The Hoquiam School Board passed a resolution Thursday giving Superintendent Mike Villarreal the authorization to develop a “reduced educational program” to address a projected $2 million shortfall in the 2019-20 school budget.

“The Board of Directors has determined in order to reduce District expenditures to the level of reasonably anticipated revenues, it is necessary to make certain reductions in the District’s educational program, that may include reductions in administrative, certified and classified staffing for the 2019-20 school year,” read part of the resolution.

Factors in the shortfall include a new state funding formula that limits what the district can collect in local levy funds. The new formula is part of the “McCleary fix” designed so that the state pays a greater share of the cost of basic education, but Hoquiam is one of the districts that is worse off after the fix. Another factor is that the district granted raises of 17.6 percent to 21.23 percent, along with other districts under pressure to pay teachers more in light of the new state formula.

Board president Hoki Moir said the resolution’s passage is procedural, allowing Villarreal to explore budget reductions to address the $2 million projected deficit. This could include the reduction of some school programs, which can range from the arts to activities like field trips; these programs cost the school about $1 million annually, said Villarreal shortly after the teachers’ contract was approved in October.