DATE: Tuesday, April 15, 1997               TAG: 9704150413

SECTION: LOCAL                   PAGE: B5   EDITION: FINAL 

SOURCE: Vanee Vines 

LENGTH: 54 lines

PORTSMOUTH: SCHOOL BUDGET ILLUSTRATION: Graphic

Portsmouth: SCHOOL BUDGET

Background: Many of Portsmouth's veteran teachers and school

administrators have fled the district in recent years, often because

their salaries lagged those in several surrounding districts.

Portsmouth, one of the state's poorest school districts, also has

struggled to pay for maintenance needs. City leaders say the

district's needs must be balanced against City Hall's desire to

upgrade services and improve Portsmouth's financial health.

The budget: The School Board's $96.6 million operating budget for

next year is, in part, based on $3 million extra from the city. But

City Manager Ron Massie, in his proposed budget for the entire city,

initially recommended the district get only $500,000 extra from the

city in 1997-98. An additional $3 million in city funds for schools

would increase the city's share to $27.3 million in 1997-98 - a 12.6

percent increase over this school year's city appropriation.

Developments at Monday's City Council session: Massie told the

council City Hall could offer $560,000 more for schools - on top of

the initial $500,000 he recommended - and that an increase in the

real estate tax rate is likely. Under Massie's latest proposal, the

district would get a total $1.06 million in extra city money next

year - for a total of about $25.3 million from the city. An extra

$1.06 million would represent a 4 percent increase over this school

year's city appropriation.

Massie offered the council two ways to come up with more money

for schools:

A 2 cent increase in the real estate property tax rate, now $1.36

per $100 in assessed value - $1,360 a year for a $100,000 house.

The money from that rate increase - $560,000 - would be earmarked

for schools.

A $500,000 reduction in the 1997-98 amount that was to be set

aside to fix air-quality problems at Churchland High School. Late

last year, an outside consultant said the price tag for that project

would be about $2 million. And as proposed by the consultant, the

Churchland High renovation project is scheduled to be wrapped up in

the 1998-99 year, with payments spread out between now and then.

On Monday, Massie said the city has a lot of ``flexibility'' in

the pacing of that project. But he said he favored the tax-rate

increase option because it would provide a steadier stream of

income.

Next step: The council will further discuss the budget at a 5

p.m. public work session Monday in council chambers downtown. The

council is scheduled to vote on it the following night.

To get involved: Call the City Council offices at 393-8746.

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