TEMECULA -- The Temecula school board approved a budget Tuesday night that cuts deep into the district's general fund, but retains almost all the employees and programs.

That may not be the case next year, as it is understood that jobs will be threatened if the state budget picture doesn't improve.

Temecula Valley Unified School District trustees voted unanimously on a 2009-10 spending plan that projects $211 million in revenue and $218 million in expenses.

The district started the current school year with $27 million and ends the year with an estimated $17 million.

It expects to be down to $10.3 million one year from now, which includes the state mandated 3 percent in reserve, which is $6.5 million.

The district had a $222 million budget to start 2008-09, but had revenues of $205 million after state budget cuts.

The new budget was buoyed by federal stimulus money and the ability to move some formerly restricted money into the general fund, according to Jeff Okun, assistant superintendent, business support services.

"As we look to the future, we have some real challenges in front of us," Okun told the board. "Unless things really change over the next year for the better, we're looking at severe reductions for 2010-11."

He said the district could be looking at an additional $16 million in cuts for the next school year. And those reductions would come at the expense of jobs, he said.

According to the budget summary, the district saw significant reductions in income in 2008-09. The amount of money the district gets based on attendance, one of the major monetary sources for the district, decreased by $388 per student during the school year.

The district has budgeted $5,331.56 per student in the new budget. Attendance next year is projected at 27,500 students.

The budget also incorporates flexibility granted by the state with regard to most restricted funds. The district is now allowed to use that money in any manner, which helped save jobs and programs, administrators said.

The budget contains 2,304 full-time positions, down 10 from last year. Most of those positions were lost because fewer employees were needed due to the closure of Sparkman Elementary School.

The adopted budget contains a minimum 3 percent reserve and very little additional money to cover possible further reductions in state revenue, Okun said.

As part of the budget, all school site and department budgets have been cut by 10 percent and school resource officers, which are sheriff's deputies assigned to the district, will be paid for by the city of Temecula, according to Superintendent Carol Leighty.

Salaries and benefits for the district's 2,300 full-time positions will cost almost $190 million, which accounts for more than 87 percent of the budget.

The district gets the majority of its money from the state based on student attendance and property taxes. With school funding in danger of being slashed as the state continues its economic slide, the numbers in the budget are likely to change, according to Okun.

School districts are required to file a budget with the county office of education by the end of June, then are given 45 days to make revisions.

Call staff writer Craig Shultz at 951-676-4315, ext. 2625.