The board was presented with a $37,282,834 budget, which had been on display for public inspection the last 30 days and did not include a tax increase for the 2008-09 school year budget.

When the first vote was taken it ended in a 4-4 tie with board President Kirby Starr and board member Ron Voris, Penny Pifer and Jeff Martz voting yes. 

Francis Molinaro, Robert Pascuzzo, Jack White and Gary Conrad voted no. 

Penny Pierce was absent from the meeting.

After some discussion later in the meeting, the board passed with budget 6-2, with Conrad and White sticking to their no votes.

Superintendent Dr. J. Thomas Frantz said the board would have to come up with a budget because it has to be passed by June 30 according to state law.

"In all the budgets we've had over the years, I've never spent the whole thing," Frantz said. "I don't understand how anyone can vote against a budget that contains no tax increase."

Frantz said the budget only increased $1.5 million, which is 4.2 percent from this past year.

"Give me a percentage that you want cut, and Susan (Robertson, business administrator)and I will work to come up with budget cuts by Monday," Frantz said.

Some board members said they just didn't recently object to the budget, but had opposed it all along.

Pascuzzo suggested the board table the vote until later in the meeting and continue with its agenda.

After the rest of the agenda had been dealt with, the board took a short break and then went into an executive session for discussion of personnel matters.

Pascuzzo said after the board returned from the session that this was not the right time or place to bring objections to the budget.

"I think the board as a whole needs to get a little closer together and work through some of these issues," Pascuzzo said. "Every time it seems like when we are in a position to consolidate some positions, we hire replacements. If the budget continues to increase $2 million per year over the next 15 years, we'll be close to a$70 million budget. I don't know how a little town like Punxsutawney can afford those kinds of increases."

On the second vote of the night, the budget passed, with Pascuzzo and Molinaro changing their votes to yes.

The district taxes were then set, with the per capita school laws tax at $5; per capita Act 511 tax is $5; earned income tax Act 511 is one percent; occupational assessment tax Act 511 is 600 mills; and the real estate transfer tax Act 511 is one percent.

The real estate tax levy for the 2008-09 school year will be levied at 26.029 mills for Jefferson County and 80.906 mills for Indiana County.

The board also approved the authorization for the Homestead/Farmstead exclusion real estate tax assessment reduction for the 2008-09 school year begining July 1 equal to $8,544 in Jefferson County and $2,748 in Indiana County.

Starr said to be eligible for the exclusion, residents have to apply prior to March 1 every year.