Portage schools OK budget plan

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May 30, 2009

By KATHY MELLOTT The Tribune-Democrat Sat May 30, 2009, 12:08 AM EDT

PORTAGE — Despite 2009 plans for more than $3 million in improvements to facilities in the Portage Area School District, there will be no increase in their property taxes, superintendent Richard Bernazzoli said.

School taxes last were increased in 2007, when they went up 2 mills.

One area of increase for the 2009-2010 school year will be a 10 cent jump in the cost of breakfast and lunch for students not eligible for the free or reduced lunch program, business manager Mike Kunko said Friday.

The price for a high school breakfast will go to 85 cents per day while lunch will jump to $1.35. If a student ate every breakfast and lunch meal, the hike will total about $35 a year, district officials calculated.

The $12 million general fund budget tentatively approved by the school board reflects more than $500,000 in anticipated federal stimulus money geared to help special needs students and building improvements.

The stimulus money inflates the overall spending plan which without it would reflect an increase of just less than 5 percent more than the $11 million budget approved last year, Kunko said.

“It’s health insurance, it’s up

8 percent and it’s wages just like everyone else,” he said. The increase in health care premiums is the first the district has had in four or five years.

Final adoption of the 2009-2010 budget is expected at the June 10 meeting.

Regarding the stimulus, which can be spent during the next two years, an estimated $167,000 will be spent on renovations and repairs. Earlier this month, the board awarded contracts totaling $175,000 for replacement of high school gymnasium bleachers and auditorium seating.

Still in the works are a number of projects including a fitness center behind the high school and a broadcasting box and other improvements at the athletic stadium.

The new budget provides for a $525,000 contribution to the capital reserve fund, up from the $425,000 added during the current year.

A part of the fund will be used to help pay for the improvements, but Kunko said it will not be drained.

“We won’t spend it all, we’ll save enough so we have a good fund balance,” he said.

Plans are in the works to float a bond issue next year to pay for

$4 million in renovations planned for the 1970s elementary school.

Repayment on the debt will not begin until 2012 or 2013 and the hope is the annual service costs can be covered without a tax hike, officials said.

Following state guidelines, the bulk of the one-time stimulus money will be spent on remedial math and reading and special education. Just more than $6,000 of the total can be spent on technology, Kunko said.

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