HEBRON | The MSD of Boone Township School Board is set to adopt its proposed 2009 budget at its Sept. 9 meeting despite working from a still unsettled 2008 budget.

The board presented a $12 million budget proposal at a public hearing Tuesday. The 2009 plan tags $7.4 million for the general fund, which pays salaries, benefits and other operating costs. It also includes $2.8 million for debt service, $1.1 million for capital project costs and $510,000 for transportation operating costs.

Although the proposed general fund amount has increased about 3.5 percent over the current year's, that figure doesn't mean much, Superintendent George Letz said. School corporations typically advertise new budgets on the high side, knowing the state will make cuts before final certification, he said.

Also, the 3.5 percent is not an increase over the certified 2008 budget, because that still hasn't been received from the state, Letz said.

Further clouding the budget process is the lack of this year's certified assessed valuation figure, a key figure in determining the budget. Again, the corporation has estimated that number and estimated it on the low side so as not to be left in the lurch when the actual figures are plugged in.

Letz said about 76 percent of the current year's budget has already been spent. Because reductions are expected to be made before the state certifies the budget, the district is working toward spending only about 96 percent of its 2008 budget, he said.

"We have to be careful between now and Dec. 31 because we know we could be cut," he said.

With payment dates of tax revenue draws from the county fluid again this year, the district is assessing the need to borrow with tax anticipation warrants in order to maintain cash flow through the end of the year, Letz said.

The need for such borrowing could be eliminated in the new year when the state assumes full responsibility for the school districts' general funds, Letz said. The state generally makes monthly tuition support payments, as opposed to the county's semiannual payments, he said.

"As long as the state has the money to give us," Letz said.