The Centennial school board is now considering a tax hike of 12 percent - between $100 and $200 per home - to make up largely for rising salaries and benefits for staff, plus increases in special education services and prescription drug costs. 

The preliminary budget for 2001-02 contains $2.5 million more in expenses than the previous year, a rise of about 6.1 percent. Seventy-two percent of that rise is mandated salary increases as the district's teaching staff moves up the salary ladder.

The proposed tax increase would take the millage in the district from 224 to 250 mills. A mill represents $1 for every $1,000 at which a home is assessed. For the average assessment of $8,000, taxes would go up $208 this July 1. 

If approved by the board this month, the budget would preserve all staff positions and add some new programs to the district, such as a network of emergency cell phones for crisis management. 

A few new positions included in the original budget suggestions were cut back when the finance committee saw that revenue was going to fall short - positions such as guidance counselor for William Tennent High and technology staffer. 

According to finance committee Chairman Eugene Grossi, the committee was going to try passing a 10-mill tax increase last year but was able to put it off for another year because there was a surplus. 

"What happened last year is that we made more than we had put in the budget," Grossi said. "The level of business activity was above and beyond our expectations ... with the mercantile tax and real estate tax." 

In addition, the school district has benefited economically in the last few years from nearly 100 early retirements. 

The massive retirements reduced salary costs from the highest tiers of the pay system to the lowest. 

Now, as young replacements move up the scale, the salary costs are returning to normal - hence the increase this year, plus a half million dollar increase in the cost of the prescription drug program. 

Grossi, who has fought budget battles on the committee for a number of years, says that over the long term, the district has a good chance of staying in the black. 

"With the Erickson [assisted-living development] and other ratables coming on, the long term looks pretty good," Grossi said of the developments planned for Warminster. "You're going to see bumps like this in every other school district." 

There hasn't been any public response yet to preliminary budget (available at the district office), but the board passed it without much debate last week in a unanimous vote. 

Tuesday will be the public hearing on the preliminary budget. Officially, the board has set May 22 as the day to adopt it, but budget negotiations will probably continue into June, officials said.