Protection of K-12 education does not mean the Austin School District is immune to cuts aimed at balancing the state budget, according to Superintendent Corrine Johnson.

While the general education fund will probably be left alone, other sources of revenue may be scaled back or completely eliminated after a budget is approved by the legislature.

Johnson said the state senate is currently considering a bill to cut compensatory aid. This money is given to schools based on the number of students eligible for free or reduced-price lunches. In Austin, that comes to about $1.3 million, most of which is used for salaries.

Although the money could be levied back by the district, Johnson is hesitant to consider additional levies.

"We passed our last levy two years ago," she said. "We'd be doubling the tax levy to the school."

The current levy raises $1.1 million in revenue, but easing the burden wouldn't be as simple as that. The school district wouldn't see future levy money until the following year and would be left scrambling for funds in the meantime. Position cuts would be a possible result.

Another money-saving method discussed by legislators has been a wage freeze. Robert Riege, the president of the Austin Education Association, said wage freezes have long-term ramifications and should be carefully considered. He said retirement packages are figured based on an employee's salary, so a wage freeze affects benefits years down the line. That, along with rising insurance and cost-of-living expenses, means a wage freeze is more of a wage cut.

"It's not a cut for just two years," Riege said. "It's a cut for the rest of your life."

Riege is cautiously optimistic in the matter, however. He said Speaker of the House Steve Sviggum, R-Kenyon, recently came out against wage freezes.

"If he doesn't support wage freezes, I don't think it's going to get a lot of support even on the Republican side," Riege said. "I think that's a good sign."

Johnson thinks the issue could go either way. She said the state has traditionally been very strong for educator's rights. However, she said usually about 90 percent of the governor's budget gets passed, and in the case of a strong governor, which she considers Pawlenty to be, as much as 99 percent could get passed.

"That tells me there's going to be a wage freeze, but when I look at the history of the state, I think, 'No way,'" Johnson said. "I wouldn't bet a nickel either way."

Johnson said that the school has been running very efficiently. She said wherever there was room to save money -- combining smaller classes for example -- the school district has moved to take advantage of that.

"You've got to make those reductions when you can," Johnson said. "But it's not a very popular way of running a school."

Until the legislature passes a budget, which could be into the summer if it goes extra sessions, the district can't act. Johnson said the administration doesn't want to scare employees with various scenarios.

"You don't want to be premature and scare folks in ways that never come to pass," Johnson said. "On the other hand, you don't want to just hit them with something. It's a very difficult balancing act."

Matt Merritt can be reached at 434-2214 or by email at matt.merritt@austindailyherald.com