Libby School District 4 members on Monday received an explanation about mills, how they are calculated and then had an exchange about district finances.

Lincoln County Treasurer Nancy Trotter Higgins provided board members with an explanation about the mills, even offering examples from tax bills.

District 4 Superintendent K.W. Maki said the district is on the cusp of a $770,000 deficit for the 2012-’13 school year.

Maki cited declining enrollment and escalating costs as the reason for the forecast deficit.

During the open forum that followed concerning the future of former elementary school Asa Wood, Libby Elementary School Principal Ron Goodman expressed concern about the district expending revenue on the now-vacant school when the likelihood of staff cuts were being considered.

Goodman’s sentiment was echoed by other educators attending.

While board member Bruce Sickler said he is concerned about the possibility of staff cuts, he does not anticipate money spent on Asa Wood will dramatically affect the overall budget.

“Whatever we do with Asa Wood will not balance this budget,” Sickler said, indicating he did not want to see boards over the windows of the 53-year-old school.

Board member Les Nelson agreed.

“I don’t think we want a boarded up building in the center of town. A building that is boarded up will deteriorate,” Nelson said.

At 4:30 p.m. Monday, the board will continue its discussion on mills as attorney Elizabeth Kaleva will address the board and discuss mill-levy strategies.