School District 15 approved a budget Aug. 10 for the 2011-2012 school year with a projected deficit of $6.4 million.

Despite the deficit for this school year's budget, District 15 still will have more than $48.8 million in reserve funds. However, school officials believe that annual deficits could consume the reserve funds in a matter of years, leaving District 15 in a precarious financial position.

"Our financial health is really deteriorating fast," school board member Manjula Sriram. "These numbers are very, very scary right now."

In January, District 15's five-year budget projections had the annual deficit growing to about $12 million by fiscal year 2015-2016.

Accoding to District 15's 2011-2012 budget, the school district will have $143.7 million in revenue and about $150.2 million in expenditures.

The operating budget deficit is about $5.1 million, school board member Scott Herr said.

So far the school board has resisted making cuts that would increase class sizes.

The school board initiated talks with the district's union – the Classrooom Teachers' Council – in August despite the fact the current contract runs through August 2012.

The talks ended in April with the two sides issuing a joint statement.

The Education Fund, which includes teacher salaries and benefits and is primarily funded through property tax revenue has a deficit of $3.4 million in the 2011-2012 budget.

District 15's financial documents are online.

Salaries in the Education Fund are increasing 3.2 percent from $83.4 million to more than $86.1 million.

Property tax revenues for the district are increasing by 4.6 percent. Next budget year that is expected to fall to 1.3 percent in the following fiscal year.