The Levittown Board of Education on April 15 unanimously proposed a $127.9 million expenditure budget for the 2002-03 fiscal year, representing a 7 percent increase compared to last year's budget. If approved, the average homeowner would spend $399 more in annual taxes than in the prior year.

A public hearing is set to take place May 14 at 8 p.m. The budget vote is on May 21.

Even if the budget - which would go into effect July 1 - were voted down, homeowners would still see about a $379 average tax rise, or a 6.7 percent expenditure increase. A 6.7 percent increase is a figure allowed by state standards.

The proposed budget would assure that no major programs would be cut and staff would be maintained. The budget hike would also cover a cost-of-living increase and would help to maintain low class sizes. Included in the budget would be capital improvement projects that allow for roof and ceiling replacements at Abbey Lane School and science laboratory refurbishing at Division Avenue HighSchool. Some cuts could occur in money earmarked for athletic busing and field trips. Overall however, Assistant Superintendent for Business and Finance Dr. Alan Groveman said many weeks of preparation paid off tremendously as compared to other area towns.

"The average taxpayer paid $4,269 in Levittown last year," he said. "It was more than $4,800 annually in Nassau County. And while our taxpayers pay less, our students' achievements have risen considerably in the past 10 years."

Civic group representatives in attendance applauded the proposed budget. They only asked that all major programs be maintained, a promise the board kept. Board of education members had little deliberation before proposing the budget, a result of long and hard work, said Gina Interdonato, board member.

"It is a fair budget," she said. "We wanted to maintain programs while easing the burden of the taxpayers."

"The board set out to have a budget as low as possible," said Superintendent Dr. Herman A. Sirois. "It's less than .05 percent above what the state would allow. I would like to congratulate the board for a full year of planning."

Although administrators and board members were pleased with the proposal, the budget does call for $2.1 million to be spent from the fund balance. The fund balance is a surplus fund the board maintains in case of unexpected emergencies, or if revenues dip below targets. The fund balance expense would leave about 1.3 percent of the total budget remaining in the account, according to Dr. Groveman. Moody's, a financial institution that performs bond ratings, recommends that at least 2 percent of a total budget remain in a fund balance. And maintaining a 5 percent fund balance is optimal for the highest bond rating, which is important because it helps determine what interest rate a school district pays when it borrows money. Levittown has an A- rating, which is one the highest grades behind AAA, AA and A. Dr. Sirois said he was not concerned the bond rating would be lowered.

"There is some risk when the fund balance is below 2 percent," he said. "But it's not low enough to change our bond rating."

"We have reason to believe our bond rating is strong," added Board President Ronald Kinberg.

Dr. Sirois also said the board decided to remove a considerable amount from the fund balance in order to reduce the tax increase for residents.

"It's a delicate balance," he said. "It certainly was a difficult decision to make, but we wanted to provide a tax break for homeowners."