LANGLEY — The South Whidbey School District is facing reduced revenues next year as enrollment declines.

The solution is deceptively simple — cut back wherever possible without negatively impacting essential programs.

Easier said than done, though.

At 6:30 p.m. tonight, the district is expected to approve the 2008-2009 budget after examining ways to balance revenues and expenses without hurting the primary mission of education.

Incoming revenues will be $373,000 below the previous year; expenses are down as well, by $368,700.

“School districts are struggling all over the state, trying to deal with enrollment questions,” said School District Superintendent Fred McCarthy.

There are other factors, too, notably the rise in fuel prices.

District transportation director Veronica Schmidt paid an average of $2.56 for a gallon of diesel two years ago.

Last week she got her first delivery for the new school year at $4.67 per gallon.

“It’s a real problem, as you can imagine,” Schmidt said. “However, as fuel goes up and we have more kids riding the buses, that helps to offset the increase.”

At the end of the school year in June, there were 1,807 students enrolled in South End public schools.

From September 2008 to June 2009, officials project a total of 1,729, or 78 less children in local classrooms. The state provides $5,100 per student, so that means a drop in revenue of $397,800 in just one year for South Whidbey.

State funding provides 71.2 percent of school funding. Local tax dollars provide

22.8 percent while the federal government adds 5.7 percent.

The district is responding to the crisis in several ways.

Salaries and benefits represent a whopping 83 percent of school expenses.

“We are reducing staffing consistent with enrollment but in such a way as to minimize the impact on students and programs,” McCarthy said. “We must maintain the high level of quality instruction that parents expect.”

Earlier this year, eight reduction-in-force letters were sent to teachers at the low end of the seniority pole. Attrition — from retirements and people moving away — has allowed the district to withdraw all the letters.

The net result has been a voluntary loss of five teachers and seven classified employees.

Though it will take some time, the district has already begun plans to vacate the Primary School by consolidating grades kindergarten through the fifth grade at the Elementary School next door. In the future, officials hope to lease vacant classrooms to other community groups to generate revenue.

McCarthy said some districts have targeted bus routes and sports programs but South Whidbey isn’t going there.

The school district may change, but not reduce, bus routes to be as prudent as possible and it isn’t raising already high sports fees, despite climbing costs for both.

That doesn’t mean officials won’t look at the possibilities. A state-funded study by the University of Washington and Island Transit is under way to see if alternate solutions to the skyrocketing price of fuel can be found.

At South Whidbey High School, Falcon sports programs alone feature as many as 275 athletes turning out for 15 separate sports during the nine-month school year.

In May 2007, the school board approved a measure increasing student activity fees to $50 per student, or $100 per year. It was the first such increase since the early 1990s.

However, costs are rising, and the school needs to purchase a new sound system for Waterman Field, more specialized dirt for the soccer and football fields and upgraded equipment.

Compounding the district’s problems is the money from Initiative 728.

In November 2000, Washington state voters approved the measure by nearly 72 percent. Under the initiative, school districts are authorized to use funds to reduce class size, offer extended learning opportunities, provide additional professional development for educators and give early assistance for children who need pre-kindergarten support.

While the state has increased the amount of money per student under the provisions of I-728, reduced enrollment means the actual dollars are lower this year.

Projected revenue to the district will drop in 2009 to $844,736 from the $871,650 that was received in 2008 because of lower enrollment.

“Staying on top of all these factors is an important job for all of us at the district office,” McCarthy said. “But we will never lose sight of our number one mission, providing a world-class education for these students.”

Jeff VanDerford can be reached at 221-5300 or jvanderford@southwhidbey

record.com.