LAKEVIEW SCHOOLS Officials ponder how to deal with shortfall

The district anticipated losing $100,000 this year because of Kmart's financial problems.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
CORTLAND -- Lakeview school officials are trying to determine the best strategy to cope with a budget that's $400,000 less.
The loss is caused by the bankruptcy filing of Kmart. The company has a large distribution warehouse in Bazetta, which is part of Lakeview School District and pays property taxes to the district.
"We have no idea if and when we'll get that money," said Treasurer Milton Williams.
Superintendent Matthew Chojnacki said the district started taking "austere" budget measures about two months ago to keep costs in check.
"We told our principals, 'Don't send us any purchase orders unless it's absolutely necessary for the operation of the school district,'" he said.
District officials hope that, combined with possible windfalls, is enough to get through the end of the fiscal year.
Both Chojnacki and Williams said the district anticipated a loss of about $100,000 this fiscal year because of the Kmart difficulties and structured the budget accordingly.
Raising funds
"Both the treasurer and I have talked to board members, and we're seeking ways to increase revenue," the superintendent said. "Most of those alternatives involve additional tax levies. The board has been understandably reluctant to do that."
The two latest levies were emergency five-year renewals. The board could opt for a permanent levy or try for a replacement levy.
"We're considering what we're going to do," Chojnacki said. "No decisions have been made yet."
The state already has looked at the district's financial forecast and notified officials of their concern, he said.
"We've projected a red balance for next fiscal year," Chojnacki said.
The state could declare the district in fiscal watch.
"After the first of the year, we're expecting to hear something from them," the superintendent said.