COSTA MESA

County education officials have warned Newport-Mesa Unified School District to develop a plan to avoid having any more budget deficits; the district has projected a $4.8-million shortfall.

“They are not going to go bankrupt this year, but they have to do something within the next couple of years,” said Wendy Margarita, director of business services for the Orange County Department of Education.

In March, trustees created a subcommittee of three board members to keep an eye on the district’s funds. The committee was created after the district learned it may have to deplete general fund reserves to below the state-recommended 3% this year. Michael Fine, assistant superintendent for business services, said he did not think the district will have to make massive cuts to balance the budget. Many of the strains on this year’s budget are one-time expenditures.