Eden Valley-Watkins School Board members received a mixed financial assessment at Monday’s board meeting.

Superintendent Larry Peterson said Tuesday the board reviewed its revised 2007-08 school budget, which appears to have a $190,000 surplus. Unfortunately, the 2008-09 budget may be in the negative.

“Next year, looks like we’re down $109,000,” Peterson said.

Peterson said the boost this year is likely attributed to higher than projected enrollment. The 2007-08 budget was built on an assumption of 840 enrolled students. So far, the district has averaged an enrollment of 860.

“I think the 20 students that we’re up ended up being a big benefit for us,” Peterson said.

Peterson added that the district would have had a bigger surplus if not for special education funding. Because of a prorated funding formula, the district lost $25,000 to $30,000. Other area districts also have been hit by the funding formula in recent years. Litchfield School District, for example, lost $180,000 in 2006-07.

After making $330,000 in cuts last summer to help balance the 2007-08 budget, the School Board will use the surplus to boost EV-W general fund balance. The district currently has $161,000 in its unreserved fund and about $400,000 in its total general fund. Those dollars wouldn’t get the school through a month of operation, Peterson said.

“We don’t have very much in our general fund and need to replenish that fund,” he said.

Fortifying the general fund also may be a good idea, as the district is anticipating additional cuts for 2008-09. The School Board approved a resolution giving school administration freedom to make recommendations for cuts. Peterson said the district will likely make $109,000 in cuts to balance the budget.

The loss in revenue can be traced to the state’s 1 percent funding increase, which is not enough to cover the district’s anticipated expense growth of 3 percent, Peterson said. He expects many districts will face deficits in the coming year.