Pittsburgh Public Schools administrators last night outlined a 2008 general fund budget that would hold the line on taxes while cutting 37 positions on top of the 203 already eliminated since spring.

The district tentatively plans to spend $3.5 million less in 2008 than was originally forecast for 2007 but still would have to tap the reserve fund to balance the budget, Chief Financial Officer Christopher Berdnik said.

Mr. Berdnik projected 2008 revenues of nearly $508 million and expenses of $525.5 million.

The operating deficit would be closed by taking nearly $17.5 million from the reserve fund, leaving a balance of $50.8 million.

While much has been done in the past two years to stabilize the district's budget for the long term, much work remains, Mr. Berdnik and Superintendent Mark Roosevelt said.

Officials have warned that they must find a way to narrow the gap between revenues and expenses to avoid insolvency down the road.

"The message is clear that we need to continue to work to cut costs in this district," Mr. Berdnik said.

After the 2005-06 year, the district closed 22 schools because of declining enrollment and academic and financial reasons.

Since then, the district has made related cuts in programs and personnel, including the elimination of about 203 positions -- including about 130 teacher slots --last summer. The amount of savings from those cuts was not immediately available.

The plans Mr. Berdnik outlined last night included another $8.2 million in cuts -- $4.5 million at district schools and $3.6 million at central office. The cuts include the elimination of 37 more positions.

Some of those 37 are vacant; others are filled. They are spread across departments.

The proposal includes saving $66,300 from the elimination of a vacant specialist's position in human resources to saving nearly $206,000 through the elimination of nearly 14 swimming program workers.

Mr. Berdnik also said the district could save $1 million in energy costs next year by selling as many surplus buildings as possible.

The district has 22 buildings to sell and last month began the process of seeking bids for one, the former South Vo-Tech school building on the South Side. Even though the buildings are no longer used for classes, the district still heats and maintains them and would save operating costs by selling them, Mr. Bernik said.

In addition to the $8.2 million he outlined last night, Mr. Berdnik said he'd continue seeking another $10.7 million in cuts as 2008 unfolds.

If successful, he said, that would reduce 2008 expenditures from $525.5 million to $514.8 million.

That, in turn, would reduce the operating deficit and the amount that would be taken from the reserve fund.

Mr. Berdnik's presentation was a glimpse of the 2008 preliminary budget, to be released Nov. 20.

Administrators also presented a proposed 2008 capital budget of $41.7 million.

That figure reflects the first phase of improvements to the former Reizenstein Middle School building in Shadyside, the former Milliones Middle School building in the Hill District, the Pittsburgh Frick 6-8 school building in Oakland and the Downtown building housing the Pittsburgh High School for the Creative and Performing Arts.

As part of his high school overhaul, Mr. Roosevelt wants to open a International Baccalaureate school for grades six through 12 at Reizenstein, create a university-affiliated 6-12 school at Milliones, open a 6-12 science and technology school at the Frick building and install the middle grade arts magnet in the same building as the high school arts program.

Some board members complained that other important projects would be put on hold for 2008. Daniel Romaniello Sr., for example, complained that 2008 capital plans do not include more space for Pittsburgh Brookline PreK-8.

Mr. Romaniello said Brookline parents have been patient so far. But if put off, he said, they could be "storming the castle gate."

A public hearing on the budget will be held Dec. 3. The board will adopt a budget Dec. 19.