LYNN – With over 150 jobs and two schools set to disappear because of a tough economy and tight budget, Superintendent Nicholas Kostan says he is focused on maintaining the success of the Lynn Public School Department despite this adversity.Speaking in front of the Lynn Rotary Club at the Porthole Pub Thursday afternoon, Kostan reiterated that rising energy and health insurance costs, combined with a struggling economy has left the city and School Department struggling to stay above water in fiscal year 2009.Despite proposing the closure of two elementary schools and cutbacks in several other programs, Kostan remains optimistic that the economy will eventually turn around, and hopes that the district can continue to succeed as it has in recent years.”As an urban district we have really been able to see the light at the end of the tunnel as far as student achievement is concerned,” he said. “But I can’t remember the last time an elementary school had to close, and I can’t remember the last time our financial situation has been this bad.”While the School Committee is still reviewing the budget and searching for ways to save the Fallon and Washington Elementary Schools, the likelihood of those two schools remaining open is very slim considering the $6.5 million deficit facing the department.Kostan again painted a bleak picture for 2009 at the Rotary lunch, but was quick to point out that not all of the news is bad these days.Over the past several years the department has improved in its test scores and accountability, resulting in its removal from the Office of Education and Quality Assurance’s watch status, and an upgrade to a priority two district at the Department of Education, the only urban district in the state to improve enough to be removed from the Commissioner’s watch status.Several schools in the district have been recognized for academic excellence over the last two years as well, including Classical and English High Schools, which were two of only three high schools in the county to be recognized by the U.S. World and News Report, and the Sewell-Anderson Elementary School which was the only Massachusetts school represented at the Title 1 Excellence Awards earlier this year in Nashville.The National Association of Musical Merchandisers recently recognized the district’s Fine Arts Department as one of the top 100 music programs in the country, and the Lynn English ROTC program has become nationally recognized.Despite the budget numbers, Kostan is confident that the district can continue to improve academically over the next several years if the School Committee and finance team can keep the infrastructure in tact in 2009.”Unfortunately we have come to this point with the budget, but we have to try and look at what opportunities are there in bad times to try and salvage the infrastructure,” he said. “The thing I worry about is that we have had excellent class sizes and excellent training for our classroom teachers that has really moved us forward as a district, and I hope that these financial problems do not set us back.”Kostan praised the Classical Freshman Academy for their achievements that have created a positive situation and a successful program out of the Classical construction mess that has displaced freshman students. He also highlighted the efforts of General Electric and the Lynn Police that have created a safer, rejuvenated environment at the Marshall Middle School through security and landscape upgrades.Finally, Kostan made it a point to praise the students of Lynn Public Schools, who in recent years have attended Ivy League colleges such as Harvard.”Our kids are making it, they have the opportunity to make it and our kids are getting out there and doing well,” he said. “We have four wonderful high schools, three public and one private, in Lynn and our kids have proven that they are as prepared as anyone to attend good colleges. I can’t say enough for the classroom teachers in the School Department that are