LATHROP — The Lathrop-Manteca Fire District is more than $1 million away from a balanced budget, and several positions may be eliminated if district officials can’t find the funding.

During an Aug. 6 study session by the fire district board, officials disclosed they needed more money than previously predicted to close a hole in the budget.

Funded by property taxes, the district’s revenues are much lower this year. Foreclosures, the state seeking a bigger chunk of those taxes and lower property assessments are all playing a part.

Among the money issues facing the board is what to do about eight unfilled fire safety positions — a chief, three division chiefs, a fire inspector and three firefighters. The district would like to fill those positions, but the money might not be there.

Cutting those positions from the budget would not only be painful for the district but also produce more work in the future. Board member Gloryanna Rhodes said that submitting a budget to the state without a minimum of $100,000 for each vacant position, including benefits, would in turn dissolve them. That means a series of approvals would be needed to add the positions in future budgets.

The district operates with 29 firefighters and three administrators, and district officials said they weren’t willing to close the vacant positions, though doing so would bring the budget closer to a balance.

“You’re going to have to decide what level of service you want, not for the city but for the district,” Fred Manding, interim fire chief, said.

Also contributing to the shortfall is the expiration of a grant from the city of Lathrop.

Over the past three years, the district was able to keep six additional firefighters with a grant from Lathrop for $1,092,177 that started in 2006. Angela Manding, the district’s business manager, said the additional firefighters were placed at the behest of the city to increase staffing at fire stations 31 and 34. But that grant has run its course.

The grant originally was given with the thought that by 2009-10, tax receipts would have increased to make up for its expiration, according to Angela Manding, who added that no one predicted property revenues would drop so far.

In hopes of keeping those additional firefighters and the option to fill the vacant positions, Rhodes suggested the fire district present a deficit budget to the county and send a bill to the city of Lathrop to make up the cost for the additional firefighters.

City Manager Cary Keaten said the city couldn’t afford to pay for the firefighters that were covered by the previous grant.

“The city obviously doesn’t have the revenues to do that sort of thing right now,” he said. “We’re hurting. We’re upside down on our budget.”

Rhodes suggested the matter be taken to the residents served by the district. She said they should be aware that fire department response times might change from five minutes to seven if the city chooses to pay for other projects, such as renovated parks. She said elected officials should also be held accountable if they have to cut firefighters and increase response times.

Board member Manuel Medeiros suggested the district consider a 5 percent pay cut across the board, but Fred Manding pointed out that his department has been without a pay raise for five years.

Bennie Gatto, the chairman of the district’s board, suggested the district consider borrowing the needed money from fire facility fee funds, which would cover the deficit minus the vacant positions. Those funds come from a fee the fire department charges to businesses during the fire permit process.

“That is the only option,” Gatto said.

The board plans to discuss the budget again at its next meeting Thursday, Aug. 20. The deadline to submit a budget to the county is Aug. 31.