The St. Peter School Board has directed district administration to identify $500,000, or even $1.2 million, in possible expenditure reductions.
Board members said they are trying to be proactive as the State of Minnesota deals with its own budget deficit of more than $1 billion.
The vast majority of funding to school districts flows from the State of Minnesota.
Superintendent Dr. Jeffrey Olson said the state provides close to 80 percent of District 508's funding.
School districts throughout Minnesota are bracing for cuts in state funding.
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