LANSING | A Sunnybrook Elementary District 171 committee is expected to recommend next month what action the district should take to improve its financial condition.

Bloom Township School Treasurer Rob Grossi presented the Referendum Feasibility Committee last week with a financial overview and a bottom-line scenario indicating without additional revenue, no significant increase in General State Aid, and no reduction in spending, the district's fund balances will be depleted at the end of the 2010-11 school year.

The committee plans to meet again Tuesday and come up with something for the School Board to consider at its Dec. 15 meeting.

The district's options include a tax rate increase, making at least $1 million in cuts, borrowing, a combination of the three alternatives or doing nothing.

Because the district has limited borrowing power, Superintendent Joseph Majchrowicz said the choices really come down to two: a rate increase or significant cuts.

"Neither is a pretty picture," said Majchrowicz, who is among the committee's members. "We must continue to provide an educational product to the community.

"We understand these are tough economic times, but we can't do the old ostrich thing and put our head in the sand. We can't just look the other way and assume it's going to go away. We are not being frivolous with our finance practices. We've made cuts. We've co-opted (insurance and purchases). We've negotiated fair contracts that have allowed our employees to stay above inflation."

Cuts amounting to $1 million would affect more than 20 positions across the board and the elimination of all extracurricular sports, clubs and activities, he said.

"We don't like this any more than anyone else, but we can't turn a blind eye," Majchrowicz said.

A possible referendum would be the district's second since April 2007 when voters turned down the school system's request for a total tax rate increase of $1.22 per $100 of assessed valuation.

If the committee recommends another rate increase proposition, Majchrowicz said he guarantees the amount requested will be less than half of what was sought last time in order to minimize the impact on taxpayers.

The soonest the district could place a tax question on the ballot would be April 2, he said.

Along with Majchrowicz, other committee members include Phil Conboy, director of finance and technology; Kenneth Lynch, board president; David Lilly, board vice president; Carrie Lape, PTA president; Holly Spears, parent; Christine Ondera, Heritage Middle School band director; and Deb Guzak, Nathan Hale Elementary School early childhood teacher. Grossi and Jamie Rachlin, senior vice president of public finance with the investment banking firm of Griffin, Kubik, Stephens & Thompson Inc., serve as financial consultants.