ASBO International provided the below update to school business officials this week. We appreciate all ASBO International does to advocate for us and all SBO’s in Washington, D.C.
In response to the collective advocacy efforts of AASA, ASBO International, and other national education organizations asking the US Department of Education (USED) to extend the spend timeline for ESSER funds, we have some exciting news to share.
On Friday May 13, USED sent a letter responding to our request indicating that while they cannot change the obligation deadline for ESSER funds, they can and will allow flexibility for liquidating funds beyond the programs' original deadlines.
Original Deadlines (including Tydings Amendment):
ESSER I – Funds must be obligated by September 2022
ESSER II – Funds must be obligated by September 2023
ESSER III – Funds must be obligated by September 2024
*All funds must be liquidated within 4 months (120 days) after the obligation deadlines
New Deadlines, per USED's May 13 Late Liquidation letter:
ESSER I – Funds must be obligated by September 2022
ESSER II – Funds must be obligated by September 2023
ESSER III – Funds must be obligated by September 2024
*Districts can work with their state to apply to USED for a "late liquidation" extension, that if approved by USED, can provide districts 18 months after the obligation deadlines (or more if there are extenuating circumstances) to liquidate funds.
USED indicated in an Education Week interview that when the agency is considering applications to extend ESSER liquidation deadlines, it will "prioritize school construction projects" first, and any other applications for other spending purposes "would be considered only for extenuating circumstances."
If a district/state application can demonstrate extenuating circumstances, and their application is approved by the state and USED, it is possible that the late liquidation flexibility can be applied to other contracts with third-party providers such as tutoring, mental health support, curriculum materials, professional development, technology tools, substitute teachers, etc. While contracts must be signed and funds obligated by their original ESSER deadlines, there is some limited flexibility to spend down/liquidate funds over a longer time.
USED will provide more information on how districts and states can apply for the flexibility, but this announcement may be reassuring for districts that are debating whether to carry out facility projects specifically, because of spend deadline concerns.
ASBO International hopes that this flexibility will help districts spend more sustainably to address immediate and longer-term student needs; and allow districts more time to carry out HVAC/facility projects as they deal with supply chain issues, project delays, and high competition for contractors. We are very grateful to USED for working with states and districts on ESSER spending challenges and appreciate any flexibility they can provide within their scope of authority.
We encourage members who are interested in exploring this opportunity for their districts to start engaging in conversations with their state, vendors/contractors, and auditors to ensure all parties are aware of this announcement and any circumstances in which a district can take advantage of this flexibility when procuring good/services or carrying out projects beyond the original ESSER spend deadlines.