Anchorage Daily News

PALMER - The Mat-Su Assembly adopted its 2010 budget last night. The spending plan includes a lower tax rate, although Assembly members cut the Mat-Su School District budget to get there.

The Assembly set the property tax rate at 9.98 mills, or $998 for every $100,000 of borough-assessed property value. Last year the property tax rate was 10.326 mills.

According to the borough, the average Mat-Su home is worth $209,537, so the average tax bill will start at about $2,091.

Residents who live outside the cities of Palmer, Wasilla and Houston will pay slightly more than that for other borough services such as animal control, libraries and the landfill. Most borough residents will also pay separate road and fire service taxes.

The Assembly cut school spending by about $1 million, from the $232.5 million proposed by the borough manager to $231.5 million.

School board president Jim Colver said he's disappointed in the Assembly's decision. The state education department estimated Mat-Su might receive as much as $15 million in federal economic stimulus funding related to education. Assembly members on Wednesday said they hoped the stimulus funding would offset their cut but Colver said the district had crafted its budget request with the stimulus money in mind.

"We had kind of planned around the borough's (manager proposed) number plus the stimulus money as helping us get through and not have to reduce our teaching staff," Colver said.

He wasn't able to say this afternoon if the district would have to make staff cuts. The district had asked for $245 million. Its budget in 2009, after changes, was $219 million.

Assemblyman Pete Houston, who proposed cutting school funding, said he hoped the district would have enough school funding to keep jobs intact and add a few new positions for the new elementary school being built south of Trunk Road. The $1 million cut was based on a figure provided by the school district that would retain existing jobs, he said.

"I asked for no new hires, and that's what these numbers are," Houston said.

His budget cut passed with Assembly members Lynne Woods, Michelle Church Cindy Bettine and Houston in support. Assemblymen Tom Kluberton and Rob Wells opposed it.

Find reporter Rindi White online at adn.com/contact/rwhite.

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