Durango School District 9-R proposed a nearly $40 million budget for 2009-10 at a board meeting Tuesday.
Laine Gibson, chief financial officer, said the $39.92 million budget includes fewer staff because of the district's reorganization.
"With fewer students, we have less staff," he said.
Most departments in the district's central office were cut 5 percent to help cover reduced revenue from enrollment. Transportation and facilities were not cut.
The district plans to have 126 fewer students in 2009 because of a small freshman class at Durango High School and competition from Animas High School.
A public hearing on the budget is set for June 9.
The board is scheduled to vote on the budget at its June 23 meeting.