As they begin crafting the district's 2003-04 budget, West Middlesex Area School directors face a nearly $1 million shortfall, more than half of that administrative salaries and health-care costs.

School directors met Monday to look at the district's financial position. "We need to get a good, solid picture of where we're at," Director Warden Burger said.

School officials need $935,500 to balance the anticipated $11,513,862 budget. That shortfall is equivalent to 15 mills of taxes, according to district figures.

Administrative salaries will see one of the largest increases, at least $162,000.

Board President Thomas Hubert said as he understands the increase is more than that. He said auditors from Black, Bashor and Porsch, Sharon, thought the increase in administrative salaries would be closer to $272,000.

When Hubert asked about the increase, he was told it is a personnel matter. The board went into a closed-door meeting, presumably to discuss that line item, among others.

Neither Superintendent Al Jones nor Business Manager Margaret Burgoon would comment on the increase.

Mrs. Burgoon said she can't comment because the increase deals with personnel and contract issues. She deferred questions to Jones, who said they "don't know how many administrators the district will have next year, who is going to be where and the board members have made no decisions."

The district also expects to see a 28 percent increase, or $334,000, in health-care costs.

West Middlesex is part of the Western Pennsylvania Schools Health Care Consortium. The consortium pays health-care benefits for member schools' employees. The consortium is facing serious financial difficulties and member districts must make up a $4 million deficit.

Directors in West Middlesex voted to pay the current bill of $247,000 from district savings.

Jones said he is looking at other health-care providers so that directors have options. He said no one knows the future of the consortium and school officials should be prepared for anything.

Mrs. Burgoon suggested directors start setting aside money in case of another bad year.

The district's contribution to the state for retirees also will increase $145,300 for next year.

The retirements of 11 employees at the end of the school year will put a strain on that budget, increasing pension costs by $30,000, Mrs. Burgoon said. Jones said two or three employees retired unexpectedly.

Mrs. Burgoon said that money can be made up from other areas of the budget that may have money left at the end of the year.

A mill of taxes costs the average taxpayer $18, according to district figures. A 15-mill tax increase would cost $270.

Jones said this is the beginning of the budget process and there are still areas where cuts can be made. Plus, certain revenue sources, such as the state subsidy, aren't set yet, he said.

School budgets must be approved by June 30.