Conneaut School directors reviewed a proposed budget at their work session on May 5, that showed several changes from the one reviewed back in February, but with little change in that real estate taxes are proposed to increase by 1.97 mills, the limit allowed under State Act 1.

The school district’s tentative budget will be adopted at the board meeting to be held Wednesday, with a final budget to be approved in June after 30 days of advertising.

There are no new teaching positions in the budget and it is possible the teaching staff could be reduced by two, if kindergarten projections hold true based on current sign ups.

Should there be an increase in elementary student numbers, then it is possible staff would have to be added come fall, but again that depends on numbers when students return to school in late August.

The school directors did not increase taxes in this year’s budget that began last July 1, noting the poor economic conditions but most likely cannot do that again as raising costs put a strain on the budget while uncertainty about state funding remains.

The budget that begins July 1 shows an increase of a little over $1.6 million over the current budget with three categories showing the major increases.

The single largest increase is $739,142, the portion that cover benefits. Health insurance is projected to increase some $237,060, even though the district is in a group with several other school districts in efforts to control rising premiums. School employees do pay toward the costs.

There will be an increase in retirement, that showing an increase of $495,018, from $675,283 this year to $1,170,301 next year.

That is driven by a pending crisis in retirement funds across the state, which has not been addressed at the state level even though some projections have shown there is a problem out there especially in light of the state passing improved retirement benefits for legislators and others back some years ago when Tom Ridge was governor.

Another huge increase in expenses is the cost for students in the district opting to attend charter/cyber schools, that showing a $500,350 increase. That is 30% of the increase overall while the benefit increase of $739,142 is 45% of the increase

The wage increase is pegged at $368,524, a 2.6% increase over this year’s figures, but is 22% of the overall increase.

Thus the three items just noted make up 97% of the overall increase in the budget being proposed.

State support is being estimated at level funding, the same figures used in the 2005-06 school year as the state cut basic education funds at the state level when they did their budget last year; Increases in that fund then were filled by using federal stimulus funds. That is seen as happening again this upcoming year.

The school district’s fund balance is seen as decreasing some $353,518 in this year’s budget, a figure that had been projected to be $2,446,319.

Still the decrease in fund balance amounts to 1.47 mills of real estate taxes, which would have been covered had school taxes been increased the allowable 2.7 mills last year.

The preliminary budget for the year starting July 1, projects a decrease in fund balance of $3,388,814, a whopping 13.94 mills of tax. Hopefully careful spending during the year and any increases received from the state will help cut that proposed figure.

Overall the budget continues to tighten and continued poor support from the state, a poor economy, and other factors in upcoming years could cause looks at cutting programs among other possibilities.

The 1.97 mills increase being proposed would cost the average taxpayer with average assessment a little over $50.

The new tax rate would be 50.05, up from 48>08.

Even should the tax rate be increased, it is estimated that local taxes will actually drop, from the 2009-10 estimate of $14,496,777 to $14,631,844.

Once the tentative budget is approved, school directors and administration will continue to refine the proposal until a final one is adopted in June which is required by law to be no later than June 30.