FERNDALE, Wash. -- Whatcom County's second largest school district has announced it will have to run a deficit in the upcoming school year. The Ferndale School District Board of Directors held a public forum Monday to discuss its proposed budget for the upcoming school year. Ferndale Schools Superintendent Linda Quinn says they're expecting a $1.9 million deficit due to rising costs and declining enrollment. Quinn says Ferndale schools did not cut any educational programs for students. The district reduced staff in May, and will be closing Mountain View Elementary School next year in an effort to consolidate resources and save money. The Ferndale School Board will hold another public meeting at 6:30 p.m. Thursday before the board is expected to pass the upcoming budget.