The School Committee Wednesday approved a revised $26.7 million School Department budget after Town Administrator Mark Andrews and Superintendent Dr. Barry Rabinovitch agreed on budget cuts necessary to close a $2.6 million gap between the town and School Department's proposed budgets for next year.

Though the School Committee commended Rabinovitch and Andrews for coming to an amicable agreement, members expressed disappointment with the budget, which cuts funding for supplies as well as teaching positions.

“For me the problem is equity,” said School Committee member Cliff Sylvia. “I can't be impressed with a budget that is not servicing our kids, and whenever we cut personnel we're not servicing our kids.”

The $26.7 million budget still leaves a roughly $365,000 shortfall in the school budget. Rabinovitch said he is examining ways the gap can be filled.

If the gap cannot be filled, he said he'd have to cut nine additional secondary positions or cut all extracurricular offerings not supported by grants.

Because the district must notify teachers by June 1 if they will not have a position in the coming school year, Rabinovitch said he'd have to send out notifications in anticipation of a budget deficit.

School Committee members, though understanding its necessity, were frustrated by the idea.

“You run the risk that they're going to go find another job,” Sylvia said.

Rabinovitch pointed out that though he was not happy about the budget, the cuts were necessary.

“If I thought that the town had [extra] money, I'd be here asking for it,” he said. “[Fiscal year] 2013, I believe, will be the worst year when we look at state aid for the town. ... I do not believe the extra money is there.”

The budget uses a one-time influx of funding from the Health Insurance Trust Fund. Under a self-insurance plan, the town and employees pay premiums into the town's trust fund. All health claims are paid from the trust fund, with insurance companies involved only in claims processing. Unlike a traditional insurance plan, the town saves money if claims cost less than expected. The fund currently contains money above the recommended amount it should always contain.

Rabinovitch and School Committee members noted that the one-time use of that money could lead to a problem in next year's budget, though the superintendent said he believes changes in state aid calculations would be forthcoming and the town could see more money from state Chapter 70 education funding for the following fiscal year.

The revised budget will need to be approved at Town Meeting, which will convene on Monday, April 25 at 7 p.m. in the Wareham High School auditorium. However, Town Meeting will be asked to postpone voting on all budgetary articles as the town works to straighten out a $919,000 financial discrepancy discovered by auditors early this month. Town officials estimate that the financial matters will be able to be addressed on May 23.