Saying members were intent on avoiding a tax boost, the Steel Valley school board approved a $28 million budget this week that cuts deep into established programs and relies heavily on uncertain federal funding.

The board voted 5-3 Tuesday night with one abstention to adopt the budget, which will keep the tax rate at 21.21 mills for property owners in Homestead, Munhall and West Homestead.

Hardest hit was the special education budget, cut by $390,000. An additional $72,000 was saved by eliminating the position of director of elementary education.

Spending for administrative support services, which includes benefits for administrators, was increased by $145,000. The district also will spend $600,000 more to pay down bonded debt.

The budget was passed with the understanding that the district will receive $1.56 million in federal stimulus money, which is being held up by the state budget impasse, said Director of Operations Mark Cherpak.

The federal money must be spent on new programs over a 30-month period.

After that time, those programs would need to be funded by the district or eliminated, Mr. Cherpak said.

Should the school district not receive the full $1.56 million, administrators would be forced to dig into the $800,000 budget surplus.

Otherwise, that surplus would be transferred to the fund balance to be used for unforeseen expenses and emergencies.

Board member Pamela Terrick said she voted against the budget because it relied too heavily on money that might not materialize.

"I am not comfortable relying on the state money which might not come through or be as much as expected," Ms. Terrick said.

In other business, the board appointed Diana Borges as director of pupil personnel for special services & elementary education.

The position pays of $95,823 plus benefits and includes some of the responsibilities of the eliminated director of elementary education job.

The board also adopted a resolution opposing Keystone Exams, the plan to introduce standardized state testing as a prerequisite to graduation.

Superintendent William Kinavey said the board was joining 28 school districts in Western Pennsylvania who had already adopted such resolutions because "the governor did not listen to the legislators." Mr. Kinavey also said the testing was an unnecessary burden to taxpayers.