AUBURN – School officials walked out of Monday’s meeting with the City Council unsure of what they could expect.

They knew councilors expected them to keep their budget from going beyond last year’s. But they didn’t know if they could expect level revenues or a level property tax rate. The difference could mean as much as $60,000, they said.

“It’s important because it determines how much we have to cut,” said school Superintendent Barbara Eretzian.

Eretzian said she needs to know exactly how much to cut from her budget by Friday. That’s when she has to tell school employees whether they will have a job in the 2004-05 school year or not.

“Labor rules say we have to let those employees know by Friday,” Eretzian said. “We don’t have any say in it.”

It was the cap to a civil meeting between the two groups, both facing tight budgets and staff layoffs. School officials adopted a budget last month calling for a $1.4 million increase while councilors are facing a $407,000 increase. Combined with decreasing state aid, that would mean $2.32 million in new property taxes and a $1.36 property tax rate increase.

Councilors have vowed to keep the property tax rate level, and that could mean staff layoffs.

City officials are always careful with property taxes, said City Manager Pat Finnigan.

“What’s different this year is that we are facing a serious tax cap at the state level,” Finnigan said. “If you don’t take it seriously, I suggest you talk to your constituents or people on the street.”

Mainers are scheduled to vote on the cap in November. If approved, it would keep property tax rates at $10 per $1,000 of value.

“We would lose 70 percent of property tax revenue,” Finnigan said. “That means the city and the schools.”

School Committee member David Das said he understood the council’s desire to keep property taxes low, but didn’t think the breakdown was fair.

“If the total increase is $1.8 million, I don’t understand why we don’t spread it out evenly,” Das said. “Why don’t we both trim $900,000 from our budgets?”

It’s not a matter of dividing up the mill rate or budget increases, Finnigan said.

“The city has never looked at the tax rate in those terms,” Finnigan said. “We don’t keep score of who gets what, but what it takes to get the job done.”

That led school officials to ask what they would get out of the budget.

Acting Finance Director Laurie Smith said she realized that the schools were expecting about $130,000 less in state aid to education. Increases in city property values should give the schools more property tax revenue, and that should make up the difference. The school budget should stay level with last year, she said.

Councilors are scheduled to continue budget discussions tonight. The workshop is scheduled at 5:30 p.m. Tuesday.

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