The deficit gaps are closing for both the general and food budgets at South Williamsport Area School District.
The school board last discussed the general budget in March when the deficit was $464,000, Superintendent Dr. Mark Stamm said.
Since then, an additional $79,000 in revenue came from the governor's budget. Two teachers will retire at the end of the year. Natural gas prices decreased.
But, administrators also found an additional $8,600 in expenses.
The current deficit is $122,302, Stamm said.
"We'll keep working," he said. "We have a lot of options we're going to look at."
The preliminary budget will be available at the next school board meeting, held May 21.
An increase in students' breakfast and lunch prices helped reduce the food budget deficit for next year.
Preparing a food budget is made difficult by the constant change in prices of food, Stamm said.
In the upcoming school year, students will have an increase in the availability of fruit, vegetables, whole grains, fat-free and low-fat milk, as well as a reduced level of sodium, said Mary Kay Bukeavich, of Nutrition Inc.
The cost of an elementary school breakfast for students in kindergarten through sixth grade will increase from 85 cents to $1. The cost of a high school breakfast for students in seventh through twelfth grades will increase from 90 cents to $1.10.
The cost of an elementary school lunch will increase from $1.65 to $2. The cost of a high school lunch will increase from $1.90 to $2.25.
A la carte items, which include the extra items for lunch not included with the meal, such as Gatorade and ice cream, will increase by 5 percent.
Even with the price increase, a $19,421 deficit still exists. Whatever deficit remains will be absorbed by local funds from the general budget.
For every nickel prices increase, 1 percent of students stop purchasing meals, Bukeavich said.
Of the 1,300 students, 900 students qualify for paid, reduced or free lunches, said Denny Artley, business manager.
The need for healthier options is part of the Healthy Free Kids Act that President Barack Obama signed in December 2010.
"The reality is we're serving them healthier," Stamm said.
The board discussed whether providing healthier options for the students makes them eat it, or if some of the healthier food is wasted. Bukeavich said she will look into having a study done to see how much food is wasted.