LYNN – As the School Committee inches closer to the 2009 budget season, Superintendent Nich-olas Kostan has again painted a bleak picture of the financial road ahead, but speaking to the School Committee Thursday, Kostan vowed to make intelligent cuts that will preserve the infrastructure of the successful programs within the school district.The struggling economy across the country, coupled with skyrocketing energy and health insurance costs have crippled city and state budgets virtually everywhere, and Lynn is no exception. With step raises and insurance costs, Kostan estimated that staffing would take up 80-85 percent of the budget in 2009.Add those costs to an obligation to pay for energy, food and technology supplies, and the department has very little wiggle room to continue funding the programs and staff members that are most beneficial to students.”It is no surprise that we know we are going to have a rough run – the economic indicators are not promising,” said Kostan. “We just do not have the resources in place that we have had in the past. We have to create a starting point for meaningful budget discussions.”Throughout fiscal 2008, the School Department has put forth an effort to reduce spending, eliminating vacant positions and cutting back in some budget line items.Kostan has met with principals at every school to discuss staffing and budget issues, and will meet with Mayor Edward J. Clancy Jr. this week to discuss the department’s “obligation to the city.””We have to create a starting point for meaningful budget discussions,” he said. “We have already begun to stabilize our organization throughout this year, and I have been meeting with principals about staffing. We all have to work together to get through this.”If there is any positive budget news, it is that Gov, Deval Patrick’s budget called for a $6 million increase in Chapter 70 local aid, and the House version of that spending plan did the same. While those numbers spark optimism, there is still no guarantee that that funding will come when the final budget is approved later this year. Not knowing exactly what the funding looks like makes it difficult for administrators to discuss spending for 2009, but Kostan said the department must start thinking about the future, and plan for the worst.”If there is any good news in this, it is that last week the House indicated that their budget would reflect the Governor’s Chapter 70 funding,” Kostan said. “But that is still very preliminary, and we would still experience a deficit of several million. We have to hope for the best but prepare for the worst.”Kostan has already indicated that staff and program cuts were imminent in 2009, and Thursday warned parents and teachers to expect larger class sizes next year.One thing the Superintendent did promise was to look closely at every program and line item, and that the entire budget team would work to preserve successful programs that have surfaced over the last year.”The budget is tough, but we want to maintain the infrastructure of our schools. We have had a lot of success and some great programs for the students,” he said. “I do not want to eliminate key programs that have been good for our students. We are going to work to protect the gains that we have made, protect the staff development and protect the infrastructure of our schools.”We are not trying to panic here, but we have to be realistic. This is going to be a tough one. I am not going to kid anybody. This one is going to be really tough.”