The school board met for the fifth time this month to discuss budget options both for the 2012-2013 school year and going forward.
The school board has already cut $2.5 million from the fiscal year 2013 budget due to austerity cuts.
Director of Finances Alan Melson stated the board needed a fund balance of between $3 and $4 million to avoid going into debt. The budget currently has a fund balance of $1.3 million assuming the board made no more cuts or approved a millage rate increase, Melson said.
"Where we're at right now you could get through FY 2013," Melson said to the board during his presentation. "However, barring some major funds we would face $4 million in cuts next year just to get back to a $3 million fund balance."
Melson listed an upcoming $460,000 increase in health insurance costs as well as step raises as reasons the budget will have to be reduced further next year.
Board member Tara O'Neal asked what it would take to get the fund balance up to $3 million.
"You would have to raise the tax rate by 3 mils and eliminate 20 positions, that's just not feasible," Melson said
Other discussion included revisiting personnel cuts that Williams had earlier recommended to the board, the four day week and increasing the millage rate.
Williams said the board could always revisit those options but he felt the time frame to cut those positions or revisit the four day week for the upcoming school year had passed.
"These people have signed contracts and are on summer vacation now," William said "I don't think it would be appropriate to cut those positions."
Williams said he plans to begin looking at every single position within the school district in August to determine which ones could be altered or eliminated in the FY2014 budget.
"We will have to look at personnel for next year's budget," Williams said. "It's not palatable and no one likes it but we have no choice. Personnel make up 86 percent of our budget."
Williams said he was also not in favor of a millage increase, but that it was the board's decision on whether to approve one.
No decisions or cuts were made during the meeting, but four potential options are still being explored.
Williams and Melson said they were not ready to make recommendations to the board on these options during the meeting. Williams plans to present his findings on the potential cost savings during the July 10 board meeting.