Finance staff gave the board a high‑level summary of the department’s FY22 operating budget and drew attention to one new state appropriation: a $3 million discretionary line intended for unmet capital or emergency needs in school systems.

Staff said the operating budget’s personnel costs rose primarily because of a legislated or negotiated 2% pay raise and step increases, as well as increased payouts for accumulated leave when employees separate. Finance staff explained some recent staffing growth is funded through federal relief and ESSER reserves and that several positions are temporary or retirees re‑employed to administer pandemic‑related funds.

The department noted an approximately $3 million line item in the operating appropriation that the legislature structured as discretionary support for unmet needs; staff said the board will create an application and award process rather than distribute the funds at legislators’ direction. Staff cautioned the appropriation included caps per district and that total demand will likely exceed the line, so staff expect to design an application that provides targeted awards rather than an automatic allocation to every district.

Finance staff also reviewed line‑item expectations for rent, contracts, travel and software costs, and explained that much of the department’s recent staffing and program expansion has been supported by federal funds that will sunset in coming years, creating implementation and sustainability considerations the board will need to address in future budget cycles.

Board members asked staff for a digital copy of the condensed budget and for follow‑up information on staffing counts and how temporary federal positions will be transitioned or absorbed after federal funding expires.