When Reynolds Area School Board began the budget process for 2002-03, it found a shortfall of $2 million.

The district had to go to court to resolve issues. Since then it has worked to set financial matters straight.

Since May the board has met continually, deliberating tighter budgetary measures. What it came up with Wednesday was a $14.4 million budget for 2003-04 that raises taxes 4 mills.

At 51 mills, the new rate, a home assessed at $10,000 would carry a tax bill of $510, an increase of about $40.