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TUSD's Governing Board — just months ago facing a $20 million projected deficit for next fiscal year — tentatively approved a proposed district operating budget of nearly $362 million Tuesday night.

That would mean an increase of $2.1 million over last year's operating budget, even though the Tucson Unified School District is anticipating a drop in enrollment of more than 1,300 students next year, to about 55,500 students.

District officials, though, were quick to caution that the district will not have more money to spend.

In part, the extra revenue will be absorbed to pay for $1.9 million in higher utility costs and a $1.9 million payment to settle a tax lawsuit brought by Qwest Communications, which claimed that state assessors had failed to accurately assess the taxable value of its holdings.

Before making a final decision on the budget, scheduled for July 8, the board will hold a hearing and public notice of a tax increase.

The action last night, approved 4-1 with board member Judy Burns opposed, essentially sets a ceiling for the budget — the board will still be able to reduce the budget, but won't be able to increase it.

One item still on the table is whether the board will offer raises to its employees. After a particularly pitched battle with educators last year, which resulted in a sickout, the district agreed to a 3 percent pay raise.

"We're not through negotiations, so it's premature to speculate," said Steve Courter, president of the Tucson Education Association, "but we're in the same situation as everyone else. The price of gas is up. So are food prices."

The board unanimously passed a resolution asking the Legislature to postpone a law requiring that students learning English spend four hours a day in segregated language skills classes.

The resolution states that no evidence exists that four hours a day is the optimum instruction time, complains that funding is inadequate and says there has been no recognition of the logistical problems with a four-hour pullout, including extra staff, equipment and classroom space.