'The $100 million question.' How will Seattle Public Schools close its lingering deficit?

The Seattle School Board is looking again at how to handle an anticipated $104 million budget shortfall.

At a special session this week, district staff said Superintendent Brent Jones' preferred plan would use $42 million of the district’s rainy day fund to help close the massive deficit.

Additional state and levy funding and loan extensions would make up the rest, along with some job cuts at district headquarters.

The budget plan aims to preserve classroom funding. But board member Liza Rankin said that won’t happen because the district canceled plans to close some elementary schools after community outcry.

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“Because enrollment is still going to decline, and because we still have the same number of buildings open, buildings are actually going to receive less staff than they have this year," Rankin said. "Because no changes were made to the way we're allocating resources.”

The budget proposals also would only address this year's gap.

Director Michelle Sarju asked the district’s head of finance, Kurt Buttleman, about the budget beyond next school year.

“So in other words, we don't have a long-term solution for solving the deficit?" she asked.

“Yes," Buttleman replied.

“When is that going to happen?” Sarju asked.

After a pause, he replied: “That's the $100 million question.”

RELATED: Seattle Public Schools' budget woes continue

The district has been riddled with financial challenges for several years, as it has grappled with declining enrollment and rising expenses for things like staffing, special education, and operational costs.

Last year, district officials closed a nearly $105 million shortfall. At that time, multiple board members expressed concerns that the budget didn't adequately address the issues at the root of the district's ongoing deficit spending.

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The board plans a public hearing on the budget plan June 4 and a final vote July 1.