According to the proposed budget, the state government will give the school $3,191 per student enrolled for 2005 and $3,198 for 2006.
There will be a mandated salary increase of 1.5 percent for the staff for 2005, and then for the 2006 fiscal year there will be a 3-percent salary increase.
The budget was approved unanimously.
The board also approved the 2004-2006 FRYSC (Family Resource Youth Service Center) grant application.
According to the Kentucky Office of Family Resource and Youth Services Centers website, the primary goal of these centers is to enhance student ability to succeed in school through the removal of non-cognitive barriers to learning.
These centers are designed to promote the flow of resources and support to families in ways that strengthen their functioning and enhance the growth and development of each member.
The FRYSC program took a $3,000 cut this year and the balance will be the same for next year, said David Johnson, superintendent of Harlan Independent Schools.
"Additional cuts this year are highly unlikely," he said.
Money at the end of the year, or "carry-over funds," will be left alone and will not be taken for state government use, he said.
"We are going to have to tough it out. We are going to have to make some tough decisions locally," said board chairman Joe Meadors.
"The program will begin to feel some of the recovery in 2006, economically," said Johnson.
In other business, the board:
n authorized the use of the Francis-Hamlin Auditorium for a piano recital.
n accepted a bid on surplus property, including a used pickup truck and chairs.