SFAB approves continuation of cash balance cap waiver
School districts will continue to receive flexibility with their general fund cash balances.
Members of the School Finance Accountability Board (SFAB) unanimously approved a resolution extending the blanket waiver for school districts receiving federal funds tied to COVID-19 so that would not be penalized in state aid reduction should they exceed the general fund cash balance cap.
SFAB Chair, and Huron Superintendent, Terry Nebelsick called the waiver a “continuation of our work” from last September when the board approved a similar waiver.
The most recent waiver will be in effect from July 1, 2021 through June 30, 2023 as school districts will continue to be eligible for federal funding through the Fall of 2023. Sec. Tiffany Sanderson noted funds provided in the Fall of 2023 would be within Fiscal Year 2024 and if an additional waiver is needed it could be addressed then.
DOE Director of Finance and Management Cody Stoesser told board members “$190 million to schools” could be provided through the federal COVID-19 relief funds.
The waiver offers school districts flexibility to properly spend the federal funds they receive without having to worry about how it will affect their general fund cash balance and potentially their state aid, should they exceed the cap.
“It’s only wise to give people time to spend the money,” SFAB Member, and Mobridge-Pollock and ASBSD President, Eric Stroeder said. “It will lead to better value.”
SFAB members will present the waiver to the Joint Appropriations Committee for final approval.
For updates on the waiver and other issues affecting K-12 public schools, check the ASBSD Blog.
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