BETHEL – A $204,000 shortfall in state aid for SAD 44 in the coming fiscal year could mean staffing cuts, depending on the outcome of budget work this month and next, Superintendent David Murphy said.

He just learned about the shortfall, which could also mean paring several support positions, some educational programs, and reductions in library, instructional and maintenance supplies.

In the current budget, a math specialist position which wasn’t filled, was eliminated for the coming year. Additionally, the contingency account was halved and the capital improvements account has been reduced by about $50,000. Next, line items will be trimmed by $200,000 or more.

“Between now and the 28th, we’ve got to come up with another $200,000 worth of cuts, and I think that’s where we’ll be facing challenges,” Murphy said by phone Tuesday afternoon in Bethel. “We definitely could end up in position cutting.”

At Monday night’s board meeting in Andover, directors began work on a new budget that had previously been formulated and scrutinized, so far, during five or six meetings by the Finance Committee. It started budget work last month.

While far from being finalized as of Monday night, the projected figure was $10,179,236, a 1.8 percent increase over the current year’s budget of $9,998,961. However, just to reach that $187,000 hike, directors will have to chop.

“That $187,000 is less than the amount of money being reduced by the state, which we’re absorbing. I think that’s what’s happening across the state. Everyone is facing budget challenges. … It’s a pretty big impact to the budget this year,” Murphy said.

State valuation and student population averages measured against SAD 44’s are largely driving the shortfall.

For SAD 44 state aid, Murphy said, is calculated by comparing valuation of the district’s towns with the state valuation average. That and the district’s percentage of enrolled students compared to the state average. The district is one of only two in Maine still allowed to use the old cost-share formula.

Regarding valuation, “the state is 11 percent up and ours is at 19 percent. That’s not a good thing. As far as the state goes, it shows we have more of an ability to pay.

“And, across the state, the student enrollment average is 2 percent down while ours is down 4 percent. That’s not good when you’re dropping more than the state average,” Murphy said.

A reduction in state aid means district taxpayers would pick up the difference. But that’s just the tip of the iceberg.

“In addition, there are rising energy costs, negotiated increases with unions, and also the significant impact of Region 9’s expansion. That alone is $180,000 of additional costs in the coming year. All of this added together presents a pretty big problem. Because we have to eat up the state aid reduction, any increases to the budget will mean an increase to taxpayers,” Murphy said.

That’s why directors at Monday night’s meeting asked the superintendent to detail options based on a 1.8-percent increase and present it at the board’s next meeting on Monday, April 28.

“What I find interesting, is that in 2005-06, the local share was $6,000,878, and with a 1.8 percent projected increase, the total impact would be $6,050,381. In the past four budget years, that has only increased a half percent every year,” Murphy said.