Operating revenues are expected to come in at approximately $13.4 million, while expenditures are estimated at $13.7 million. At this time, the district has fund balances of 24 percent, approximately $3 million in reserves, some of which will be used to balance the budget. At the end of the 2009-10 year, fund balances are expected to be 19.61 percent. The school board voted 5-0 to approve the budget at a special meeting held Monday night. Board member Gina Allen was absent. The budget went into effect July 1. "It's important for people to know that the district has had high fund balances in the past," Superintendent Dr. Chris Gaines said. "There was a desire to spend that down, but now we have reached a point where that is at an end," Gaines said. "Unfortunately, we've reached a point where we have to stop spending down right when (Wright City East Elementary) is coming online, which significantly increases district operating expenses." One of the district's goals, as set by the board, is to maintain operating balances between 18-21 percent, Gaines said. The current economic downturn is not helping matters either. Unlike other administrators in the area, Gaines is skeptical about state funding for this year. Although the Missouri Legislature has voted to funnel large amounts of stimulus funds into education, Gaines sees some disruption of state funding as inevitable. "We take a conservative approach because we take a huge portion of general revenue (approximately $4.1 million) from the state," Gaines said. "Although the state has said K-12 education will be last in line for cuts, education is also the largest part of the state budget." The district's budget includes capital expenditures of approximately $5.2 million this year. In the spring, voters approved a bond issue for air conditioning, kitchen equipment, technology purchases and renovation of athletic fields. At this time, the district holds $2.7 million in bond money to be used for those expenses, with another $800,000 in bonds yet to sell. One capital project will include the completion of the new elementary school. A large part of the June 29 special meeting was devoted to goal setting for the upcoming year. One major board objective is to "engage the community in district financial planning." As Board President Austin Jones explained, "we can sit here and make decisions, or we can gain insight from the community and involve them in the process." Board membere Melissa Springmeyer agreed. "They need to know where we're at, what we need, and how to get there," she said. At some point, ending deficit spending will mean either increasing the tax levy or a reduction in services, officials said. "We need to give the community information so that they can make a decision," Springmeyer said. Board members indicated a series of public meetings might be scheduled during the school year to address these issues with the public.