Hermitage school directors Monday approved the 2002-03 budget, which will raise property taxes by 3.75 mills.

The preliminary budget of $20,792,770, which was unveiled in May, would have raised taxes by 4 mills. The approved budget totals $20,593,770.

"We did all we could to reduce it (the millage hike), though we couldn't reduce as much as we'd wanted," said board President Duane Piccirilli. "We tried to be very conscious of the taxpayers. Even a little reduction is a lot."

The reduction of the millage amount was mainly due to retirements and some additional state funding, Superintendent Karen Ionta said.

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

Taxes are currently set at 129.75 mills, which translates to 43.25 mills under the new ratio. The additional 3.75 mills would raise the current ratio to about 47 mills, an increase of about 9 percent.

A mill is $1 for every $1,000 of a home's assessed value. The increase would cost a taxpayer with a home valued at $30,000 an additional $110 a year to about $1,400. Under the new ratio, 1 mill brings in about $217,000, said Business Manager Eugene Fornadel.