PINE VALLEY, Calif. -- Cynthia Johnson and her family recently moved to Pine Valley from Boulevard, mainly because of the elementary school.

"It's kind of the whole point of wanting to be in Pine Valley," said Johnson.

Johnson owns Pine Valley Java and set up her business within walking distance of her home, her community and the school her child attends.

"I don't want my kid to get on a bus and go," said Johnson.

Johnson might not have a choice as pending state budget cuts and declining enrollment means the Mountain Empire School District has to make some tough decisions.

"(Options are) layoffs, possible school closure," said Pine Valley Elementary School Principal Diedre Carter.

Carter said she feels the pain more than most. In addition to being principal at Pine Valley Elementary, she is also Descanso Elementary School's principal.

"At Descanso, I had to give a teacher her pink slip," said Carter.

That teacher, Angie Robbins, used to be an aide and could not wait to come back to teach.

"This year is her dream year. To work in her dream school and she gets one year of it … and it's gone," said Carter.

If Pine Valley Elementary does close, four more teachers in the district will likely lose their jobs.

"Eighty-seven students would have to come to Descanso," said Carter.

Another option would be to combine three grades in each class, and to lose one teacher in order to keep Pine Valley open.

"It is done in other schools in the county, like Spencer Valley, but it's never anyone's first choice," said Carter.

Those possibilities remain if the state's 10 percent cutback of funding becomes reality.