"We took their recommendations and looked at them very carefully and have done some research with neighboring school districts and organizations, and are prepared to make some recommendations to the board of education," Milford Superintendent John Frye said. "They have provided a couple of ideas for us to explore, and we will do that."

Citizens for Excellence compares its work to the new Budget Task Force that will dissect the finances of Cincinnati Public Schools. The difference is, Cincinnati Superintendent Alton Frailey asked Mayor Charlie Luken last month to form the task force of local citizens, while the Milford group organized itself out of concern for the district's rate of spending.

The group of 41 includes a cross-section of volunteers with expertise in business, finance, law and marketing; senior citizens, people with and without children in the district.

"These are people that care very deeply about our schools, but they recognize that the biggest issue that faces our school district is a financial one right now," said Jason Sims, co-chair of Citizens for Excellence. "Milford School District is not alone."

The group was organized in August 2003. Even though the district passed an operating levy in May of that year, residents started looking ahead and saw financial trouble.

"If everything were to stay within (the board's) forecasted numbers, they're going to be asking for an eye-popping (millage) number," said Sims, a business attorney with Dinsmore & Shohl and parent of two Milford students.

In June, the group presented a report and 25 recommendations to the board. The two key recommendations, Sims said, are a voluntary two-year early retirement incentive package that could save $2.2 million over five years, and program-based budgeting, based on a model developed by Steven Hinshaw, treasurer of Vandalia-Butler City Schools.

Vandalia-Butler saved about $1 million in the first year it was implemented, with a $26 million budget, about a 3.8 percent savings. It's difficult, Sims said, to determine the exact savings if Milford implemented the model. The district's 2004-05 budget is about $51.7 million.

Most districts divide budgets into cost centers, such as administration, teachers and transportation, Sims said. But Hinshaw identified everything as a program and what it costs to run that program, such as first grade, high school English classes and sports. He then plugs in the costs to run each.

"It's an excellent management tool, because you can now quantify in dollars and cents what it costs to operate each of those programs," Sims said.

Hinshaw also created a bull's-eye concept in prioritizing programs. The student is at the center. The closer the program is to the student, the higher the priority. Cuts occur first in the outer rings farthest away from the student.

Milford, with 6,200 students, adds about 100 students every year, so the cost of doing business is going to increase, Frye said. The citizen's group has provided ideas for reducing the increases in costs.

The Milford Board of Education meets 7 p.m. today at Milford City Council chambers, 745 Center St.

E-mail ckranz@enquirer.com