A northern Michigan school district goes over budget for the second year in a row despite making cuts. And this time it could prove to be an even bigger problem. The Charlevoix Public School district dropped staff and added fees for the 2008-2009 school year, but it wasn't enough to make up the cost.

While budgeting for 2009-2010 school year school leaders found a new deficit, up to one million dollars extra in expenses that they don't have the money to pay for.

Students in the classroom are writing about what they think life will be like in the future, but it's the future of the Charlevoix Public School district that has school leaders concerned about how they'll continue to operate classes.

"We want to maintain those high academic standards but how do you do that with less revenue coming in?" said Chet Janik, Charlevoix Public School Superintendent.

By the end of the fiscal year in July the superintendent says the district is still about $350,000 short, that's after cuts and added fees. He says they're trying to cover those extra expenses with their emergency money."We're going to dip into our fund balance but every time we do that it leaves less money for future years," said Janik.

And they're not out of the deficit yet, after budgeting for the 2009-2010 school year the district came up short again. The superintendent says they budgeted to receive $11 million but their costs amount to $11.8 million leaving them $800,000 short. That problem on top of this one..."We're anticipating losing about 40 students next year, so at our funding level if we lose about 40 students and our state aid goes down right there is a loss of about $320,000 dollars," said Janik.

But he says before they decide on any more cuts in the classroom, this time they're taking the issue to the community and asking for input to help solve the ongoing problem. The superintendent says he will be sending letters to every household in the Charlevoix Public School district urging residents to take part in the budget process.