Anticipating a $2.3 million deficit for 2004-05, the Acalanes school district got good news from Sacramento last week: It's only $1.7 million in debt.

That's still a lot of green.

More than a hundred parents, teachers and students crammed into Acalanes High School's library Tuesday for a town hall-style meeting designed to give them insight into funding difficulties and a voice in brainstorming solutions, a scant month after Acalanes trustees nixed the idea of a March parcel tax bid.

The overwhelming favorite? A June parcel tax bid that might allow the district to salvage programs for the next school year.

"We don't have time to wait," said Kathy Bowles, chairman of the Lafayette Arts and Science Foundation.

Two winters of midyear budget cuts totaling $1.3 million, plus soaring health benefit premiums and a nonexistent cost-of-living increase, have plunged the usually stable district into roiled budgetary waters.

The governor's new budget proposal for 2004-05 brings some respite. It grants a 1.84 percent cost-of-living increase and "equalization" money -- funds to make up some of the funding disparities between districts -- which will amount to $260,000 for Acalanes, if the Legislature passes this particular formulation.

That's a big if.

The presence of Proposition 57, the controversial $15 billion economic recovery bond on the March ballot, adds to the already volatile situation. If the bond fails, that money must be cut from the state budget.

"Fasten your seat belts," said trustee Margot Tobias.

This year, it took massive program cuts and a $720,000 bailout from parent clubs and education foundations to balance the Acalanes budget.

Next year, it will take more, but several parent clubs and foundation board members appeared poised to up the ante as high as $1 million.

Moraga Education Foundation executive director Heather Gevertz said the community needed to focus on the missing $700,000.

Focus, they did. Foundation dollars, corporate contributions, long-term pledges and revamped health plans were jotted down. A merged K-12 Lamorinda-Walnut Creek school district was suggested, and pooled parcel taxes broached. The campaign volunteer list lengthened every time someone asked what everyone was waiting for.

Assistant superintendent Chris Learned slowly circled the room, watching as people worked and softly noted, "This is an amazing community."