the state's bleak economic forecast, the district changed its
projections, the district is assuming it will receive no state aid
increase next year or the following year. In fact, it will likely
receive less state money next year than this year. This is due to the
loss of one-time aid allocated to districts this year to help offset
inflation plus revenue loss due to declining enrollment.
It appears the district will face a budget deficit of $18.5 million
next year. The board plans to cut $15 million in programs and services
to offset that loss. The remaining $3.5 million of the deficit will be
covered by the district's projected fund balance. As a result, the fund
balance will fall to just over 1 percent of annual expenditures, which
is considerably less than the board's goal of maintaining a five
percent fund balance.