The Warren County R-III School District recently approved its tentative budget for the 2025-26 fiscal year and reviewed its federal program fund balances. 

Most notably, the district is experiencing changes in federal funding due to budget cuts approved under President Donald Trump’s administration. The most direct impact comes from a freeze on Title II funding.

Title II, which supports teacher and principal training and recruitment, aims to boost student achievement by providing professional development and improving educational access for minority and low-income students. 

While the district’s Title II funds have been frozen, it has not been officially rescinded. It remains unclear if the district will receive any money from this federal program, according to district officials. 

The frozen funds are not expected to have a direct impact for this fiscal year in terms of services, but future years could be affected if funding continues to go down from the federal level, R-III Superintendent Gregg Klinginsmith said. 

“It’s definitely not good anytime you lose revenue that impacts programs you can offer to students, but we have nice fund balances and we’re able to weather the storm for this,” he said. “It won’t impact anything this year because we have done a good job of building reserves for situations like this.” 

In the 2024-25 fiscal year, R-III received $95,635 in Title II funding, which was used to pay for a literacy coach and professional development initiatives. In the new fiscal year ending June 30, 2026, the district has allocated funds to pay for the literacy coach.  

Title I.A. funding, which helps ensure all students receive a fair and equitable education, also saw a reduction. The district had typically received roughly $600,000 annually through Title I.A. However, last year’s funding decrease led to the loss of two instructional support professionals (ISPs). This year, the district faces an additional reduction of nearly $90,000.

Currently, Daniel Boone and Warrior Ridge Elementary each have two ISPs, while Rebecca Boone Elementary has three. ISPs help students that face learning challenges or are performing below grade level. 

Due to the decrease, the district will transfer all funds from Title IV to Title I.A. to maintain those services. Title IV expenditures will instead be covered using district reserves. 

The district uses Title IV to purchase Canvas – a learning management system, which costs roughly $22,000. For the current fiscal year, the district received $44,244 in Title IV funding before reallocating it to support Title I.A. 

The board also approved its tentative 2025-26 budget on June 26, prior to the federal funding changes. The district projects $52.8 million in revenue and $73.5 million in expenses, with an ending fund balance of 35%. 

The projected deficit is largely due to the construction of a new elementary school. School officials noted most of the bond money was received in the previous fiscal year, while most of the construction expenses will occur this year. 

Specifically, the district received $30 million in bond funds last year, but hardly any of that money was spent at the time. Expenses are expected to come this year, which will even out the cash flow over time. 

The majority of the cost of the new building will be spent this fiscal year out of the capital projects fund.

Additionally, salaries are budgeted to increase 4.27%, all hourly workers will receive a minimum base pay of $15 per hour and benefits will increase 10.39%.