The Lancaster Central School District may face a $1.2 million budget shortfall, despite an expected state aid increase for the 2012-13 academic year.

At Monday night’s board meeting at John A. Sciole Elementary School, district officials said the projected increase of $536,523, or 2 percent, in state aid is one positive element to this year’s budget process.

“Great news? No. Good news, yes.” said Jamie Phillips, assistant superintendent for business and support services. “Any increase, considering the last couple of years, is great.”

However, the loss of a $1.7 million, one-year federal stimulus grant adds to the district’s budget deficit and next month, board members will begin crunching numbers.

The first budget work session is scheduled on Feb. 6, and board President David Zalenski encouraged the public to attend and participate in the process so they can be aware of what the district is up against in terms of finances.

“We’ll really need to roll up our sleeves once more as a group,” he said.

Furthermore, the board voted unanimously to approve a resolution endorsing a mandate relief initiative, supported by several districts across Erie County, due to the state’s implementation ofa2percentpropertytaxlevy cap.

“Let New York Work: A Common Agenda for the Common Good,” comprises a six-point plan to reform state mandates, including the state pension system, arbitration, state contract contribution rates and health insurance contributions, and banning future unfunded mandates for public schools.

Additionally, the initiative supports reform to the Wicks Law, which, as it stands, requires that school district construction projects need separate contracts, a provision that can drive up costs. The “Let New York Work” agenda supports changes to reduce the costs associated with construction on public and private projects.

The reform plan also includes the Triborough Amendment, part of the Taylor Law, which requires the continuation of salary step increases for teachers after their contracts expire. The plan calls for freezing step increases when contracts expire, as opposed to a public employer’s salary costs continuing to rise even after collective bargaining negotiations have reached an impasse.

The next board meeting will be held at 7 p.m. Monday, Feb. 13, at the J. Norman Hayes Administration Building, 177 Central Ave., Lancaster. Prior to the meeting, beginning at 6:30 p.m., there will be a budget work session. email: jolenez@beenews.com