NORTH ATTLEBORO - While the budget picture is not as bleak as usual for the coming fiscal year, North Attleboro still faces a number of challenges as it tries to maintain staffing levels and continue providing the same services to residents.

In a meeting with the town's financial team, Town Administrator Mark Fisher said that the town will clearly face some challenges - but that the figures aren't as tight as in the past.

"At this stage in the game, it's a lot better than when I was here two years ago," Fisher said. "As bad as it looks, it isn't as bad as it was in previous years."

Revenue estimates for the 2009 fiscal year, including the local tax levy and state aid, are $77.4 million - about $2.2 million more than the current fiscal year. Those figures include a $600,000 draw on the town's stabilization account, also known as its rainy day fund.

A good chunk of the increased revenue will go toward funding an 8.6 percent increase in health insurance premiums. Thus far, the budget also assumes that no one will be laid off. If that revenue figure holds true, the town will be about $157,180 short of covering a very tight operating budget, leaving no money left over for increases in general expenses or negotiating pay raises with the town's unions.

Fisher said those expense accounts need another look because the town has been making cuts year after year in order to retain personnel.

"We may get to the point where we have all the people we need to work but nothing for them to work with," he said.

The school department is in a similar circumstance, with Superintendent Richard Smith saying that an increase of at least $1 million is needed to avoid laying off staff for the third year in a row.

The $1 million would cover salary increases for all unions with contracts currently being negotiated and additional staffing required to service the town's special needs and non-English speaking students.

Smith is also seeking additional funding, mainly to restore 22 positions that were cut during the past two years. His budget proposal for the 2009 fiscal year totals $36.6 million, an 8 percent or $2.8 million increase over the prior year.

As a result of those staffing cuts, Smith said there are 12 elementary classrooms and 99 high school classrooms with more than 25 students.

It is still early in the budget process and state figures are not yet available, so there could be some good news coming that could help relieve some of the pressure.

Both the schools and the town will put together preliminary budgets for the 2009 fiscal year in January and revisions will be made as state figures become clearer.