Norwin school directors engaged in a great debate Monday night about whether to raise of the price of french fries served in the high school cafeteria by 25 cents -- from $1 to $1.25

That's the only increase the board is considering.

Norwin School District property owners will not see a real estate tax millage hike for the first time in seven years.

Without debate, the board approved a tentative $54,663,000 operating budget for the fiscal year 2008-09 that begins July 1.

Despite a budget increase of $1.16 million, 2.25 percent above the current budget, district Business Manager John Wilson said no tax increase will be required to support the proposed spending plan.

Last month, Mr. Wilson suggested a 0.65-mill increase would be needed to balance the proposed spending plan.

"However, revenues received since then wiped out the projected deficit," he said.

"How about that?" Director Rebecca Gediminskas said enthusiastically. "For a change, it's good news for taxpayers."

"Considering the uncertain economic situation folks are dealing with these days, I'd call it welcome news," added Director Don Rhodes.

The district's real estate tax levy will remain at 65.15 mills, which includes 1.2 mills collected in behalf of the Norwin Public Library located in Irwin.

One mill of real estate tax levied nets the district $361,000 in revenue.

The average tax levy for Norwin residential taxpayers will remain at $1,433, minus a $93 Homestead Exemption credit that about 10,700 eligible property owners will receive under the state Tax Relief Act.

Norwin will receive about $950,000 from the state gaming revenue pool, Mr. Wilson noted.

"We will deal with details of the Homestead Exemption, and what it will mean to eligible property owners, during our meeting next Monday night," Mr. Wilson said.

The proposed spending plan reflects $955,000 in total cost reductions in employee benefits.

A $647,008 increase in real estate tax revenue, about 2.8 percent, is projected as the result of increased property assessments in North Huntingdon, Irwin and North Irwin.

Other revenue increases are: basic educational subsidy, $535,000; delinquent taxes, $272,000; Social Security and retirement subsidy, $165,000; and special education subsidy, $105,000.

These increases are offset by reductions in investment earnings ($380,000), realty transfer tax ($135,000) and Local Services Tax ($55,000).

Expenditure increases are driven by salaries ($1,704,000), debt service ($343,000) and student transportation ($151,000).

Superintendent Jack Boylan said the board would consider approval of the final budget June 16. The spending plan will be available for public review at the district administration building for 30 days.

Norwin's real estate tax millage is the second lowest among Westmoreland County's 19 school districts, above only Monessen.