(Litchfield MN-) The Litchfield School District is facing a general fund deficit of $824,000 by the end of the coming school year. The Litchfield Independent Review says the preliminary budget shows expenses of 18.5 million dollars and revenues of only 17.7 million. In addition to the general fund deficit, there would be a nearly $24,000 food service fund deficit and a nearly $75,000 deficit in the community education fund. 74% of the district's costs are salaries, and 85% of their funding comes from the Minnesota Legislature, which has increased funding by 2% next year and another 2% the year after. The Litchfield School District went into statutory operating debt 11 years ago and to recover, they made $800,000 in budget cuts, including cutting 9 teacher positions. To avoid a similar situation this time around, the district is going to be looking at cuts as well as increasing revenues by going to the voters this fall with an operating levy referendum, as well as a building referendum. In order to get it on the November ballot, the final details will have to be worked out by the end of August.