Jamestown Area School Board members are considering staff changes, a partial freeze on spending and raising taxes to balance the 2003-04 budget.

Directors met Thursday for a pre-budget meeting and were told by Superintendent David Shaffer that it appears the district is facing a $278,000 deficit for next year.

Increased costs for salaries, retirements and health care, combined with no increase in state funding for next year, are reasons for the deficit, Shaffer said. He said in the 16 years he's worked in Jamestown, the school board has always had a financial plan.

"(The plan) allows us to weather a difficult year, which I think is coming," he said.

Typically, school districts get a 2 percent increase in state funding which equates to about $47,000 for Jamestown, Shaffer said. He said nothing will be finalized until the governor signs the budget, but he's not anticipating any increase.

School administrators have been conservative with expenditures, Shaffer said. He said the principals were told to keeping spending to necessities, though they pretty much do that already.

The spending freeze should save $30,000 for the district, Shaffer said.

Shaffer said he expects there will be "staff adjustments" that will save $73,000. He said he's not prepared to discuss the adjustments, because he's still developing a plan and it's a personnel issue.

The decisions are difficult "but they're not panic decisions," Shaffer told the board. He said the changes will not adversely affect the district and will be things everyone can live with.

"It's not like, 'Oh my goodness the sky is falling. What are we going to do?' " Shaffer said.

Shaffer said he's expecting to need $78,000 in taxes. In Mercer County, a mill of taxes generates $14,400 for the district, and in Crawford County a mill generates $39,600, according to school figures.

The expected decrease in spending and increase in revenue still leaves a $97,000 deficit, he said.

Shaffer said the additional money could be taken out of the district's savings.

The announcement that Werner Co. may be pulling a ladder line out of the Greenville-area community also created concern for school officials.

Shaffer said the district could lose $12,000 a year in wage tax if 500 Werner employees lose their jobs. Director John Tucker said he's concerned that if people lose their jobs there will be less money spent in the community.

Board President Guy Brooks said directors can plan on more frequent budget meetings in upcoming months.