MERCER
Proposed tax hike could range from 2.5 to 4 mills
By Larissa Theodore
Herald Staff Writer
Unless the state comes up with more money by June, taxpayers in Mercer Area School District could be looking at a 2.5-to-4-mill tax increase for 2002-03.
Directors said Monday the district has to make up a shortfall of $190,000 to balance next year's budget.
Tentative budget numbers for next year show a 2-percent increase in spending over this year's budget, which is more than the district's current revenue, said Dr. Hendley Hoge, principal of Mercer High School. The tentative budget for 2002-03 is $11,560,615; projected revenue is $11,369,504.
But, according to Hoge, a tax hike "should be lower" than 4 mills, depending on what the state decides to allocate to the district.
The board is expecting only an additional $40,000 from the state, Superintendent Dr. Lawrence Connelly said.
The millage numbers changed this year because of a property tax-assessment ratio change that county commissioners approved last year.
Commissioners changed the assessment ratio from one-third of a property's 1970 market value to 100 percent. The move essentially slashed all millage to a third of its former level. That means a 4-mill hike under the new assessment was 12 mills under the old one.
A mill is $1 for every $1,000 of a home's assessed value.
Current taxes of 139 mills equal 46.33 mills under the new assessment. State law limits the school board to a 10 percent tax hike in the year following an assessment change.
A 3-mill tax increase to 49.33 mills would cost a taxpayer with a home assessed at $20,000 about $987 or about $60 more a year.
Each new mill will bring the district $77,759.
"We have no plans for huge increases," board President Cedric Butchy said.
More than half of the spending plan, 55 percent, goes toward salaries; 14 percent goes toward benefits; 9 percent for debt services; and 22 percent for all other expenses.
There have also been increases in utilities, health care and insurance costs. The board is looking for a new liability insurance carrier because of rising costs, Connelly said. The teachers contract also expires in June.
The board will meet at 8 p.m. June 24 to act on a budget.
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