PUEBLO, COLO. -- Pueblo County school employees will forego raises this year and take two furlough days because of budget cuts.

"It's not a happy day for us to tell people they're going to have to take furlough days," Ed Smith, Pueblo County School District 70 Superintendent, said.

The District 70 board approved a three year contract with the newly organized Pueblo County Education Association which does not include any raises or step increases for the coming year.

The district said it expects to save approximately $400,000 by requiring all employees to take two furlough days.  That's on top of outsourcing their buses and cutting personnel at their central office to make up for a $3 million cut.  District 70's budget will be around $50 million for next year, and it has some board members worried.

"Let's increase our mill levy, we don't know how much yet but let's increase it so we're no longer on the floor of the funding formula," William Bregar, District 70 Board Member, said.

The Pueblo County District is already part of the state's lowest funded districts, so come November they could be going to the voters and asking for money.  Bregar said the low funding is already making things difficult in the district, and he wants to make sure they continue to meet the needs of their students.