DONNELLSON -- School districts across the state are busy formulating budgets for the next school year.

The Central Lee School District is no different.

At the regular meeting of the board last week, Superintendent Chuck Reighard presented the board with an overview of the elements that make up the district's budget and preliminary figures for the coming school year.

Like many other districts, Central Lee has experienced a steady drop in enrollment in recent years. The declining enrollment has made it necessary for the district to request a budget guarantee from the Iowa Department of Education.

School districts that exercise this option are guaranteed the same amount of money to operate as the previous year. The guarantee is funded through an increase in property tax asking. But, because schools on the budget guarantee will be phased from the program by 10 percent each year, the district will need to compensate for $2,500 lost through the phase-out.

Reighard said a 10 to 10 1/2 percent rollback in ag land valuation also will impact the district's financial picture. Reighard has estimated that in order to meet the budget guarantee, the district will need to levy an additional 38 cents per $1,000 in assessed property valuation.

The district is required to submit a certified budget to the Department of Education by April 15.

During his budget presentation, Reighard said the district's funds are generated through property tax (32 percent) and state aid (47 percent). Ninety percent of the funds raised through property taxes go to the district's general fund and of that amount, 75 percent is spent on direct student instruction, Reighard said.

The state Legislature determines two years in advance the amount of allowable growth, the percentage of spending the district is allowed to increase per student, that will be set. It has been proposed by some legislators that amount be set at 6 percent for the 2005-06 school year. This year allowable growth is at 1 percent. In the 1998-99 school year, allowable growth was 3.5 percent.

The difference between regular program costs from one year to the next, if a school district does not lose enrollment, generates new money. Reighard said Central Lee has not generated new money since the 2000-01 school year when it received $227,014.

In other business, the board heard an update from elementary school principal Sandie Hook about plans to expand the preschool-prekindergarten program at the school. An empowerment zone grant has been applied for to help defray some of the cost to expand the program to accommodate more students needing preschool and prekindergarten services.

For every student who is 5 years old who enters the preK program, the district will receive state aid for that student. A fee schedule is still being worked out for the younger students. Scholarships also will be available for students with low socio-economic status.

Discussion was held on whether to hold the program to four days or to increase it to 4 1/2 or five full days. Hook said because of the nature of the activities students are engaged in at this level, the amount of preparation time for the teacher is greater than that of a teacher from an upper level. The preK, preschool teacher also does not have preparation time built into the school day when students would attend "specials" -- art, music, library and physical education.

Hook said she is not keeping a waiting list for the program. The district will hold a Child Find on March 22 where 3- and 4-year-old children can be assessed for hearing, vision and skills. At that time, candidates for the program will be determined.