The Manhattan Beach school board has moved a step closer to fiscal solvency by shedding more than $4 million in personnel costs -- cuts that will translate into about a dozen laid-off teachers and the elimination of instructional aides in kindergarten through third-grade classrooms.

The reductions for the 2004-05 school year, which came on a 4-1 vote, followed a five-hour marathon session at City Hall on Wednesday night. And though some audience members advised trustees to spend more, trim more or delay a decision altogether, a board majority ultimately endorsed the pursuit of a leaner -- and balanced -- $42 million budget recommended by business chief Stephen McMahon.

"If anyone thought they were going to get a hundred percent of what they wanted in this budget, they are going to be disappointed," McMahon said.

He added that even after this initial round of cuts, a remaining $2.3 million shortfall will require a combination of reductions in supplies and services along with increased revenue.

Casting the lone vote of dissent, trustee Lynette Campbell said she was uncomfortable taking action without knowing what additional cuts were on the horizon.

And, she said, she wanted to know precisely how the district would operate with its smaller staff.

But other board members acknowledged a need to move quickly to meet a state deadline requiring districts to warn credentialed employees of possible layoffs by March 15. Resolutions authorizing actual layoff notices will be presented to the board before that date.

Though officials with the Manhattan Beach Unified School District forecast plenty of shared pain and sacrifice, they also predicted that the end result of Wednesday's swinging ax will be a school system that -- for the first time in four years -- no longer has to rely on reserve accounts to offset deficit spending.

And that's crucial for two reasons: The Los Angeles County Office of Education, which oversees local school budgets, has sent letters warning MBUSD against spending beyond its means. And, equally important, Manhattan Beach's reserves are starting to run low.

To bring expenditures back in line with revenue, the board approved cutbacks nearly across the board. They included:

• The elimination of instructional assistants -- the full-time equivalent of about 20 -- from kindergarten through the third grade. The assistants will remain in grades four and five, where class sizes are larger.

• The dismissal of a half-dozen teachers and 70 percent of the security staff at Manhattan Beach Middle School.

• The furlough of about five teachers at Mira Costa High School as well as a 34 percent reduction in clerical support and a 60 percent reduction in the security staff. McMahon said he had some concerns about the latter cut and would consider reducing the number of entrances at the high school or possibly contracting with an independent company at a cheaper rate.

• And the loss of several positions at the administrative level, including a grant writer and the directors of curriculum, accounting and food services.

"The reality," said Superintendent Gwen Gross, "is we will have to do much more with fewer people."

Before the votes were cast around 11:15 p.m., board President Bill Cooper and trustee Campbell each made last-ditch efforts to spare some positions.

Campbell, for example, pitched saving the director of curriculum and Cooper lobbied to keep additional instructional aides.

Under guidelines set by Cooper, however, each salary removed from the chopping block required an equal or greater cut in another area, and the board had trouble reaching consensus.

Urged by student trustee Ashlee Stegen, board members also took a second look at Mira Costa's security cuts.

Though no positions were restored, board members agreed to make security the top unfunded priority, meaning guards at the high school are now first in line should more money become available.

But no matter what board members decided, it was clear they wouldn't please everyone in attendance.

Members of the teachers and classified employees unions pleaded with trustees to rethink some of their cuts -- or at least delay a decision pending further discussion.

Teachers are already working grueling hours during the day, at night and on weekends, said Kevin Post, president of the Manhattan Beach Unified Teachers Association. Laying off instructional aides, he said, would further add to their workload.

"We must not rush to this decision," he said.

Margie Strike, a labor relations representative for the California School Employees Association, said she was "concerned and disturbed" by the cuts to security guards.

"These are people that are already stretched beyond their limits," Strike said.

But some expressed doubts that the district could find another $2.3 million in service and supply savings, and they urged trustees to shear even more from the personnel side, which accounts for 84 percent of the general fund.

Dave Watchfogel, a former Manhattan Beach school board member, warned that the district could face a state takeover if board members failed to curb spending. He also called on students to do the little things that help save money, such as picking up after themselves.

"You need to tell those kids that they need to cost us less, study harder, don't be a pain in the backside and appreciate every damn thing given to them," he said.

Superintendent Gross and business chief McMahon were brought in last fall to reverse the trends of overspending that have plagued this affluent district for the last several years.

With the personnel cuts on the table, McMahon sought to answer any skeptics by promising he'd free up another $2.3 million by re-examining things like purchases, utility costs and lease agreements.

"I realize that I'm asking you to take a leap of faith," he told the board. But, he said, "I've done this a long time. We'll get there."

Campbell, however, did not appear to be convinced.

"This is such a critical thing," she said.

"I have to say it was blind faith that got us into so many of the problems we've had in the past."