Tax caps, the declining economy and the state's budget crunch are all factors in Woodland School District's projected financial woes.

During its meeting Monday, Superintendent Doug Foster presented the tentative levy, to be approved in December. The district is requesting $2,770,432, about 5 percent higher than last year's extension of $2,638,506. However, due to the tax caps in Livingston County, the district actually will receive $2,702,181.

Overall, the district's property values are increasing by just 0.1 percent, adding only $2,640 to the district's funding. The only saving grace this year, said Foster, is that several companies have expanded and for the first year that is not under the tax caps, generating about $61,000.

"That's what's going to give us a little more (funding)," he said.

But next year, Foster is predicting no growth, meaning the amount extended through this summer's tax bills likely will be the same amount the district receives the following year. Add to that severe cuts predicted in state funding and a loss in corporate personal property replacement tax, and Foster is expecting to have to make some budget cuts district-wide.

"We're talking about very lean. I'll be talking to the department chairs to make budget reductions," he said. "My costs are going up by 5 percent or more each year. And I'll be losing money in state aid, I'm convinced of that. I'll be staying at the same level for local revenue, if not losing, and corporate personal property replacement tax is not coming in."

"The next two years are going to be very scary," he added.

The levy will be on display at the district office and will be up for approval at the December board meeting. With the anticipated levy, the tax rate will drop from $5.63 per $100 of assessed value last year to $5.37 per $100 this year. If a homeowner with a $150,000 house maintains the same property value, the school district's portion of the tax bill would decrease by $130.

In other action, the board:

• Approved a maintenance contract with Verizon for the school's phone system at a cost of $765 per year.
• Announced the annual senior citizen Christmas dinner will be at 1 p.m. Wednesday, Dec. 2. The annual student Christmas performances will be Tuesday, Dec. 15, for junior high and high schools and Thursday, Dec. 17, for grades K-5. Both performances begin at 6:30 p.m.
• Introduced its new paperless method for conducting board meetings. All materials are downloaded to laptops used by the board. Foster estimated that given the time his secretary spent preparing board packets, the cost of materials and the price of making copies, the switch will pay for itself in one year.