This is a tough budget season for all governmental bodies, including the North Penn School Board. In a website posting, Business Administration Director Robert Schoch says local revenue sources are down with little hope of an immediate rebound to prior levels, state revenues are down, and federal stimulus money runs out next year. At the same time, health insurance premiums keep rising along with the employer contribution to the pension plan. He calls for innovative cost-cutting and revenue-producing efforts without providing specifics. The Montgomery County Commissioners, meanwhile, are facing similar challenges. Chairman Jim Matthews says he already knows of some departments, including public safety, corrections and the courts, that cannot cut spending. He says others will have to sharpen their pencils and cut by 5, 10 or even 15 percent if they are to avoid raising taxes next year.