IRVINE

Irvine Unified School District trustees Thursday bought out the contract of a top official who has been with the district for 27 years, putting to rest a dispute generated during the budget crisis.

Months of negotiations came to an end when Paul H. Reed, the deputy superintendent for business services, agreed to resign.

Reed, 52, who started working for the district in 1973, has been on sick leave since Feb. 14. On Feb. 16, board members adopted a plan to restructure the district’s administration.

The deal gives Reed about $145,600--a year’s salary plus 46 days of vacation time--and was effective immediately.

Relations between Reed and the board began to deteriorate when the restructuring plan was released by a financial consultant in January. At the time, the district was trying to figure out how to fix a $4-million budget deficit. An influx of state funds has since resolved the fiscal crisis.