s aim to dismantle certain educational programs deemed as promoting a radical agenda.
Arizona Attorney General Chris Mays highlighted the implications of this funding freeze, noting that many local institutions have already set their budgets and contracts relying on these grants.
The Arizona Department of Education stated that spending reimbursements might still be possible later, depending on future grant approvals. They are working to clarify the situation and ensure access to the necessary funds.
For now, the district is meticulously reviewing affected budgets and plans to limit expenditures to essential services, like scholarships, until the funding situation is resolved. Saravo emphasized the need to manage potential risks during this uncertain period.
Interestingly, on July 18th, the Trump administration did release $1 billion aimed at after-school and summer educational programs.
Yavapai County School Principal Steve King expressed concerns regarding the uncertainties surrounding educational programs in his region. He mentioned the challenges faced in schools and wrote a letter to the Trump administration calling for the release of frozen funds and advocating for the federal Safe Rural School program, which provides annual financial support through U.S. Forest Service revenues.
This program is set to expire at the end of 2023, but a bill was passed by the Senate that seeks to extend funding through 2026 for over 700 counties. The legislation is awaiting House approval.
King pointed out that many districts are scrambling to maintain their programs amid these challenges, especially given the timing of funding notifications just before the school year begins. It certainly compounds the stress of planning for the upcoming school term.
