Auburn School District officials anticipate a small decrease in the ending fund balance for their 2016-17 operating budget.

The recently released budget shows an ending fund balance of about $6.528 million for the 2015-16 school year.

That number is expected to decrease by more than $234,000 at the end of the upcoming school year. But Cindi Blansfield, the district’s assistant superintendent for business and operations, said the fund balance still meets the school board’s target, which is to save 3-6 percent of ASD’s expenditures.

Blansfield said the district was awarded a “Race to the Top” grant several years ago. According to the U.S. Department of Education’s website, in 2010 the program was designed “to reward states that are leading the way in comprehensive, coherent, statewide education reform across four key areas.”

Those include: developing standards and assessments that prepare students for future success; building data systems that enhance student achievement, and informing teachers and principals about ways to improve; recruiting, developing, rewarding and retaining effective teachers and principals; and fixing their lowest-performing schools.

Blansfield said that grant was used as “startup money” to develop a teacher leadership academy, college and career readiness programs, pre-kindergarten support and other projects. But Blansfield said that grant will only provide $223,000 this year – about $1 million less than its peak. She said that was part of the reason behind the increase of expenditures to a projection of more than $209.7 million for the upcoming school year. That is more than a $14.5 million increase from 2015-16.

“We have a plan for sustainability once those grant funds go anyway,” said Blansfield, referring to the Race to the Top grant that is scheduled to end after the 2016-17 school year. “That’s part of the reason you see an increase in general fund expenditures.”

Resources, which include the fund balance, are expected to increase from about $202 million to a little more than $216 million at the end of the upcoming school year.

Blansfield said ASD officials continue to grapple with how the McCleary lawsuit will affect funding from the state. Per the Washington State Constitution, education is considered the state’s “paramount” duty, and the Legislature is required to make “ample” provisions for its funding. In January 2012, the Washington State Supreme Court ruled that the Legislature was not doing enough in that regard. The McCleary family of Jefferson County started that lawsuit in 2009, and several school districts in the state, including Auburn, joined. The state Supreme Court directs lawmakers to amply fund basic education by 2018. But Blansfield noted that basic education, as defined in the state constitution, does not fund activities and athletics.

“You still have those important things that keep kids connected and engaged in school,” she said. “Athletics and activities are great examples.”

And that could present a problem for ASD in the future. Last month, state Superintendent Randy Dorn filed a lawsuit against Washington’s seven largest school districts – Auburn was not among them – through the King County court system to stop them from using money generated from levies to pay teachers’ salaries, which he views as unconstitutional.

Blansfield said the district’s maintenance-and-operations levy represents 25 percent of its budget.

“It’s a little nerve-racking,” she said. “Because districts are not fully funded by the state, we are dependent on our levy funds.”