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for the school district as last year. Second, the Board of Education needs to be willing to <br />accept the administration's recommendation to be less conservative in its budgeting practices <br />by reducing the utility budget and projected salary expenditures by two percent. Third, the <br />Board must support the use of additional fund balance to avoid eliminating current <br />programming and staffing. There is a danger in this because it is not normally advisable to <br />use fund balance for ongoing expenditures; however, there will still be fund balance that <br />could be used in 2012 -13 and, hopefully, financial conditions will be turning around within <br />two years. In the event that further reductions must be made, the administration has <br />presented the Board of Education with a prioritized list to use once the state budget is <br />finalized. <br />Respectfully submitted, <br />Neil G. Pedersen <br />Superintendent <br />Revised <br />4/7/11 <br />1 -6 <br />