Flat federal funding could mean fewer services for Head Start in Bismarck.

Operation costs for the program surpass the funding for the program. Most of the nearly $65,000 difference is because of increases in salaries and benefits, said Laurel Nybo, the Bismarck Early Childhood Education Head Start coordinator.

"We're to the point, I don't know if we'll be able to keep up without cutting back on staff and kids," Nybo said.

The biggest chunk of the program's budget is salary and benefits, which are based on the Bismarck Public School's negotiated agreements and pay scales. Head Start uses those because the district is its fiscal agent. The program provides preschool and other child services for income-eligible families.

The program has cut programs and staff over the years to make up the difference. Now, it may need to reduce the number of children it serves, as well as cut staff.

The program receives about $1.4 million from the federal government. This is about $400,000 more than what it received in 2000. When adjusted for inflation, the amount of federal funding received today is equal to $1.1 million in 2000 dollars, according to the Bureau of Labor Statistics consumer price index inflation calculator.

President-elect Barack Obama made a campaign promise to increase Head Start funding. The Bismarck Head Start is planning with flat-funding in mind.

To compensate for the budget difference, the program administrators are trimming services, such as the extended day program, and will make a a new grant application that allows them to reduce the number of children it serves, while retaining funding.

"For the first time, we can reduce kids without losing money," Nybo said. "The only way to increase federal funding is by increasing the number of kids served."

The program administrators will need to develop a long-term plan that specifies how long the reduction would last and how many children would be cut from the program.

Some staff positions already have been absorbed over the years. Four years ago, the extended day program went from a teacher-run program to an instructional aide program. Now it is at risk of being eliminated.

Three years ago the education and disability manager had hours reduced, and this year the position was eliminated after the person took another job in the district. The responsibilities for that position were taken on by Nybo and a secretary.

Two years ago, the summer program was eliminated, staffing was reduced for home-based services and the outreach manager's hours were reduced. Last year, the outreach manager position was eliminated and home-based services were completed with fewer staff.

The Head Start program also eliminated its fiscal officer and transportation manager when the employee retired. For its transportation needs, it paid the district for a transportation aide.

Head Start receives in-kind services from the district. This includes transportation, its building space and a portion of the salary for some Head Start employees.

North Dakota does not appropriate money to Head Start, but 18 states, including Minnesota, provide funding for Head Start programs. There are 14 Head Start programs in North Dakota that serve almost 3,000 children between 3 and 5 years old.

(Reach reporter Sara Kincaid at 250-8251 or sara.kincaid@bismarcktribune.com.)