PROVO — Several state legislators asked tough questions Tuesday about the Provo School District Board of Education's desire to issue $35 million in bonds.

The school board outlined the district's recent financial moves for five members of Utah County's legislative delegation Tuesday morning, then discussed the June 27 bond and voter leeway election. School district officials hope legislators will support the bond.

If voters approve the bond issuance and leeway, property taxes would increase incrementally for three years. By 2009, they would total $65 on a $100,000 house — $41 for the bonds and $24 for the voter leeway. The district would use the bond money to replace one school, build another and undertake major remodeling projects.

The annual $1.5 million generated by the leeway increase would pay for teacher salaries and benefits and for increased energy costs.

"I'm not speaking for or against the bond," said Sen. Curtis Bramble, R-Provo. "You've had an unprecedented increase in the WPU (state funding for education.) You're going to use capital assets for salaries. It looks like the benefits are very rich compared to other districts I've seen. Then you're going to taxpayers and asking to increase two things."

Bramble and Senate President John Valentine, R-Orem, asked district administrators why proceeds from the sale of Joaquin Elementary School were not going directly into the district's capital assets fund. Joaquin was built in the 1930s and closed last year because the district determined remodeling was too expensive.

The district sold the school for $6.5 million. It plans to use the money, if the sale closes in December, to pay off short-term, high-interest debt incurred in 2002, before the current superintendent, business administrator and much of the school board were in place. The new administration has balanced the district budget.

In contract negotiations with the teacher's union, the school board also promised to consider using money from the Joaquin sale to give teachers a one-time bonus.

The short-term, high-interest debt was incurred to pay for capital expenses, said district business administrator Kerry Smith. The debt will be wiped off with the Joaquin sale proceeds, so the district can focus on investing in capital assets in the future.

"So it's a long-term plan, and I think a very good long-term plan," Smith said.

"We've spent a huge amount of time fixing this budget and being open with the public," Superintendent Randy Merrill said in response to Bramble's question. "Senator, we need your support."

As recently as 2003, district officials said, the budget was not being reworked from scratch each year based on anticipated revenues. Accountants simply added funding increases from taxes and the Legislature to budget amounts used in the previous school year, even if there were budget items that were no longer applicable, such as debts that were paid off.

House Majority Leader Jeff Alexander, R-Provo, said the district is going to have a tough time convincing the public it can spend money wisely.

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E-mail: lhancock@desnews.com