The skyrocketing cost of health insurance and fuel is affecting taxpayers' wallets, and it's no different in the Moravia Central School District.

On Wednesday, the board of education adopted the proposed 2008-09 school budget of $18,551,978, a 5.5 percent increase from last year.

That equates to a projected tax levy increase of 5.5 percent with $6,187,820 to be raised.

According to business administrator Pat Shaw, increased fuel and health insurance costs are contributing factors in the budget increase.

The cost of health insurance has increased 11 percent, she said, and the cost of diesel has jumped $1.77 from last year. District buses drive 400,000 miles a year and consume 40,000 gallons of fuel.

The sixth grade will move from the elementary school to the middle school in order for the district to reduce one administrative position.

Additionally, the district will be establishing full-day kindergarten, for which it needs to hire a new teacher.

In years past the district has given the state funding earmarked for universal pre-kindergarten to the Cayuga County Action Program to run the program, but it is anticipated the district will organize its own pre-kindergarten program for the upcoming school year.

To accomplish this, the district will keep the state aid allotment and hire teachers to run the classes, Shaw said.

Moravia hopes that enrollment doubles, she said, from 20 to 40 students.

A public hearing on the budget is scheduled for 7 p.m. May 13 at the high school conference room.

Taxpayers can vote on the proposed budget on May 20.