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Spending would go up by 5 percent and taxes would increase by nearly 8 percent under a $34.7 million budget proposal outlined Monday for the Iroquois School Board by Superintendent Neill Rochelle.

The district learned last week that it would receive an increase of $459,916 in state aid, but Rochelle still proposed a series of cuts:

Transportation $31,000 plus $68,635 in savings by eliminating the 5 p.m. late bus.

Buildings and grounds $55,00,0 mostly in overtime and supplies.

Athletics, $16,762 in supplies and uniform replacement, and the elimination of the tennis and cross country intermurals.

Another $10,903 would be cut in general operating expenses and $64,150 from the Board of Cooperative Education Services.

In March, Rochelle said the district's costs for retirement funds would be up $275,401 over the current year and health costs would increase $411,000, while the district's fund balance would be reduced by $914,000. He said the district used up $2.3 million last year from the fund balance and reserves to reduce the taxes in addition to $1.2 million in cuts.

He said another $677,638 needs to be cut.

Offcicials said the budget Rochelle outlined Monday had an estimated tax rate increase between 6.9 to 7.9 percent in Elma, the largest of the six towns in the district.

The board is scheduled to holda a special meeting at 8:30 a.m. April 13 to approve the final budget figures.

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