COEUR d'ALENE - Time is running out for Idaho school boards and teachers who have not reached contract agreements for the next school year.

The clock started ticking when the governor signed off on next year's education budget, which included a statewide financial emergency declaration and a $128 million cut in funding for public schools.

St. Maries trustees held a due process hearing Thursday, and the Kootenai district held one Friday.

"We were extremely under the gun," said Rich Lund, the interim superintendent in the Kootenai School District in Harrison.

The financial emergency provision in Idaho's education law allows struggling districts to negotiate salary cuts and furloughs with teachers, something not allowed by law without a financial emergency declaration.

The due process hearing is a final step required by law before a district can impose its "last best offer" on teachers.

"It's kind of a sad thing," Lund said.

The small district has about 42 people it employs, and a student enrollment of 237.

"We've got excellent, excellent employees. I don't think you could find any better teachers," Lund said. "The board's negotiating team does not want to cut jobs."

Lund said the board's "last best offer" to the teacher's association included five furlough days, a hike in the cost of insurance to employees and a contingency that salary cuts would take place if a mid-year holdback in state funds is ordered.

"It's just tough times. Every school district is going through them," said Kootenai's former superintendent, Ron Hill.

Hill retired in January, after 24 years as superintendent, but returned recently to help with the financial situation.

Kootenai district taxpayers overwhelmingly approved a $250,000 supplemental levy at the polls there on Thursday, easing some of the district's budget pain.

Hill said he was against the Legislature's decision five years ago to shift school funding from property taxes to sales tax.

"I strongly opposed that change because of what could happen, and it has happened," Hill said. "The economy went upside down, and consequently, we as school districts have no way to raise money other than running supplemental levies."

School boards in the Lakeland, Post Falls, Coeur d'Alene and Plummer-Worley districts were able to reach contract agreements with their teachers last month.

Agreements in all four districts include salary deductions reached by furloughing five to six days from the teachers contract.