MADISON, Wis. -- The Wisconsin Legislature's Joint Finance Committee on Wednesday night is debating the allocation of state money for schools.

With cuts in state school aid and caps on how much schools may raise taxes both on the agenda, some schools are preparing for the worst and considering drastic measures such as consolidation.

The cuts come at a time when many schools have been begging for school funding formula changes. Now they're looking at possible cuts of hundreds of thousands of dollars.

Two rural school districts in Marquette County said that giving students a quality education is becoming increasingly difficult in tough budget times.

"We have been making some significant cuts over a period of time. I've been in this district for five years and during that time we've been reducing our budget by about $250,000 a year on average, and that's a significant amount of money," said Westfield District Administrator Roger Schmidt.

Westfield schools have cut back on staff, among other changes.

"We've downsized our administration, so a couple of us are at two buildings. That's a big difference," said Westfield and Neshkoro Elementary Principal Cory Parman. "We're not in the buildings we've been in for years. We move around a lot."

The Montello School District had to cut arts and agriculture programs, even after a referendum passed.

"Every cent for us counts right now," said Montello District Administrator Jeff Holmes. "I understand that the state isn't going to have any new money, but taking away money from us is making a bad situation worse."

The threat of state school aid cuts now has the two districts considering consolidation.

"Eventually we're going to be looking at whether we can sustain the outside schools," said Schmidt, of the Neshkoro, Coloma and Oxford outlying elementary schools. "That's a significant factor, one we don't want to consider at this point. That's why consolidation is a consideration for us."

"The best case scenario right now would be to remain a viable district if we can find a way to do that," said Montello School Board Vice President Maureen Krivanek. "But with declining enrollment and having to make more cuts depending on what comes in with the state, consolidation would be our best effort right now."

It would mean major changes for both districts, but it might be the only way for them to stay afloat.

"The final question that both communities should be able to answer, 'Is it the right thing for our kids?'" said Holmes.

Westfield and Montello, along with school districts across the state, will wait to see if the total 3.5 percent cut gets approved by the Joint Finance Committee Wednesday. The two districts will then discuss over the summer with the community whether consolidation is the right way to proceed.