In a split decision, Sharpsville school directors Monday adopted a $10,950,900 tentative budget for 2002-03 that carries a 3-mill -- or 5.66 percent -- tax hike.

But finance committee Chairman Robert Timmerman wants to examine whether the board can use more of its savings, rather than add taxes, to balance the budget.

If the tentative plan does not change, real estate taxes will be 56 mills under the new assessment ratio of 100 percent of a property's 1970 market value. A mill is $1 for every $1,000 of assessed value.

Last year, county commissioners changed the ratio from one-third of a property's 1970 market value to 100 percent. Under the old ratio, the levy would be 168 mills, up 9 mills. The ratio change does not affect the dollar amount, and state law limits school boards to a 10-percent tax hike in the year following an assessment change.

A mill costs taxpayers about $21 in Clark, $18 in South Pymatuning Township and $15 in Sharpsville.

At 56 mills, a property assessed at $20,000 will carry a tax bill of $1,120. Three of the new mills will bring the district about $180,000.

The board's projected fund balance for the beginning of the fiscal year is $850,000; for the end of next year, about $600,000. Timmerman said the $180,000 could come out of the fund balance, leaving about $420,000 in savings.

If the 3-mill tax hike takes effect, Timmerman said, the $180,000 would be added to the fund balance.

"I personally feel comfortable with $10,950,900," Timmerman said. "What we as a board will have to do is barter between are we going to use the fund balance or are we going to raise taxes?"

Timmerman pointed out that in the past the board has budgeted money that it hasn't spent.

Even though Timmerman said he was not for the tax hike, he voted in favor of the tentative budget, along with board President Terry Karsonovich, Vice President David DeForest and directors Susan Pokorney, Charles Rice, Joyce Grandy and Kimberly Barringer.

Directors Donna Murray and Chris Ruffo opposed it.

"Passing a tentative budget with a 3-mill increase makes me very uncomfortable," Mrs. Murray said. She said although the finance committee has made cuts, more could be made.

"We've cut to the bone. It's lean and mean," she said. "But we cannot afford to continue the avenue we have been pursuing. We have to be responsible. That's what we were elected to do ... I cannot possibly vote for a budget with a 3-mill increase."

The board has raised taxes a total of 6 of the new mills -- 18 of the old mills -- over three years to cover the elementary building project.

The budget reflects a $123,000 -- or 1.1 percent -- decrease in spending from this year, said Business Manager Jaime Roberts. About $700,000 was cut from the first draft, but no jobs were eliminated.

"It's a real plus we've been able to cut this much without hurting anyone," said Karsonovich.

The board is expected to approve a final budget at 7 p.m. June 19.

You can e-mail Herald Staff Writer Erin Remai at:

eremai@sharon-herald.com.