Sharon City School District is facing a $458,450 deficit in the 2002-03 budget.

Business Manager James Wolf presented school directors Wednesday with a tentative budget that includes $21,341,850 in spending and only $20,883,400 in revenue.

Now it's up to the directors to decide how to make up the difference.

The budget calls for $4,078,000 in property tax revenue -- about the same as the current budget -- but there was no millage set in the tentative plan. "We haven't talked about taxes," Wolf said.

Taxes are currently set at 123 mills, which equates to 41 mills under the county's new system, Wolf said.

Last year, county commissioners changed the property tax assessment ratio from 33.3 percent of a property's 1970 market value to 100 percent. The move essentially slashed all millage to a third of its former level.

One mill of taxes generated about $32,000 for the district under the old formula. Under the new one, each mill generates $96,000, Wolf said.

"You're (the taxpayer) still paying the same amount of money," Wolf said. He added that because of the change the district cannot legally raise taxes more than 10 percent.

Director Dominick Russo said if the board decides to raise taxes the 4.81 mills the district needs, it's like raising taxes 14.33 mills under the old assessment.

A mill is $1 for every $1,000 of a home's assessed value. A 4.81 mill tax increase would cost a taxpayer with a home valued at $15,000 about $72 more a year.

"I think we need to sharpen our pencils and make some real tough cuts here," Russo said. "I never lose sight of the fact that we're here to be responsible. Sometimes responsibility comes with a price tag."

Wolf said at the beginning of budget talks two months ago the projected deficit was $1.5 million.

Wolf said there are "still a number of factors" such as money from the state, retirements and money carried over from previous years that could help balance the budget.

There should be about $700,000 left in the district's coffers at the end of this year, Wolf said. The proposed budget calls for spending $241,100 of that reserve, known as the fund balance.

Russo also asked how on-going teacher contract negotiations are going to affect the budget. The contract expires June 30. Wolf said he was not at liberty to discuss the negotiations or their effect on the budget.

The board is expected to vote on the tentative budget Monday. A final budget must be passed by June 30.

Spending:
• Instruction -- $12,913,860 ($12,523,090)

  • Salaries, including administration -- $12,165,000 ($11,837,600)

  • Benefits, including administration -- $3,443,500 ($3,205,000)

• Support Services -- $5,550,130 ($5,234,250)

• Noninstructional -- $947,260 ($891,500)

• Debt and reserve -- $1,930,600 ($1,870,000)

  Funding:

• Local taxes, including a real estate tax levy of at least 41 mills $6,103,400 ($5,905,000)

• State funds -- $12,651,300 ($12,586,840)

• Federal funds -- $1,887,600 ($1,660,900)

• Fund balance -- $241,100 ($241,100)