Washtenaw County school districts aren’t in a full-fledged panic over the lack of a state budget for school funding, but officials say their level of concern is rising.

Soon, the lack of a budget for this year could impact the money districts receive from the state.

Unlike other state budgets, the state Legislature hasn’t even passed a continuation budget to even keep last year’s funding in place. Legislators are debating a $218 cut in per pupil aid to school districts and can’t come to an agreement.

The lack of a budget prompted the state’s Department of Education to issue a warning Monday that all federal funds that flow from the state to local districts have been cut off, pending the adoption of a budget.

That could have a huge effect on Washtenaw County's schools. Federal funds pay for a variety of special programs, including reduced and free lunch, Title I programs targeted at poor students and some special education money.

Local districts front the money for those expenses and bill the state for reimbursement, said Brian Marcel, the Washtenaw Intermediate School District’s assistant superintendent for business service.

Any bills submitted after Oct. 1 won’t be reimbursed until there’s a budget, the state said in a press release.

“This will deeply affect the cash flow for schools, day care centers, and adult care facilities, to name a few,” state Superintendent of Public Instruction Mike Flanagan said. “But I am confident that the Legislature will do the right thing and pass at least a continuation budget this week and allow us to start passing through these federal dollars.”

The department processes federal payments for the U.S. Department of Education and U.S. Department of Agriculture three times a week. Over a normal two-week period, the department processes approximately $43 million in payments.

That’s a big chunk of school district’s operations.

For example, in Ypsilanti, 8.9 percent of the district’s staff is funded with federal dollars, district spokeswoman Emma Jackson said.

Jackson said district officials aren't in full panic, but are upset they're being placed in limbo.

If the state can’t come up with a school aid budget soon, things could get a lot worse.

That’s because state aid payments are due soon to local school districts. Not receiving those could force districts to borrow money to make payrolls and pay vendors.

David Jesse covers K-12 education for AnnArbor.com. He can be reached at davidjesse@annarbor.com or at 734-623-2534.