FAIRBANKS – Facing a looming $4.5 million deficit, the Fairbanks North Star Borough school board today is set to amend or approve the district’s operating budget for the upcoming school year.

The proposed budget includes cuts to areas in both the classroom and administration, but district officials have focused primarily on the effect the shortfall would have on class sizes. If no additional state funding emerges in the next few months, the district is poised to lay off about 40 classroom teachers because of budget cuts and lower enrollment.