Ken Gentile, the Monroe County School District chief of staff, on Monday gave a 2012-13 budget year preview that includes decreased expenditures and a 5.5 percent tax increase.</p><p>Although the budget won't be adopted until Sept. 4, the district's fiscal year, unlike other governmental agencies, started on July 1 in advance of the school year start in August.</p><p>Gentile said expenditures are projected at $79.5 million, with revenues coming in at $80,086,600. For the last fiscal year, the corresponding values were $81 million and $78.5 million, which resulted in deficit spending.</p><p>Over the last two budget years, the school system has reduced expenditures by more than $13 million.</p><p>Gentile, alluding to past budget amendments that resulted in spending down the fund balance, said the proposed budget is "fully loaded. What has surprised us in the past and pushed us up in our budget amendments, is built into our budget." </p><p>The $79.5 million in projected spending is supported by a tax rate of $3.66 per $1,000 of assessed home value, up 5.5 percent from last year's tax rate of $3.565 per $1,000 of assessed home value.</p><p>The proposed tax rate, for the owner of a $300,000 home, results in a $1,098 tax bill; compare that to the last budget cycle in which the same homeowner paid $1,069. Both assume no homestead exemption in the calculation. With homestead, the owner would pay $915 instead of $891.25.</p><p>Gentile projects an ending fund balance in June 2013 of 5.6 percent, or $4,128,683.</p><p>Reductions considered in the proposed budget include: savings of $1.3 million based on changes to employee health benefits; $1.9 million via reducing around 40 teacher positions; $400,000 cut from teacher supplements for extra duty; and $300,000 in cuts at the administrative level.</p><p>The budget also includes a total of seven furlough days, which yield a savings of between $225,000 and $250,000 per day.</p><p>Based on the healthy fund balance projection, board Chairman John Dick says some furlough days could be taken back if the financial picture stayed positive.</p><p>"What we could do is back off some of that," he said.</p><p>The board will hold three public budget hearings, all beginning at 6 p.m., on July 31 at the administrative offices in Key West; Aug. 21 at Marathon High School; and Sept. 4 at Coral Shores High School.