As the state legislature continues to hammer out a finalized budget, school districts across the state were informed their June funding would be $7.6 million less than promised by apportionment. But Sumner School District staff will continue to be paid on time, according to a letter from acting superintendent Craig Spencer that was sent to employees Wednesday.

Spencer writes that employee payroll, benefits and goods and services payments will be paid out of a district reserve account within the general fund — throughout the summer or until the legislature commits to a budget, if necessary. Money from the Ending Fund Balance account may be spent on unexpected one-time expenditures and to make up the difference on state or federal funding shortfalls.

“It is important our staff knows that in the long term, District finances are sound and there are available reserve funds in the short term,” Spencer wrote. “Please know that payroll has been ordered and there should not be any disruption in receiving your pay warrant.”

Spencer has led Sumner School District as interim superintendent since June 2011. He will step down from the acting superintendency and return to his position as assistant superintendent on Monday, when Sara Johnson takes over the reins as chief executive of Sumner School District. The district’s board of directors voted Feb. 27 to hire Johnson, formerly the assistant superintendent of the Lincoln County School District in Oregon.

The Courier-Herald will follow this story as it develops. The full text of Spencer’s letter is below.

As the Sumner School District awaits action from the Legislature on school funding, District budget development for 2013-14 school year continues.

Since the Legislature has yet to finalize a state budget, this week all school districts were notified that June funding would be $7.6 million less than was promised through apportionment. Without an approved 2013-14 supplemental budget OSPI does not have the funds or the authority to issue the full amount of state funding due to districts. Locally all school districts will need to determine if they have the resources to mitigate the shortfall.

The Sumner School District has a contingency plan to ensure financial obligations to our staff are met.  Employee payroll, benefits and payments for goods and services will paid on time by using some of our Ending Fund Balance within the General Fund. If necessary, we will continue to use the money from the fund balance throughout the summer or until a state budget is finalized.

The Ending Fund Balance is a reserve account, which may be spent on unexpected or unanticipated one-time expenditures and in the event of a reduction in state or federal funding.  The current state budget crisis in the extended Legislative session is certainly unexpected and has resulted in a reduction in funding.

Despite media reports of pink slips to state employees and other potential government shutdowns, it is important our staff knows that in the long term District finances are sound and there are available reserve funds in the short term.  Please know that payroll has been ordered and there should not be any disruption in receiving your pay warrant.