LAS VEGAS -- Budget cuts are hitting school districts in the area.

This week, the Clark County School approved the district's budget.

The board was forced to cut 4.5 percent, mandated by the governor.

The district tried to make cuts without affecting students and teachers, as much as possible.

They're holding off on some projects and not expanding all-day kindergarten.

But officials said another round of cuts would be devastating.

The issue is the governor's office is projecting more cuts to come – possibly, another 14 percent in 2009.

That means schools could lose $130 million a year.

Officials said it could affect classes, school supplies, transportation and more, as they struggle to keep and hire employees.

"We’re looking at everything from class size to employee compensation -- very tough choices to make. We hope we don’t have to go there," said Clark County School District CFO Jeff Weiler.

The district said money will be tight. It expects to pay $9 million more for gas and utilities next year.

At this point, they're looking into all kinds of options and planning ahead for the worst-case scenario.

This week, the Nevada teacher's union and some casino leaders agreed to place a hotel room tax initiative on November's ballot to raise money for education, in light of the budget crisis.