In a statement by Gov. Phil Murphy last week, it was noted that the Delran Township School District was one of the 20 school districts across the state to face $85 million in federal funding cuts.
“We were recently notified that New Jersey is facing yet another devastating federal funding cut from the Trump Administration,” the governor said on March 31, “impacting critical infrastructure projects across 20 school districts to improve student health and safety.
“These cuts are reckless and irresponsible, allowing us very little time for contingency plans,” Murphy added. “New Jersey is proud of its best-in-the-nation public-school system, and we will do everything we can to restore this funding and maintain our reputation for excellence in public education.
“At a time of unprecedented chaos and uncertainty at the federal level, Washington is failing the next generation.”
School Superintendent Lisa Della Vecchia addressed the funding loss in a letter to district families, faculty and staff on April 2.
“The funding that was cut was spent on projects previously approved by the NJDOE (New Jersey Department of Education) and the U.S. Department of Education,” she wrote. “School districts are required to spend the grant funds up front and submit for reimbursement.”
Upon notification of the loss, the district began to gather information to determine the amount of the funding deficit, lost projects that would not be reimbursed and the timing of this situation. The following
was determined:
● The funding is related to reimbursement of final expenditures for capital projects thath allowed the district to make improvements to the HVAC (heating, ventilation, and air conditioning) system. These projects were already approved and completed in Delran school.
● The NJDOE allowed districts to apply for an extension of reimbursement of payments to contractors for approved capital projects. This process is known as and defined by the USDOE as “late liquidation.”
● The “late liquidation request” had to be submitted to the NJDOE by June 28, 2024, well before the end grant closed on Sept. 30.
● The district began the process to submit the request for late liquidation because it had already awarded the projects and started work in two of the buildings. The last phase of the HVAC project could not begin until all materials were available and the buildings were unoccupied; that happened last summer.
● Delran’s board of education approved the submission of that request at the June 24 board meeting.
● The request was finalized and submitted to the NJDOE on June 27.
● The district was notified that the request to late liquidate up to $717,064 was approved by the NJDOE/Office of Grant Management on July 1.
● The total amount of expended funding cut by the federal government is $717,064, the full amount of the Delran district’s late liquidation application.
“Delran Township School District received approval from the NJDOE and USDOE to utilize these federal funds for specific capital projects that have been completed and paid for by our district,” Della Vecchia said. “Since Delran followed the process as outlined by the NJDOE and adhered to all state and federal guidelines, the district is entitled to reimbursement for these completed and paid-for projects that allowed much needed improvements to our school facilities to ensure the safety, health and well-being of our students and staff.”
Additional questions:
● Are any of the projects funded through these monies incomplete?
No. All projects were substantially completed by last September at the middle and
high school.
● Will taxes go up specifically because of the funding cut for these projects?
No. Federal grants are not part of the tax levy. The district will continue to request reimbursement.
● Will there be budget or staffing cuts because reimbursement for these projects was cut?
No. The district has managed and spent the money as outlined by the NJDOE and USDOE, and will address the reimbursement shortfall in a fiscally responsible manner. If necessary, funding would be covered by capital reserve, but the district will not do that until it has exhausted every opportunity to receive the previously approved reimbursement.
● Is this unspent grant money?
No. The funds have been fully expended.
● What projects were paid with these funds?
The projects not yet fully reimbursed for include the HVAC upgrades at the middle and high schools.
