Revised budget narrows revenue-spending gap

The district is still looking at a 3-mill property tax increase.
SHARON, Pa.-- The Sharon City School District has narrowed the gap slightly between proposed spending and anticipated revenues in its tentative 2002-03 budget.
The board introduced a $21,341,850 pending plan last month that showed a $460,000 revenue shortfall, the equivalent of 4.81 mills of property taxes.
That's 4.81 mills of "new" taxes. Mercer County changed its property tax assessment ratio from 33.3 percent to 100 percent of assessed value this year, tripling the value of a mill.
In Sharon, the new mill costs the average residential taxpayer $15 a year.
District Business Manager James Wolf told the school board Monday that there have been some cuts in proposed spending and some changes in revenue amounts that have altered the tentative budget.
Four retirements will reduce salary costs by $45,400, while utility costs and other items are also lower than original estimates.
The net result is the new budget total of $21,235,080, or $106,770 lower than the tentative budget.
Revenues
On the revenue side, some federal grants will boost revenues by $48,300 to a total of $20,931,700.
Wolf said the size of the shortfall is now just over $303,000.
There is a chance the state will increase its subsidy allocation to Sharon by $100,000 and the district can take an additional $59,000 from its fund balance (savings account).
Sharon will still need a 1.16 millage increase in the property tax, about $110,000, to further close the gap and should be able to balance the budget by eliminating some optional teacher work days at a savings of $37,870, Wolf said.
The district is also looking at an additional 1.84-mill property tax increase to help cover debt service, which means the new budget will have a total property tax increase of 3 mills under the plan outlined by Wolf.
That's the equivalent of 9 mills under last year's property tax assessment or about $45 per year for the average residential taxpayer.
Final budget passage is expected June 17.