Some personnel needs and textbooks top the requests for new budget expenditures for the Bismarck School District next school year.

The school board started with the premise of a 3.5 percent maximum increase on new expenditures, not including construction, when it considered the projected 2008-09 budget Wednesday night at the Hughes Education Center.

This increase was tied to a performance pay clause in Superintendent Paul Johnson's contract. He needed to submit a budget by May 1 that showed no more than a 3.5 percent increase in budget enhancement.

The projected budget gave $800,000 for new expenditures, and based on estimated tax collections and valuation increases, district finance director Ed Gerhardt estimated expenses could still increase $2.2 million while maintaining a 10 percent ending balance for the year.

This extra money can vary according to how much the board wants to reduce the mill levy, how much of the general fund will be dedicated to building projects and how much will be spent to pay the remainder of the Simle Middle School remodeling project.

The board discussed its options at the special meeting Wednesday. First, it considered upcoming building projects and possible funding scenarios. Then it considered possible mill levy reductions.

Once the Simle remodeling project is done, the district plans to move forward on the career and technical center building, which will be built at Bismarck State College. It also plans to go forward with a new elementary school. The career and technical center is estimated between $10 and $12 million and the elementary school, for planning purposes, is estimated at the same cost.

The district could pay for the buildings with the undedicated funds from the building fund and the 15 mills set aside in the general fund for building projects. The problem is timing. Starting both projects at the same time causes the district to be short about $5.8 million the following school year, in 2009-10.

One option is to borrow from the school construction loan fund, which the district could do, if it qualifies as an equity school district. This gives it a better loan rate and it can borrow $7.5 million compared to $2.5 million, Gerhardt said.

Another option is to increase the set aside in the general fund from 15 mills to 20 mills, which would generate about $1 million more.

The board will make decisions on the budget at later meetings. At its next meeting, it will consider the new personnel requests included in the budget enhancements.

More than half of the $800,000 was allocated to pay for secondary and elementary school teachers.

"We felt staffing needed to be a priority," Johnson said.

Some of the positions would be filled by giving teachers contracts to teach during prep times. Other positions would require the district to hire someone, although one person could be used by more than one school.

The assistant principals are a temporary fix for Murphy and Northridge elementary schools. The schools will have more than 700 students next year with the addition of all-day kindergarten and growing enrollment. Until the district builds a new school, the district would like to provide assistance to the principal by hiring assistant principals for both locations.

"Up to 500 students is doable," Johnson said. "After that, you need someone else. You don't blink an eye at having an assistant principal in the middle schools."

Board member Dan Kuntz was critical of the assistant principal request because he said he was concerned that once hired, the position would not be eliminated and could lead to other elementary schools requesting similar positions.

The board will decide on a mill levy reduction at a later date. Initial thoughts from the board members is that it will be between a five and eight mill reduction. The district mill levy for 2007-08 is 229.42 mills.

(Reach reporter Sara Kincaid at 250-8251 or sara.kincaid@bismarcktribune.com.)