Public school districts in Clallam County are facing a “big cloud” on the horizon as the state Legislature wrangles over the budget, education officials say.
School districts across the state — and in Clallam County — are facing the end of their fiscal year June 30, and they cannot complete 2013-2014 budgets by state-mandated deadlines because they don’t know how much money they will get from the state and don’t know if they will receive monthly apportionment payments for enrollment.
Political leaders were seeking to finalize a spending plan this weekend, just days before the new budget cycle begins July 1.
If there’s no budget deal reached by the end of the month, state leaders expect they would have to shut down much of state government.
“We are really scrambling to figure out, if there is a shutdown at the state level, what we will do,” said Diana Reaume, superintendent of the Quillayute Valley School District in Forks.
“Additionally, it is difficult to begin the budget process for 2013-2014. We’re starting by calling different school districts in the state [to see what they are doing],” she said.
Clallam County districts have enough cash in reserve to meet July payroll, Reaume said.
115 school districts
State Superintendent Randy Dorn of the state Office of the Superintendent of Public Instruction said 115 public school districts are expected to be unable to meet their financial obligations if they don’t receive their July payments from the state.
Dorn said three of those 115 school districts are on the North Olympic Peninsula: Port Townsend, Chimacum and Quilcene school districts in Jefferson County.
Most Clallam County schools will be able to pay employees, at least in July.
Until the state Legislature passes a budget, public school districts cannot spend funds for fiscal year 2013-2014 or receive state payments that fund many of their bills through the summer.
Lawmakers have been working on a budget solution since the beginning of the year, looking to mend a roughly $1 billion budget shortfall for the two-year cycle that ends in the middle of 2015.
They’ve also been looking to add another $1 billion to the state’s education system in response to an order from the state Supreme Court.
In 2010-2011, the state provided 64.4 percent of public school districts’ budgets, according to a 2012 Citizen’s Guide to K-12 Finance, prepared by state Senate Ways and Means and Early Learning and K-12 committees with the help of the Legislative Evaluation and Accountability Program Committee.
The report said local taxes provided 18.4 percent, federal money equaled 12.8 percent, and other revenue and reserves was 4.2 percent.
While legislators meet in the second special session of the year now, school district officials are trying to figure out where their budgets stand.
Port Angeles
Port Angeles School Board members said they were concerned the district was budgeting blind, with no assurance there will be a solid state budget to inform their own budget by their deadline of Aug. 1.
Board President Lonnie Linn has called the budget impasse a “big cloud” on the district’s horizon and said there was little chance the state Legislature would pass a budget before July 1.
“Their philosophies are so far apart, it’s unlikely they will reach an agreement,” Linn said of Republican and Democratic factions in Olympia.
Superintendent Jane Pryne said the district would put together several budgets, based on a range of state budget projections, and ask the board to approve one.
“We are going to be guessing right up to the very end,” Pryne said.
The district will be able to meet July payroll by borrowing from district reserves, she said, and added that she believes it’s unlikely that the standoff in Olympia will last long enough to affect the August payments.
Sequim
The Sequim School District is creating two budgets, one using the state Senate’s proposed budget and another with the state House budget, said Brian Lewis, business manager for the Sequim School District.
The district also is “slowing purchases” that aren’t directly health- and safety-related until after the June 30 legislative budget deadline, Lewis said.
Funding is available for June payroll and bills, and the district can cover July payroll using budget reserves — the district’s emergency savings account.
Lewis said he doesn’t expect the legislative quagmire to continue through August but added that if there’s no agreement by August, the Sequim School Board would have to vote to approve a “non-voted debt” and take a bank loan to cover payroll.
“They have already done the work; we are contractually obligated to pay,” he said.
Cape Flattery
Cape Flattery School District is in decent condition through the summer, said Superintendent Kandy Ritter.
The district can cover payroll through August, but if the state funding were delayed past September, the district would have to borrow from the reserve fund, Ritter said.
Ritter said her concern is not just whether they come to an agreement but whether the state may restructure payments to the schools.
Currently, the state pays schools once a month, based on monthly enrollment figures.
“If apportionment is every other month, it would impact how we do our budget,” she said.
Joyce
Crescent School District in Joyce is in good shape going into the summer because of years of conservative budgeting, said district business manager Marla Bell.
The district’s existing funds can keep the bills paid through August, Bell said.
Jefferson County
Quilcene School District has frozen all spending, including the ordering of classroom instructional material and essential summer maintenance, and will barely be able to meet July payroll by using the district’s reserve funds, while Brinnon may be able to hold on for an additional month, said Wally Lis, superintendent of both districts.
Port Townsend School District, the largest of the four districts in the county, will borrow from the capital projects fund to cover July expenses if a state budget isn’t passed, said Port Townsend Superintendent David Engle.
Chimacum School District officials could not be reached for comment.
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Reporter Arwyn Rice can be reached at 360-452-2345, ext. 5070, or at arwyn.rice@peninsuladailynews.com.
