SHERIDAN (AP) - Sheridan County School District No. 2 will likely be forced to cut more employees this spring to compensate for another drop in enrollment, Superintendent Craig Dougherty said.

Enrollment is down 52 students this year, from 3,158 to 3,106. The district lost 60 students last year and 29 the year before, and has had a 14-percent drop in enrollment the past 10 years.

The losses translate into a $425,000 drop in state funding and will likely result in more staff cuts next spring, though Dougherty would not specify how many might be necessary to recoup losses.

The district cut eight staff positions last spring to balance the budget, and another nine were announced in spring 2002.

Dougherty said he regrets recommending any staffing cuts, fearing it will eventually lower the quality of instruction and student performance.

"We're a top performing school district … and our teachers make it that way," he said. "I'd love to see more business and industry here in Sheridan to provide jobs with (good wages) to keep our families here, but this is the reality we have to deal with this year."

Eighth graders make up the district's largest class this year, with 275 students, with high school seniors not far behind at 273. This year's kindergarten classes are 28 percent smaller than last year at 199 students.

The Wyoming School Facilities Commission, meanwhile, is recommending the district build a new school to replace Highland Park elementary, saying the current building is overcrowded and no longer suitable as an educational facility.

It would cost about $7 million to build a new school, and between $4 million and $5 million to add on to the current building, Dougherty said. The state will pay for the entire project, including land and utilities.

The district must forward a decision on the recommendation to the commission by December or January.