The Duluth School District may be forced to cut costs this month to solve an unexpected budget crisis.
Revenue for the district this year is projected to be about $1.1 million less than budgeted. A news release from the district said the "district is addressing the prospect of making a mid-year financial correction to reduce expenses."
The district has been affected by reduced levels of state funding, student enrollment and the withholding of 30 percent of payments to the district by the state to deal with its own deficit. That, said district spokeswoman Katie Kaufman, results in a cash flow issue that leads to short-term borrowing.
The district is working with its Quality Steering Committee to make reduction recommendations, and the issue will be discussed with the School Board at the Monday business committee meeting.
"Expenses at all levels of the organization, including district administration, are being reviewed," the release said.
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The district has about 160 fewer students than expected this year, Kaufman said.
While some areas, like kindergarten, have increased enrollment, other areas have decreased.
"The main problem has been caused once again by the state ... underfunding education," Wanner said. "And it comes back and affects people in Duluth."
