S-G budget review under way Early look places tax hike at 12%, keyed to benefits, special ed costs By MARY MARTIALAY Gazette Reporter marym@dailygazette.com     SCOTIA — A first look at the Scotia-Glenville schools budget shows increases of $2.6 million, or 7.5 percent, with most of the increase in employee benefits and a new programs for special education students.     Under the superintendent’s proposal, the budget would increase from $35.4 million to $38.06 million.     In a budget presentation at Scotia-Glenville Middle School Monday, Superintendent Michael Marcelle said that in a "worst case scenario," the budget as presented would raise taxes about 12 percent. Marcelle said he is still hopeful for an increase in state aid to education and possibly a townwide increase in property values, both of which would reduce the projected tax increase.     The district Board of Education may also make adjustments until the budget is finalized on April 19. Voters will be asked to approve a budget on May 18.     Last year when the preliminary budget was discussed the district was facing a 20 percent increase driven by cost increases and a proposed 8.5 percent cut in state aid to education. Most of the cut was restored during budget negotiations in the Legislature.     This year, Gov. George Pataki proposed a 1 percent, or $147 million increase in state aid to education.     The district must still contend with increasing costs, the need to improve programs, and a growing population of students. Special education     The most ambitious program change would be the introduction of programs to accommodate certain special education students in the district, rather than paying to send them to out of district programs.     Last year, the district saved $360,000 with two similar programs, one for elementary school students, and another for high school students. The Elementary Skills Program served grades 3-5. The Successful Transition to Employment and Personal Achievement program helps special education students earn a GED, said district spokesman Bob Hanlon.     Although special education costs continue to rise, educating special education students locally stems the increase.     Next year, administrators propose adding a separate elementary school program for grades 2-3, and limiting the ESP program to grades 4 and 5.     The district would also begin a similar program in the middle schools to accommodate incoming students from the elementary school program and additional students.     And the district would add a "Special Education Life Skill Program" at the high school.     Marcelle said that in some cases, the district spends $22,000 to educate a special education student outside of the district as opposed to spending $7,600 locally.     Among cost increase, the single largest increase, $1,114,435, is in employee benefits including the teacher’s and employee retirement systems, health and dental benefits, Social Security, and worker compensation insurance.     Most of those categories are determined by the state and federal government, and not negotiable. But Marcelle said the district will make an effort to hold down costs that are subject to labor negotiations.     School board members asked for a specific breakdown of the $1.1 million benefits increase, and Marcelle said he would make one available.     The district also expects increases in administration, equipment and supplies, utilities, and BOCES costs.     Community forums to discuss the budget have already been scheduled for March 8, March 15, March 22, March 29 and April 5. The forums will be held in the middle school auditorium at 7 p.m.