SAN MARCOS - During an emotional meeting Tuesday night, San Marcos Unified School District officials recommended sending pink slips to nearly 120 employees - everyone from teachers to bus drivers - in an effort to reduce a projected $9 million budget deficit in the upcoming school year.

Superintendent Kevin Holt identified about $6.2 million in cuts from the district's roughly $141 million projected budget for 2008-09, including laying off elementary physical education teachers and aides, counselors, night custodians, nurses, groundskeepers, high school librarians, a psychologist and the coordinator for the district's guaranteed-admissions program with Cal State San Marcos.

"We don't have any nonessential positions in our district, but the governor has decided that schools should take yet another cut," Holt told a packed room of employees and community members. "I feel Gov. (Arnold) Schwarzenegger is twisting my arm, putting it behind my back and making me say things I would not naturally say."

Holt presented his recommendations during a special meeting to address Schwarzenegger's proposal to slash nearly 10 percent of the funding for public education from the state budget, part of a plan to erase an estimated $16 billion revenue shortfall.

District officials said last month they're facing a $9 million deficit for the fiscal year starting July 1 -- a $3 million reduction in state funding and a $6 million increase in projected ongoing expenses.

Layoffs for certified employees are expected to be approved by the board during its regular meeting March 10. Pink slips must be sent to teachers and other certified employees by March 15. Layoffs of classified employees - personnel such as custodians, clerks and mechanics - would be approved at the board's April 14 meeting.

The district can rescind the notices if the situation changes, but that doesn't look likely at this point, district officials said.

"I think the worst-case scenario is a reality to us," said Holt, adding that it could be September or October before the state finalizes a budget.

In addition, Holt recommended increasing middle school and high school class sizes - resulting in a total loss of 15 teachers - for a combined savings of $975,000. He also proposed eliminating middle school athletics, employee-recognition events and home-to-school busing, except for special education students.

Canceling busing would trim $1.2 million, and it would include laying off 27 transportation employees. A number of employees expressed anger to the school board over the possible loss of busing, which they said would increase traffic, impact the safety of students and affect attendance by putting working parents in a bind.

"If you think you're losing money now, wait until all those children stop coming to school," said bus driver Tammy Lynch. School districts receive state funding based on average daily attendance.

The rest of the $9 million shortfall could be covered by the district's unrestricted reserve fund or come from cost-saving measures that would have to be negotiated with employee unions, such as not paying employees automatic salary increases based on experience and education, reducing work hours and delaying the start of school from about mid-August to after Labor Day to save money on utilities. Those items would make for a combined savings of $2.9 million.

David Horacek, board vice president, said now is the time for the unions to become a part of the solution to the district's budgetary problems.

"It is my belief that over the past several years this district has been forced by an unfair and outdated contract with our unions to spend more money out of our budget than we take in," Horacek said, eliciting some boos from the crowd. "Had we not burned through the rainy day reserve over the past several years to accommodate the union contracts, we would be better prepared to weather this storm."

- Contact staff writer Noelle Ibrahim at (760) 740-3517 or nibrahim@nctimes.com.