LegislatorsPage 2June 7, 2013
meeting payroll and making utility payments
if they do not receive their Julyapportionment payment from the state.OSPI makes payment to schools on or before the last business day of the month (RCW28A.510.250). School districts receive ten percent of their annual apportionmentpayments in both July and August. The monthly apportionment payment to schooldistricts is anticipated to be $517M. OSPI staff will need at least 10 days to prepare allthe documentation to send out the payments.Without a clear date for state budget enactment, the length of disruption in cash flow for
school districts is undefined. This uncertainty affects districts’ capacity to plan and
adapt. School buildings may be shut down, since utility payments cannot be paid.Summer maintenance projects already contracted are at risk for nonpayment.
Child Nutrition Funding
The Child and Adult Care Food Program (CACFP) provides federal funds to
575nonresidential child care providers
to serve nutritious meals and snacks to low-
income children, but we can’t disburse these funds without budgetary author
ity. Withoutappropriation authority, OSPI will not be able to pass-through the July payments of
$2.4M to child care providers and $1.4M to day care homes.
These providers do
not have the means to provide these meals without the state’s assistance.
State Construction Funding for School District FacilitiesThirty-six school districts
receiving state construction funding could face a projected
shortfall of $36M
for construction projects already underway.
School districts mustexhaust their local share of the construction costs before state reimbursements begins.Without the state reimbursements, school districts will experience a financial hardshipfor contracts already executed. Additionally, OSPI will not grant school constructionassistance commitments in July. Without this commitment, some school districts willnot be able to send their projects out to bid causing delays with the potential of additional costs and missed opportunities in the summer construction window.Funds from the common school construction account pay the debt service for the schoolconstruction and skill center bonds. A transfer is expected on the first of July and August. Staff to make these transfers is needed to ensure the state does not default onthese bonds.
School District Budget Adoption & Employee Contracts
Local school districts are required in statute (28A.505 RCW) to complete a budget byJuly 10
of each year. OSPI has the authority to extend this date, if the state has notapproved an operating budget by June 1
. However, first-class
school districts stillmust adopt a budget by August 31
, and second-class school districts must