Declining student enrollment numbers and mandatory pay raises for district employees have created a “perfect storm” for budget woes, Longview school district officials say.

The district’s budget will be $2.4 million short in 2008-09, district officials say. The general fund is $70 million, a $4.4 million increase over last year.

To make up for the $2.4 million gap, the district will use about $600,000 in savings, dropping the reserve fund from 4.65 to 4.56 percent and will be cutting or not filling some positions.

“Anytime we spend out of fund balance, it gets my attention. You can only spend it once,” finance director Dennis Hilberg said. “Six-hundred thousand dollars will come back as a deficit, only it will be larger next time.”

Hilberg said he will “review expense as we move into new year to see if we can’t work that $600,000.” The board’s goal for the reserve is 5 percent of the general fund.

Though no staff has been laid off, the district office has cut two positions including the position of the deputy superintendent. In schools, eight staff and six teaching positions have been eliminated through retirement and attrition.

Teaching positions will be filled if enrollment warrants additional staff members, Hilberg said.

The district will lose $500,000 in funds if enrollment drops by 100 students in the fall as predicted, district officials say.

The climbing cost of fuel will cost the district another $100,000 this year, Hilberg said.

But mandatory pay raises for non-state employees is “a significant portion of the $2.4 million gap,” Hilberg said.

“The Legislature approved a significant cost-of-living expense from 5.1 to 5.7 percent,” he said.

Districts must offer the same raise to staff paid out of federal and levy dollars, including employer contributions pension plans which have increased from 28 to 45 percent, Hilberg said.

Cuts also have been made in the budgets for technology, transportation, maintenance and supplies.

The district has cut eight assistant coaching positions for next school year. “We’re watching participation. If numbers are really high we’re going to adjust for it,” human resources director John Vencill said.

The cost of school lunches will increase by 20 cents next school year. The board has approved two 10-cent raises since June, bringing the cost of school lunches to $1.70 at elementary schools and $2 at high schools.