A report by the New York State Comptroller’s office says the South Country School District consistently underestimated budget items by thousands of dollars for years.

The district is now dealing with staff cuts, frustrated parents and empty budget reserves.

"You need to make sure you have recurring revenues for recurring expenditures. Budgeting 101," said Ira McCracken, from the state comptroller’s office.

The state report says the district under-budgeted for items like workers' compensation, transportation and BOCES. The state comptroller says the district also relied way too much on one-shot funding streams like temporary COVID-19 funding.

In a letter to the community, the school board said the new report is in line with the external audits the district has completed. They say they are working on a recovery plan with the state. They also say that if it's not approved, it would require "decisions that fundamentally and permanently reduce what our schools can offer."

"They're talking about cutting the library at the elementary school,” said parent Shannon Marshall. “How are you going to get students excited to read if there's no library?"

A former school board member says the state should step in to help.

“When I was a student, experiencing those things helped me grow as a productive citizen…” said former board member Cameron Trent. “But when we peel away those resources, students go to school with the bare minimum.”

The comptroller’s office recommends that the school board stop relying on one-time revenue sources, stay up to date on trend analysis, and monitor budgets often to make sure the district is on track.