The Hood River County School District board heard a report on budget development for the upcoming fiscal year.  District Superintendent Bill Newton told the board they are continuing the efforts that started last year to reduce spending to reflect a continued downward trend in enrollment and deal with increased pension and operational costs.  He says the proposed moves this year include making the Cascade Locks Elementary administrative structure a half-time principal/half-time specialist position, and moving early intervention and early childhood special education from Pine Grove to Mid-Valley Elementary.  Newton pointed out reduced enrollment at Mid-Valley makes the space available, while Pine Grove is aging with increasing maintenance and upgrade costs.  Also proposed:  reducing discretionary spending on technical hardware and software refreshes, and continuing to use retirements and resignations to bring staff size in line with student enrollment.