The South Whidbey School District is at a real financial crossroads.

On Wednesday, business manager Dan Poolman told the school board that the district must deal with a shortfall next year of just under $1.6 million.

That’s on top of last year’s $1.85 million hole in the budget.

Highlighting that number, the first reduction-in-force notices (RIFs) were sent to

29 South Whidbey teachers on Thursday, telling them their services may not be required in the fall because there’s no money to pay them.

Teachers in every school in the district received the preliminary notices. Final notices to teachers will be forwarded on May 15.

Between now and that date, the board and district staff will look for ways to cut costs in the district’s $15.3 million budget. Staff costs, however, represent 83 percent of the annual budget.

It won’t be easy finding places to chop.

Poolman ran through grim charts detailing the problems facing the board. The drop in enrollment during the past several years is the main reason for declining revenue.

“Numbers of students next year will be down in all buildings,” Poolman said. “Over the past year, the decline in enrollment has been drastic, and we expect next year to be the second largest decline — 120 students — in our history.”

On enrollment alone, South Whidbey will see a $646,000 shortfall next year.

There are other factors at work making life unpleasant for the school district, Poolman said.

One of the biggest is the Legislature’s decision to transfer Initiative-728 money — passed by voters as a classroom size-reduction measure 10 years ago — to the state’s general fund.

In 2008, the district received almost $800,000. Next year, it will get nothing from I-728.

“Not a penny,” Poolman said.

One result is that average class size at the elementary school will increase from 26 to

27 students in 2020-11, since there will be three to four fewer teachers available.

“Some districts are seeing 30-plus students in a class, but we aren’t there yet,” said District Superintendent Fred McCarthy.

“We’re faced with a Hobson’s choice,” said Board Member Fred O’Neal, referring to a free choice in which only one option is offered. “Class size will have to go up if we are to keep teachers, and that must be our primary goal.”

Elementary school librarian Val Brown noted the potential Catch-22 factor of increasing class size.

“If there are too many kids in one class, then parents will be encouraged to take their children out of the system,” she said. “Fewer kids equals less money, causing bigger classes and so on.”

When Board Member Rich Parker queried Poolman on the number of nurses employed by the district, elementary school teacher Jan McNeely asked the board to step away from number crunching for a moment.

“Today, we’re seeing more kids with a variety of emotional, mental and physical problems,” she said. “There is fewer staff to deal with them, although we try our best. We’ve truly cut the fat from the bone.”

McNeely, who is also co-president of the teacher’s union, said teachers are caught up in the daily grind, and some children may fall through the cracks.

“I’m dealing with a little 7-year-old who is seriously depressed and thinking about hurting herself,” she said. “I’m upset that I didn’t catch it sooner. You need to think about that when you make decisions.”

O’Neal said that every effort will be made by the board over the next 30 days to find ways to cut expenses from buildings, services and other non employee-related costs.

“I’d rather save a teacher’s job than maintain an empty building,” he said.

The school board will have its next budget workshop at 6:30 p.m. Wednesday, May 5 in the elementary school community room on Maxwelton Road in Langley.

Jeff VanDerford can be reached at 221-5300 or jvanderford@southwhidbeyrecord.com.