The district anticipates receiving about $8 million more in state dollars, local property tax and other revenues than in the current year’s budget, but costs are rising even faster, according to a district presentation at a School Board study session Tuesday night.

The district’s expected $164.7 million in revenues won’t be enough to cover the $170.3 million it would cost to offer the current level of basic education services next school year.

It’s the district’s biggest shortfall in the past seven years, district Superintendent Tom Seigel said.

Bethel chief financial officer Harvey Erickson explained the main reason for the shortfall: State revenues have not kept pace with the salary and pension increases granted by the Legislature.

Puyallup, White River and other school districts around the South Sound are facing a similar scenario.

Bethel teachers, counselors, librarians and other instructional staff with a certificate are in store for a 5.1 percent raise approved by state lawmakers. That includes a 3.9 percent cost-of-living increase, plus a 0.5 percent raise that went unpaid from a previous year, as mandated by voter-approved Initiative 732.

Bethel teachers also will receive a state-approved 0.7 percent catch-up raise to bring them closer into line with higher-paying districts, along with separate raises bargained with the district.

While the state approves the cost-of-living and catch-up raises, it gives districts only enough funding to cover salaries for employees supported by state funding. Employees hired through local levy dollars also receive the state-approved raises, but their salaries are supported by local levy dollars. That means the district must dip into the local pot of money that would otherwise be available for other uses.

Besides the pay increases, the district will pay roughly $1.8 million more in pension costs.

Declining enrollment will add to the district’s woes. After years of rising enrollment, the student population fell by 15 children this fall from a year earlier. Next fall, the district forecasts it will lose the equivalent of 163 full-time students from this year.

District administrators met Wednesday to begin considering what services or programs to trim. Erickson said attrition will likely cover cutbacks in instructional staff, but he’s not yet sure about support staff members.

Administrators have already put on hold some expenses originally planned for next year: an $850,000 science curriculum adoption, $250,000 in technology upgrades, and $300,000 in five to eight elementary staff positions. Those expenses aren’t included in the shortfall calculation.

At Tuesday’s meeting, board member Joy Cook urged administrators to remember the importance of music and other fine arts programs to students. The board will meet at a 6 p.m. May 20 study session at the Educational Service Center to hear what budget cuts the administration proposes.

Seigel said the shortfall to the district’s operating budget won’t affect progress on the district’s planned career and technical skills center because that project is funded through separate district and state capital budgets.

Debby Abe: 253-597-8694