The Salt Lake School District wants a hefty hike in its 1990-91 budget, raising it by 9 percent to $98.9 million. But the biggest budget increase in years won't require property taxpayers to open their pockets any wider.

The district's tentative budget would shift the $4 million now going to debt payments to other needs, mainly teachers' salaries.The school district will be debt-free for the first time in more than a decade come June 30. By then it makes the final payment on approximately $30 million in bonds. The district bonded to replace or remodel the district's older elementary schools and expand its school libraries.

Because the budget requires a shift in funds, not a tax increase, Salt Lake property taxpayers will have the same tax rate for the schools - .007961 or 39.80 mills in the 1990-91 budget - as they did for the 1989-90 budget.

But because the proposal calls for the Salt Lake Board of Education to shift monies, rather than reduce taxes when the debt is retired, the board must notify taxpayers about its plan and hold a truth-in-taxation hearing. The board will set the tentative budget June 19 and hold the public hearing Aug. 7. It must adopt its final budget before Aug. 9.

"The budget is not without problems, but everything considered, it is a good budget. It is still not living up to the needs and expectations of a lot of people," said district business administrator W. Gary Harmer.

Approximately half of the $4 million from debt payments will go to teacher salaries. That, coupled with $1 million raised by increasing the voted-leeway levy by one mill, as allowed by the 1990 Utah Legislature, will pay for teacher pay raises, the business manager said.

Two months ago, Harmer reported that the district was short $3 million on the anticipated teacher pay raises. The trouble stemmed from how the Utah Legislature appropriated the money for the legislative-mandated pay raise of $1,000 per teacher. It was compounded by other changes in payment of social security and retirement benefits.

Teacher representatives and district officials are currently negotiating the teacher pay-and-benefits package. They've had only one meeting to date.

The tentative budget, Harmer said, suggests the average teacher pay raise be set at $1,000, or about 4 percent, with newer teachers receiving a greater percentage and veteran teachers receiving less. The proposed budget also calls for funding the step and lane changes (2 percent), increased insurance costs (2.37 percent) and retirement (.54 percent).

There may be additions to this proposed teacher pay-benefits package, but Harmer said he wouldn't speculate on any changes.

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The other $2 million shifted out of debt service will go to construction and technological needs, Harmer said.

The board has talked about bonding for the seismic retrofitting. Harmer told the school board earlier this week that it would be difficult to sell taxpayers on bonding until after the Legislature decides whether it will change the funding structure for school capital outlay and debt service accounts.

Harmer said the proposal, which is an attempt to equalize tax monies between school districts, could increase Salt Lake City property taxes for schools by 18.24 percent and cost the school district $40 million over the next 10 years.

On 1990-91 program improvements, the budget allocates $500,000. Among them are expansion of the English as a Second Language program and a new program to teach reading to at-risk students.

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