Current estimates show the MMSD gross budget gap for 2007-08 to be $9-12 million. These are preliminary calculations. When we finalize the forecast in January, we will refine this estimate.

As we go through the process to construct a balanced budget for consideration by the Board of Education in April of 2007, we will further define the impact on existing programming and staffing. Final budget adjustments are made in the fall.

Step One	Gross gap $9-12 million	December 2006
Step Two	Forecast	January 2007
Step Three	Balanced budget	April 2007
Step Four	Adjustments based on actual numbers	Fall 2007

The $9-12 million estimate is a larger amount than normal as a result of a more conservative approach to budgeting and potentially lower revenues from the state and federal governments for programs like Special Education. Revenues are a concern.

In the past, where we have missed budget projections, it was often that revenue didn't come in as predicted. As things are squeezed tighter, we need to better anticipate that.

This is a very early estimate, and is only the first step in a process that will continue through much of next year. We can refine the figures as the process moves forward.

For more information about the 2007-08 MMSD budget, click here.