SAUGUS – The School Committee needs to decide if it is going to reclassify the Belmonte Middle School as a secondary school or keep it as an elementary school – the problem, however, is finances.Last year the School Committee voted to reclassify the middle school as an elementary school for one year because it couldn’t meet the 990 hours of time and learning required by a secondary school. Elementary schools only require 900 hours of time and learning. Superintendent Keith Manville said the school actually averages 955-960 hours.The reclassification was largely a paper issue, but it was not taken lightly among committee members.”Before the end of June you have to decide if you’re going to bring it back as a secondary school which I think is everyone’s hope and desire,” Manville told the committee Thursday.Committee member William Leuci pointed out that reclassifying the school would impact the budget because it would require hiring more teachers.The School Department is hardly in the position to hire more teachers. Manville’s biggest concern right now is, instead of moving forward, his department is on target to take another financial hit. Last year the School Department lost $1.3 million to budget cuts and now it is in danger of losing another $900,000.Town Manager Andrew Bisignani has proposed a $22.4 million budget for the schools as a level service budget. But Manville said to maintain services, which he also called ineffectual, he needs closer to $23.3 million – a difference of nearly $900,000.”If I have to cut $900,000 in services it will be a huge, huge hit on the district,” he said.Last year the district lost 58 positions, mostly teachers. Using the average teacher salary of $45,000, Manville said he would need to lay off another 20 teachers.Even in his wildest scenario – moving the eighth grade to the high school, fourth and fifth grades to the middle school and closing an elementary school – Manville said it wouldn’t close the financial gap.The good news, Manville said, is it looks like the Special Education transportation contract will come in roughly $125,000 lower than anticipated.Also, bids are set to be opened for Kasabuski Arena Tuesday and, if it can be leased out, Bisignani has said it will mean another $850,000 for the schools.Manville said if that happens, in the town’s eyes the School Department will break even. It is hardly the case in the School Department’s eyes, however.Manville has already told the Finance Committee the School Department cannot sustain another year like last year.