It's a combination of the good and the bad in the Murray School District's proposed 1991-92 budget. And in the end, they pretty much cancel each other out.

Social Security and retirement funding will take a $135,000 hit because of state rules on voter-approved leeway taxes.Tax rates will drop - that sounds good - but assessed valuations will go up, which means homeowners will be writing bigger property tax checks.

Some instruction programs look like they will cost less next year. But that's only because a new line item - a non-instruction-related $228,000 fund - has been created.

Confusing? Yes, says district budget chief Richard Clark. But the upshot, he said, is all the additions and subtractions basically cancel each other out. When the bookkeeping dust settles, the Murray District will more than likely have enough money in its 1991-92 budget to keep its election promises and still fund an overall 2.8 percent budget increase.

Clark unveiled the district's proposed 1991-92 budget last week. The final hearing on the $22.2 million financial plan will be held June 12 at 7:30 p.m.

The proposed budget shows that a 2-mill leeway tax approved by district voters last November will yield enough money to reduce class sizes and hire new counselors - benefits the district board promised to voters if the tax increase passed.

There is a downside, however. The state of Utah pays less to districts receiving revenues from a voted leeway, and the reductions will be felt in the district's Social Security and retirement accounts.

Clark estimates a net loss of $135,000 to those accounts. That money will have to be made up out of the leeway revenues, earmarked for hiring new counselors and teachers.

But higher assessed valuations will yield more leeway money than anticipated last November.

Assessed valuations are expected to increase 16.61 percent in the Murray District as a result of the AMAX decision, which is intended to even out property tax disparities.

The state reduced the mandatory basic school levy by 1.9 mills to compensate for the higher assessed valuations that followed the AMAX decision, and that reduction will be offset upward in the Murray District by the 2-mill leeway tax increase.

In short, the property tax rate will drop - from a rate of .008025 to .008012 - but more money will come in.

Other apparent good news is a drop in capital spending. But that will last only a couple of years while the district spends money left over from previous years' budget allocations, Clark said.