Budget gaps abound, but one thing’s clear — grade schools at Community Consolidated School District 181 will not be carved up into grade level centers.

But the dreary financial forecast could lead to the closing of a school in the coming years. District officials said the economy, the Consumer Price Index and interest rates on district investments are the causes behind the budget troubles.

More than 100 District 181 residents applauded when the School Board made the decision not to go with grade centers at a meeting Tuesday at Oak School in Hinsdale.

Board members said they will continue to consider closing an unspecified school, as well as other revenue enhancements and expense containment options in the coming months.

“I think we can take that one off the board,” said board President Marc Monyek after polling the board about the option to create grade level centers.

According to an unofficial financial report, the district expects to see a $3.8 million budget deficit in 2011, a deficit that could grow by as much as $1.5 million annually through 2015. Revenues will increase at a slower pace, officials predict.

The district currently has a fund balance of $20 million, but if the district were to use that money to cover the growing deficit, the fund balance would be erased by 2014 fiscal year, according to the report.

The School Board heard a presentation given by district administrators outlining several possible options for the district, including creating grade level centers, closing one school and redistricting school boundaries.

The presentation also included a list of potential cost reductions and revenue enhancements the board will ponder as it moves forward with its budget plan for 2011 and beyond.

“We’ve already made the easy decisions to balance the (2010) budget — now we have to make the harder ones. The next round will be challenging,” Monyek said.

By the next meeting, administrators  are expected to present a more detailed financial laundry list, including projected savings from cuts to administration and district office operations, teacher attrition and staff reductions and others.

“I would like to see where the cost cuts would be,” Board member Russell Rhoads  said. “I just feel I need more information.”

The School Board directed staff to provide several budget scenarios to serve as a basis for future budget considerations, ranging from balancing the projected $3.8 million 2011 budget with major cuts to reductions as little as $500,000 annually.

“I’d like to see a list, by category, ranging from $500,000 to $3.8 million,” said board member Andrew Schmidt.

Trying to cover a $3.8 million budget gap in one year may be unrealistic, board member Yvonne Mayer said, but she would like to see a plan to achieving that goal.

The School Board told staff to proceed with more details on the possibility of closing a school, as well as other options such as increased user fees.

“The estimated cost savings could be from $1.3 million to $1.4 million to close a school, with a significant savings in reducing the number of full-time teaching positions by 21,” said Robert Sabatino, District 181 interim superintendent.

Closing a building would also require modifying some school boundaries, officials said.

“The upside is that closing a school, while diminishing the neighborhood school concept, maintains it as well,” Sabatino said.

Administrators did not say which school might be the target for closure, or which one would result in the most savings.

“It would be premature to identify the buildings being considered,” Sabatino said.