FARRELL SCHOOLS Budget may require property tax increase

The average residential taxpayer could see taxes rise by $126 a year.
FARRELL, Pa. -- The school board is reviewing a tentative $11.9 million budget that could require a property tax increase of 7 mills.
Superintendent Richard Rubano said the $11,973,472 spending plan is underfunded by about $350,000 for fiscal year 2003-04, which begins July 1.
That's equal to 7 mills of property taxes, with each mill generating about $51,000 in revenue, he said, predicting that the final budget will have a lesser increase.
One mill costs the average residential taxpayer $18 a year, and a 7-mill increase will boost the annual tax bill by $126.
Costs rise
A $400,000 increase in the cost of employee health benefits and a $150,000 jump in state-mandated contributions to employee retirement funds are two of the major reasons for a projected 7.3 percent increase in spending.
Utility costs for gas and electricity are expected to rise about 15 percent, Rubano added.
He said the district still isn't sure how much money it will get in state subsidies next year, because Gov. Ed Rendell's proposed budget is still tied up in the state Legislature. The final version will affect Farrell's budget, he said. The district gets about $7 million in state funds.
Grant programs
The Farrell Area School board hasn't shown any interest in cutting staff or programs but is more inclined to pass a budget carrying some tax increase with a shift of some teaching costs to grant programs.
Some government grants can pay for teaching specialists such as a reading teacher, and Farrell is looking for ways to shift the salaries of some of its employees, both teachers and instructional aides, into grant programs, Rubano said.
That way, the district would be able to continue its curriculum offerings without any cuts in staff, he said.
The final version of the budget must be passed by June 30.