The district will eliminate two full-time positions and reduce another from full time to part time. All of the positions are classified and based in the district office. The layoffs and reduction will be effective June 30.

Los Gatos­Saratoga Union High School District board members on Feb. 4 approved the resolution, titled, "Reduction of Classified Service for Lack of Work or Lack of Funds." In the resolution, one account technician and one systems analyst will be laid off, and a staff secretary will work half time.

That decision will be followed by more drastic cuts, such as staff reductions at the individual high schools and program cuts, to be voted on at the March 4 board of trustees meeting.

While no specific actions have been taken thus far, the principals of both Los Gatos and Saratoga high schools acknowledged that changes will have to be made in order to meet their budget reduction goals.

At Los Gatos High School, Principal Trudy McCulloch called a faculty meeting on Feb. 3 and discussed the potential effects of the financial crunch on the school.

McCulloch said she talked about the possibility of reducing the staff by seven teaching positions, some of which could be eliminated by retirement or other attrition measures.

"We're still at the stage where we're taking the first look at it," McCulloch said. "This is so preliminary that the last thing I want to do is cause panic."

Other money-saving measures to be considered by Los Gatos High administrators would involve shifting the costs of activities and "creative" funding.

Extracurricular activities have not been targeted for reduction "other than giving the costs of activities back to the school," McCulloch said. While the district currently pays for a large portion of the athletic coaches' salaries, the school—and parents and students—could take on more of the burden.

"There's been no discussion of athletics other than that," McCulloch said.

Additionally, school staff is examining other funding sources, such as applying for block grants to pay for school supplies.

McCulloch said Los Gatos High started to cut down on spending more than a year ago by "being more conscientious about what we're doing." Teachers were encouraged, and are still encouraged, to reduce utilities costs by turning off lights and computers whenever not in use and conserving paper when making copies.

"We've looked at all sorts of options over the months," McCulloch said about cutting costs. "Again, this could all change. It could get worse and it could get better."

Saratoga High School Principal Kevin Skelly said he is scheduled to make program cuts, drop teaching sections and make staff reductions. "I have to look at my staffing and figure out where I can afford to make some small cuts," Skelly said.

But Skelly did not name which measures he is considering, except to say, "We're going to have to make decisions soon."

Cost-cutting measures must be presented to the board by March 4 in order to notify certain employees by March 15, as required by law, that their jobs are in jeopardy.

On Feb. 4, the board of trustees also approved a criteria to determine order of seniority for certified employees. The criteria will be used in discerning which staff members to lay off and which to retain.

The teachers, however, are not willing to go down without a fight. Saratoga High teacher Mike Boitz, president of the District Teachers Association, asked to meet with the board and school officials before the March 4 board meeting to discuss alternatives to cutting positions.

Boitz, representing the more than 25 teachers in the audience, requested an "addendum" to the district's preliminary proposal, which includes the elimination of 5.6 certified teaching positions, Boitz said. The association will work on its alternative proposal and present it at a special meeting with the board on Feb. 26.

According to Bob Peterson, the district's chief business officer, the majority of the $1.6 million shortfall comes from "assessed valuation growth," or previously assessed property tax revenues. An additional $200,000 deficit stems from the loss of interest ordinarily earned from property tax revenues.

The Feb. 4 staffing decision cuts "in excess of $100,000" from the budget, Peterson said.

As substantial as the $1.6 million figure is, however, the district may be faced with a total of $6.6 million in reductions with Gov. Gray Davis' proposed budget. The potential cuts, of three types, add up to another $5 million, said Superintendent Cindy Ranii.

Ranii said the most timely concern is a midyear 2.15 percent revenue limit repayment, in which the district would lose $350,000 for this fiscal year.

Next, the approximately $350,000 the state gives to the district in basic aid funds would be taken away. "If basic aid should ever be challenged, and if it were eliminated, it would be a precipice to challenge all the schools in our community," Ranii said.

In addition, Davis proposes to withhold the "excess local property tax" for basic aid schools, resulting in a shortfall for the Los Gatos­Saratoga district of about $4.2 million.

"We're looking at a potential of a $5 million cut out of a $25 million budget. That would be drastic and dramatic and devastating," Ranii said. "But the state does have a dramatic budget challenge. I think that's a reality."

Ranii said she is pursuing adding a parcel tax to November's ballot, which could raise $3 or $4 million.

"People move into the community because of the quality of the schools. I'm not about to sit back and watch those programs be destroyed," Ranii said.

Ranii urges students, parents and other community members to write letters to and call—not email—their state senators and state assembly members. "I think the time to send a message out is right now," Ranii said. For a list of contact names and information, call the district office at 408.354.2520.

A budget advisory committee meeting is scheduled for Feb. 12 at 3:30 p.m. to hash out budget cuts for the 2003-04 school year before the board looks at the preliminary budget on March 4. The committee meeting will take place at the district office, 17421 Farley Road West, in Los Gatos.