ORWIGSBURG - The Blue Mountain school board approved a preliminary budget with the maximum tax increase for the district.
With a 5-3 vote, members voted for the 2012-13 budget that proposes to increase millage from 34.90 to 36.8178.
Estimated revenues are $36,783,180 and expenses are $38,010,184.
Voting against the budget were board members Marci Cryts-Kramer, Thomas Wehr and Heather Gosch. All other members except Edward Guistwite, who was absent, voted for it. A final budget must be approved by June 30.
Along with the vote, the district decided to apply for exceptions for retirement contributions and special education expenditures.
Cryts-Kramer said that "by not being privy to important conversations that occurred in preparation of this budget, I could not in my heart vote 'yes' because I didn't know what went on in those meetings." She said committee meetings were held without prior notice to the entire school board.
Gosch said she voted "no" because she also was unaware of meetings and thought the board could have done a better job reducing the proposed tax hike.
Wehr was not present at the meeting but participated by phone.
As it now stands, the district could increase taxes 2.2 percent, which would amount to $34 more for the average home assessed at $45,000. That would generate $375,000 for the district. If the district is granted the exceptions by the state and uses them that would amount to an extra $51 for the average assessed house, business manager Patricia Denicola said and would net the district about $532,000. By the February, the district will know if those exceptions have been granted, she said at a meeting earlier in the day. Expenses are increasing Superintendent Robert Urzillo and Denicola said.
If needed, the district could also use $1 million of its unassigned fund balance, leaving under $1.5 million left. At a Jan. 19 meeting, Moss and Urzillo said the budget was just in it's initial stages. Vice president David Lafko said at that meeting the finance committee and most likely the board would not like to impose an additional tax burden on the residents.
Even using all of the above means, the district still faces over a $1 million shortfall; however, that does not account for some federal and state funding that is unknown at this time.