At the Nov. 20 school board meeting, Gaines reported the district has seen its overall spending deficit balloon to $353,376. It previously was $319,375. Gaines told board members the expanding deficit is mainly due to an increase in more employees opting for health insurance through the district and a reduction in revenue. "We have to change our mindset now to be more mindful if this is something we need or just want," he told The Record. The district had projected expenditures to be $25,243,297 in the 2008-09 budget, but those figures have since risen to $25,697,344. Revenues, meanwhile, have seen a slight increase. The early forecast had the district bringing in $14,800,422, but new projections have bumped up overall revenues to $14,959,764. Gaines is optimistic school officials can find ways to save money in next year's budget. "You pay close attention to what you're spending and where you're spending it," he said. "Over time you have to close the gap. You got to get it back in the black. You look at little places to save you money because that new (elementary) building is going to cost you a new chunk." The anticipated cost to open the new school for the 2009-10 school year is at least $400,000. When planning the budget, Gaines explained the district must insert estimated figures for assessed valuation, tax rate and the sales tax revenue. At this time of the year, the numbers become clearer which resulted in the district having to amend the budget at its meeting two weeks ago. Most of the amendments switched money from one budget item to another. The school board unanimously approved the amendments by a 7-0 vote. Gaines said there is a concern among school officials throughout the state regarding whether the spiraling economy will keep district patrons from paying their taxes. "All that money can get held up," he said. While the district will be looking at ways to cut costs from the 2009-10 budget, the shortfall should not include job losses for teachers, Gaines explained. He said the district must keep five teachers per grade level for kindergarten through sixth grade due to rigid state regulations involving class sizes. But in the upper levels, from seventh to 12th grade, should a teacher leave for another job or retire, the district could decide to eliminate the position to help cut costs. That, however, is an option Gaines wants to stay away from. "We should be pretty good for the short term," he acknowledged.