It’s not as bad as it could be, but the Orcas School budget for 2009-10 is looking grim.

Last year, the district received $212,000 from the state’s I-728 funding. For the coming year, it has been reduced to around $60,000.

“It would have been a lot worse without the addition of stimulus money,” Business Manager Ben Thomas said.

Local tax and non-tax revenue (private donations) are also down and employee costs are going up because of required raises. As a result, the school is looking at a $500,000 shortfall.

During a May 4 special meeting, the board approved a Minimum Education Plan for the district, which is required by the state. It must show how the school will not run in the red with the impending cuts. The plan calls for the elimination of eight teaching positions.

But school board members say this is just the first step in a long budgeting process, and every effort will be made to keep as many staff positions as possible.

The eight teachers will receive letters by May 15 notifying them of their impending cut, but they could be reinstated by the fall.

“As it is now, it is horrible,” board chair Janet Brownell said. “But we’re committed to bringing teachers back.”

Board member Tony Ghazel expressed his discomfort over the potential cuts.

“We want the staff to know that we regret this,” he said. “We’re trying to do everything we can to make this work.”

The school will crunch budget numbers from now until July. The next meeting with the board and the Budget Advisory Committee is on Thursday, May 14, at 5 p.m. in the school library.

“This not a workable program,” Superintendent Barbara Kline said. “We clearly have to hunt for money.”