If you own property in the Penn Manor School District, your tax bill is not going up.

The Penn Manor School Board on Monday approved unanimously a preliminary 2009-10 budget that raises spending $207,957 from this year to $64,685,934, and calls for no tax increase.

Meanwhile, the Hempfield School Board will vote on a preliminary 2009-10 budget at 7 tonight at the district office, 200 Church St., Landisville.

Hempfield is putting forth a  proposed spending plan of $95.3 million, which is an increase of about 2 percent from this year's budget of $93.5 million, Business Manager Mary Lynne Kniley said.

Kniley said she could not say what  any proposed tax increase might be.

The board will consider its options before approving a preliminary budget with a tax increase, she said.

School Board President John Kleimo did not return a call to his work this morning for comment.

Penn Manor School Board will vote on a final budget on June 8.

Since the board did not raise taxes, the district is covering a projected 2009-10 shortfall of $1.2 million with money from the district's fund balance, which is a savings account of sorts, Penn Manor Business Manager Chris Johnston said.

The district was also able to stave off an increase thanks to lower fuel costs and a reduction in expenses related to health care and debt, he said.

But come June, the final budget will be higher than the preliminary because the district has not added in any of the projected $2 million in federal stimulus dollars the district expects to receive.

That money comes with stipulations, and many school districts are trying to grapple with the guidelines.

This increase in revenue and expenses will not impact taxes, Johnston said.

Penn Manor's millage rate is projected to remain at 15.91 mills. A resident with a home valued at $132,000 will have a property tax bill of $2,100.12.

But state gaming dollars will bring some relief to the 10,709 property owners in Penn Manor who qualified for homestead or farmstead exclusions. Bills for these qualified residents will decrease about $121, according to figures released recently by the state Department of Education.

Whatever tax increase Hempfield levies, bills will decrease by an estimated $129 for the 12,763 residents who qualified for homestead/farmstead relief.

The tax decreases are part of a 2006 tax law known as Act I that seeks to curb school district spending and tax increases.

Under the law, the state assigns school districts annual property-tax limits.

Hempfield cannot pass a property tax increase higher than its tax cap of 4.7 percent.

Superintendent Brenda Becker said the district is working toward the goal of keeping any increase below the 4.7 percent limit.

Becker said "the most challenging areas" of the budget have been expenses related to special education, medical coverage, utility costs and paying debt.

"We have been going line by line through the entire budget and have already made significant cuts...," Becker said in an e-mail.

Hempfield's 2008-09 millage rate is 16.8814 mills. That amounted to a $2,444.43 property tax bill for a home valued at $144,800, which was the average assessment for 2008-09.

Last year, Hempfield School Board raised property taxes by 5.9 percent, and Penn Manor levied a 3.92 percent increase.

Hempfield School Board will have to approve a final budget by its June 9 meeting.


Staff writer Robyn Meadows can be reached at rmeadows@LNPnews.com or 481-6025.