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Bangor Area trying to shrink likely tax hike - If business manager can get levy increase below 4.6%, budget would not require voter approval

The Bangor Area School District plans to increase property taxes, according to its budget for the 2007-2008 school year.

As it stands now, the $42.9 million budget shows the district raising its millage rate by 5.75 percent, from 43.5 mills to 46 mills. However, business manager Steve Winecek told school directors Monday night that he wants to shrink that to a 4.6 percent increase, which would put the tax rate at 45.5 mills. At that rate, the owner of a property with an assessed value of $50,000 would pay a $2,275 tax bill.

The district is spending $659,000 more this year for salaries and wages, benefits and insurance costs. In addition, it's getting less revenue than anticipated from the real estate transfer tax. Winecek said he expected $625,000, but the budget shows the district taking in $200,000 less than that.

School districts are reviewing their budgets months earlier than usual this year, because of a provision in the state's Act 1. It requires that school boards ask their voters to approve budgets when tax increases are higher than a state mandated index. In Bangor's case, that threshold is 4.6 percent. In order to get down to that number, Bangor must cut $300,000 in spending from the budget.

The board is scheduled to adopt a preliminary budget at 7:30 p.m. Monday at the district offices. At the same meeting, school directors will also decide between two possible ballot questions for this year's primary, one that would ask voters to raise the earned income tax, and another that would replace part of the earned income tax with a personal income tax.

There is revenue in the budget for which the district has no concrete numbers.

"We have no clue what we're going to get from the state," or from the federal government, Winecek said. He has budgeted a 2 percent increase in state funding.

"That's pretty conservative," said School Director Kevin Pruett.

"I hope so," Winecek responded. Last year, the state increased its contribution by 7 percent; this year, the district hopes to get at least an extra 3 percent.