GALVESTON — Despite layoffs and other budget cuts, Galveston public school district is still facing a budget shortfall of $441,000.

The district has been predicting poor finances for years now because of dwindling enrollment, low attendance rates and a state requirement to send back more and more money in so-called Robin Hood funding for poorer districts.

Trustees have laid off 15 employees, eliminated vacant jobs, decided not to buy a bus and restructured departments for a savings of more than $2 million, but they have also agreed to hire more people and expand programs.

Trustees went into their Wednesday meeting with a proposed budget shortfall of $200,000. They agreed to spend more money to buy books and to hire personnel to make the school libraries meet state standards. That plan increased the budget shortfall to $441,343.

They agreed to offset the shortfall, once predicted at more than $7 million, by bolstering the 2008-09 budget with $3.1 million from the district’s reserves and the $2.5 million that Assistant Superintendent Arnold Proctor predicted would be left over from the 2007-08 budget.

Still, when trustees pass a budget in September, it will likely be in the red.

Two years ago, school officials predicted a profound budget deficit for 2007-08, and used the dire forecast as one rationale for a controversial campus closure plan.

Then in August 2007, they passed a balanced budget. Now, as the fiscal year closes, it appears the district has $2.5 million left over because revenue was greater than expenditures.

However, Proctor said there would be no windfall of revenue at the end of 2008-09.

Taxpayers should also expect to see a lower tax rate in 2008-09. Trustees have proposed lowering the tax rate to pay off debt from 13.5 cents to 12.5 cents per $100 valuation.

That would set the total tax rate at $1.16 per $100 valuation. Taxpayers with a $100,000 home will pay $1,160 in school district taxes. Last year, taxpayers with $100,000 homes paid $1,170 in taxes.

Trustees will hold a public hearing on the budget and proposed tax rate at 6 p.m. Aug. 27 in the Lovenberg Administration Building, 3904 Ave. T.