SCHOOL BUDGET IN WORKS

Members of the Cameron County Area Board of Education continue work on the school district's 2008-09 operating budget.

The document must be approved in May and will take effect on July 1.

Directors are coming to terms with rising costs that would result in a budget deficit of about $670,000 if the current real estate tax rate remain unchanged for 2008-09.

A state subsidy of almost $7 million is expected, with district revenue pegged at $3.74 million. Expenditures in the budget's first draft are $11,453,000.

Another factor on the table is the school district's "fund balance," now at $2.5 million, which could be carried into the new school year or tapped to cover a portion of the forecasted income shortfall.

Much of the higher expenditure forecast for 2008-09 is due to an increase of $275,000 for instruction costs, as well as $160,000 more in support services.

School board members and the administration will

continue to work on the budget in the coming weeks, considering spending cuts or increased taxes.