As Oak Harbor School District officials prepare their 2005-2006 budget, they estimate approximately $1 million worth of reductions need to be made.

The reductions offset expected cuts in federal Impact Aid revenue and anticipated increases in employee costs.

“This is not unique to Oak Harbor. It’s systemic to many schools throughout the state,” Superintendent Rick Schulte said during a recent school board meeting. He said the Tacoma School District is bracing for $10 million in cuts while Sedro-Woolley has to make $1.5 million in cuts.

Although he didn’t have any hard numbers yet, Schulte is expecting several hundred thousand dollars in reduced Impact Aid. That reduction follows a decrease in student enrollment in Oak Harbor schools.

The school district anticipates paying an additional $200,000 in retirement contribution for employees. Schulte said the cost could increase by the same amount every year for the next five years.

Employees may receive a cost-of-living pay raise this year and next year. The raise has been mandated by the Legislature, but isn’t completely funded by the state.

Schulte added the school district is also dealing with higher gas prices. Diesel fuel for buses has increased by $1 a gallon over the past year representing an $80,000 increase.

To help propose cuts, an advisory committee is being formed to ensure more people are involved in the process. The 15-to-20 member committee will be comprised of representatives from the three unions, members of PTAs and board members.

The committee also will examine how current programs are being funded.

“The public always wants to know that we’re putting dollars where they’re most needed,” said Board President Kathy Jones.

Schulte said he would like to have the committee formed after spring break. The committee should have recommendations ready to present to the board by the end of May. The budget will be adopted in August.