EWEN -- Two years ago, Ewen-Trout Creek Schools were more than a million dollars in debt.  Since then, the district has been working its way out of the red.

They've reduced busing, tried a shorter school week, but now they feel they're on the right track.

For the past year, second and third grade students have shared a classroom.  Third and fourth grades were also combined this year.  Both those adjustments were made to help the district eliminate an alarming high deficit, and it seems to be working.

As of June, the district had reduced its debt by about half, from $1.5 million in 2008 to $761,000 in 2010.

"I think we're going to make more good progress this year, though it gets harder as you get yourself pared down to the bone and expectations are increasing,” says Superintendent James Rayner.  “And State funding is a challenge in and of itself."

Rayner has now prepared a multi-year plan, which should allow the district to operate at a surplus by 2014.

Of course its success is dependent upon steady funding from the State and will likely include future reductions in staff.

"You can't help being distressed because it means that someone is going to be losing a job or part of a job,” says Principal Paul Healey.  “Nobody wants that, but unfortunately it has to happen or we're never going to get out of our deficit situation."

The superintendent will share the deficit elimination plan with the board and sought approval at Tuesday night’s meeting.

A final draft must be submitted to the State by December 15.