The Indiana State Board of Education is offering guidelines to local communities for cutting their school budgets to meet declining state revenues.

The board is sending a checklist to school districts across the state that outlines options communities should consider, including using fees to pay the costs of sports and other extracurricular activities. Other options include freezing employees' salaries and outsourcing cafeteria, janitorial and transportation services.

Schools will lose about 3.5 percent of current state funding in 2010, starting with their January payment. The State Board of Education had recommended the cuts begin in January.

State Superintendent Tony Bennett says school districts can find 3 percent savings without laying off teachers.