HOUSTON - It was a simple 4-1 decision but it is probably the most important vote school trustees take every year.

The Houston School Board of Trustees approved a $16.75 million budget for the 2010-11 school year that will fund all salaries, classroom instruction, extra-curricular programs and maintenance for classes pre-kindergarten through 12th grade Monday night. Trustee Dennis Washington casting the lone dissenting vote.

"I pay too much in taxes and I feel there are a lot of people out there like me," said Washington. "We can't cut teacher salaries because they are set by the state. Maybe we need to cut back a little on administrators."

Trustees and school business office personnel have been working, cutting and trimming the budget since early this spring. The district, like most schools across the state, saw a massive reduction in funding from the state.

"I pay taxes, too," said Carol Byrne, school board president. "We have always run this district like a business with a balanced budget and a look ahead. This has not been a easy budget for us."

HSD raised millage on real property for the first time in nine years to make up for the $640,000 cut by the state.

Houston will not hire two assistant principals, two pre-kindergarten teachers and will not fill the teaching posts vacated by three retiring teachers. But the district did not have to let any employees go this fiscal year.

Teachers will only receive state-mandated raises based on qualifications and years of service.

"We did not replace teachers," said Byrne. "We will see larger class sizes, we have cut foreign languages, art and keyboarding at the middle school. These have been very difficult decisions for this board as we try to make ends meet."

Trustees were told last week all departments will see a reduction in planned expenditures - including athletics and other extra-curricular activities.

The bulk of the district's budget, or $9.17 million, will be spent on classroom instruction. The district proposes to pay $2.03 million to service loans, $1.38 million to maintain facilities, $1.1 million for non-instructional services and $862,000 for student transportation in the 2010-11 school year.

Sixty-one percent of the district's budget goes to pay salaries, benefits and retirement and is in line with the state average of 64 percent.

Trustees have repeatedly been told holding the line on taxes this year would probably mean doubling up next year. Mississippi school trustees can raise taxes up to 4 percent without a referendum.

The board must satisfy the Middle School 1991 bond and two, three-year shortfall notes the board obtained in both 2008 and 2009 to balance the budget. The Middle School bond will be paid off in February and the 2008 shortfall note will be paid off in August, giving the district some relief.

The board will need to increase taxes somewhere around 1.8 mills to satisfy the 2010-11 budget. It was also pointed out by not increasing taxes for the general fund, the district's bond maintenance fund would be approximately $25,000 short again next year.

A one mill tax increase would raise approximately $50,000 for the school district.

Houston School District operates a high school, middle school and an upper and lower elementary school serving just over 2,000 students.

The gender makeup of the district is roughly 48 percent female and 52 precent male. The racial makeup of the district is 41.18 percent African American, 52.02 percent White, 6.25 percent Hispanic, 0.45 percent Asian and 0.10 percent Native American.

The district has repeatedly ranked as exemplary or superior in state test rankings.