Amid growing money problems and the anticipation of a tax-increase vote of some kind later this year, the St. Joseph School District Board of Education on Monday approved a $133 million budget for the next school year.

The district will operate at a deficit of about $7.7 million, which will take the district’s estimated ending fund balance to about 16% of total expenditures. That’s well below the board’s desired 20% figure. Revenues are estimated at $125,674,000 and expenditures estimates are $133,361,543. Net total loss of all funds is $7,687,543.

The district has operated at a deficit ever since the 63-cent operating levy was allowed to expire three years ago. For this budget, staff estimated an increase in state funding, but in their budget message, Superintendent Dr. Robert Newhart and Director of Finance Wesley Metz say that the current operating deficit is unsustainable without an increase in the local tax levy. The district is discussing a ballot issue pending board approval.

The district has been working on efficiencies in many areas, including energy-efficient lighting, a self-insurance health plan, and some of the recommendations from the State Auditor’s Report in 2015. Officials say the district is increasing salary and benefits by about $3 million overall. An inventory system is in place, and will help the board manage current assets. And a timeclock system has been implemented, for more detailed and accurate payroll information.