All-day kindergarten classes proposed for this fall are not going forward, an elder will not be hired, the price of milk for students will rise and property taxes will still go up by 5.89 per cent under changes trustees made to the draft Winnipeg School Division budget on Monday.

School board chair Mark Wasyliw said the finance committee started shaving away at the budget last night to bring the potential tax increase down from 6.4 per cent to 5.89.

"We had to take a number of things out of the budget as a result of that, including two full-day kindergarten classes. We were to hire a second aboriginal elder this year; we're putting that off," Wasyliw said.

The division's milk program is also taking a hit.

"The Winnipeg School Division is basically the only school division in Manitoba that charges 10 cents a container for milk for students. We've been doing that for 39 years, and we're raising that price to 25 cents a container," Wasyliw said. "Which we're doing with reluctance, but our hands are tied."

The cuts will not impact Spanish, Cree and Ojibway immersion programs slated to start in the fall.

"Those are cost neutral because basically those students are just getting shuffled from another program in the Winnipeg School Division, so there's not any significant increases in costs for those programs," Wasyliw said.

Finance chair Chris Broughton said Monday that the school division faces a "dire" financial situation — an unexpected $5.5 million budget shortfall.

An unprecedented number of commercial property owners downtown have appealed their property tax assessments and effectively reduced the division's tax base by $158.6 million, WSD officials said.

Wasyliw said 85 per cent of the division's budget is made up of salaries, and the choice is a tax increase or cutting 60 teachers.

"So if you're able to get to a zero tax increase, you're not able to do that without firing teachers," Wasyliw said.

The school division has until March 15 to finalize its budget.