Sharon school directors will have to cut programs, reduce staff and raise taxes to balance the books for the next school year.

"There are no winners in this budget," said board President Melvin Bandzak.

The school board discussed a tentative budget at its work session Wednesday.

If taxes, staff and programs were to remain at the current level, the school would face an $830,000 shortfall.

To make ends meet, Bandzak said, "programs will be cut, staff will be cut, and taxes will increase. ... There's no way around it."

Under the proposed $22.9 million budget, taxes will increase by almost 20 percent. The school board is eyeing an 8.5-mill tax increase, which would bring the total property tax levy to 52.5 mills.

The 8.5-mill increase means the average taxpayer in Sharon would pay a total school tax of $787.50, up from $660 this year. According to district figures, the average home in Sharon is valued at $15,000 for tax purposes.

A mill of taxes generates $96,000 for the district.

According to state law, schools must have budgets passed by June 30. A final budget must be available for public viewing for 20 days before final passage.

The district's 2003-04 budget shows an almost 6.5 percent spending increase over this year's, Bandzak said. Those increases, he said, came mostly in the areas of health care costs, tuition payments to charter schools, a mandated increase in payments to the state retirement system, and increases in utilities and other insurance.

"I feel it needs more work," said school Director Richard Mancino. "It is very much a tentative budget."

Superintendent Dr. Donna M. DeBonis said since the budget is still tentative, she could not say if support staff or teachers could be laid off, but said "every attempt is being made to reduce through attrition."

The No. 1 budgetary hurdle, Bandzak said, was an additional payment that had to be made to the Western Pennsylvania Healthcare Consortium, a health care insurance risk pool that includes 12 school districts. Sharon, along with other districts in the consortium, had to pay additional, unexpected money into the fund this year to cover several high claims.

Sharon's total bill to the consortium is an extra $660,000. The school district was given permission by Mercer County Common Pleas Court to borrow $750,000 to cover what they already know is owed, and some extra in case future bills arrive.

The district took out the loan over a period of five years.

Taxes are currently set at 44 mills. A mill is $1 for every $1,000 of a property's 1970 market value. Last year, the school board raised taxes by 3 mills.

Sharon City School District's budget at a glance

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