Sioux Central school officials have cut their projected budget for the coming school year by about $150,000.
About $110,000 of the reduction will come from staffing - mostly in the form of reduced assignments and hours.
Even with the cut, district officials announced this week that they now anticipate a "six figure" deficit in the budget for 2008-09.
Sioux Central has lost more than a third of its student population in steadily declining enrollment since 1993, and with it, have bled per-pupil funding.
Reduced state assistance and natural gas energy costs that have nearly doubled from 2007 levels have contributed to the crisis, according to the district newsletter.
There are no easy answers to the district's economic crunch, a reality for many rural schools statewide, officials said. With no change in enrollment in sight, and energy costs rising toward the $200,000 a year mark even with a modern K-12 facility, "the only alternative for Sioux Central is an Instructional Support levy," officials said.