With state funding set after Colorado’s new School Finance Act was recently signed into law, the Boulder Valley school board heard a budget update Tuesday that proposes a smaller than typical cost-of-living raise of 0.6%.

District officials point to a new state funding formula and declining enrollment as the main reasons for a tighter budget for the coming year.

And while the proposed budget includes additional money for compensation, the district is still negotiating with its teachers union, the Boulder Valley Education Association. Talks include looking at the sustainability of the salary schedule, which outlines the raises teachers receive for additional years of experience and education.

School board President Nicole Rajpal, who attended a negotiations session Tuesday, said she’s concerned about “how slow the progress has been” in reaching an agreement with the association.

“There’s still a big unknown there,” she said. “I’m feeling a little bit of nervousness and wondering how we get there.”

The board is set to vote on the budget at its June 17 meeting but isn’t required to adopt the budget until June 30.

“We’re going to bring you a balanced budget,” Superintendent Rob Anderson said. “We’re going to meet the needs, and some of the conversations get tougher as you have less revenue.”

The proposed budget doesn’t include big cuts to programs or services but does include fewer teachers and other employees to reflect expected continued enrollment declines. Boulder Valley is projecting a loss of about 175 students next school year, for a total enrollment of 27,738 students.

Chief Financial Officer Bill Sutter said the district will receive an additional $6.9 million in ongoing state per-pupil revenue next school year.

Adding in a one-time carryover balance of $2 million, the district’s general fund will grow by $8.9 million.

The district also expects to save about $7.4 million through a combination of fewer teachers and other employees because of declining enrollment and lower salary costs as more experienced employees retire.On the expenses side, the district has proposed to commit an additional $10.7 million for employee compensation. That includes $1.5 million for health and dental insurance premiums, $2.2 million for the 0.6% cost-of-living raises and $7 million for raises based on additional years of experience and education.

Another $13.6 million in proposed one-time money from the district would pay for targeted literacy and math support, staffing for special education classrooms, bilingual education support, classroom teachers, textbooks, translation services and extra support for high-needs schools. The budget would also include $2.3 million for technology projects, building maintenance, and inflation increases for utilities and various insurance premiums.

After hearing from parents at Louisville’s Fireside Elementary concerned that the elimination of a fourth grade teacher will lead to class sizes of 33 students, several board members said they’re struggling with wanting to pay teachers a professional wage and still have enough money to provide the school programs the community expects.

“We’re spending more on fewer people, and our community is really feeling that,” Rajpal said. “I’m really wrestling with this current budget for this current year, what it’s going to look like for next year and how this conversation is going to continue to get harder — and it’s going to be felt in very significant ways in our community.”