The Phillipsburg School District is creating two different budgets in preparation for possible cuts.
A district administrator says New Jersey Governor Chris Christie established a five-year education cut in 2011 totaling more than $4.5 million -- or around $911,000 a year.
He says the district was unexpectedly given $430,000 in aid for the this school year but doesn't know what to expect for the next year.
The district is preparing two budgets: one with the cut and one without.
Christie will give his budget address in February.