POPLARVILLE — Based on three proposals, Pearl River County supervisors on Wednesday traveled down the middle of the road in adopting a new county budget and millage rate increase, that will actually see residents of a major portion of north Pearl River County getting a tax break.

That break comes because of an old beats one, two and three four-mill Pearl River County Hospital tax levy being canceled and turned into a countywide one-mill hospital levy, an action required by state law.

That will reduce taxes for homeowners north of a line drawn near McNeill by three mills, and the supervisors only needed to raise taxes 2.39 mills to support a general fund budget of $15.2 million, which they adopted. However, it took two board votes to pass the new budget.

The $15.2 million figure will require some cutting of line items, and supervisors were still meeting Wednesday afternoon looking for additional cuts to bring the budget in line.

The new 2012-13 $15.2 budget represents a $500,000 increase in funding over this year’s $14.7 million budget. Supervisors spent all Wednesday evening tweaking line items in the budget to bring expenditures into line to match the overall $15.2 million budget figure that was adopted.

The new general fund operating budget moves the millage rate supporting that budget up 2.39 mills from 34.66 mills to 37.05 mills for next year. The overall budget of $34.2 million is raised 4.33 mills from 50.39 mills to 54.82 mills next fiscal year. The general fund budget is included in the overall county budget.

It took two votes to pass the $15.2 million general fund budget, after supervisors heard from approximately four residents who criticized the budget process and told supervisors they did not want an increase in taxes.

After the budget figure was nailed down by 3-2 vote on the second effort, supervisor J. Patrick Lee, who is also board president, said the new budget would result in some residents paying less in taxes. He cited his own home as an example, saying under the new budget and millage rate he would pay $26 less per year.

But if supervisors passed a budget increase, how can they be paying less taxes?

It’s because, officials said, property values have fallen and a mill applied to the value of a home will generate less money.

Supervisors first tried to squeeze through a proposal by County Administrator Adrain Lumpkin, Jr., who in August proposed a $15.5 million general fund budget supported by a 3.66-mill increase over last year. Lumpkin’s proposal was $800,000 over last year’s general fund budget.

That proposal failed by a 3-2 vote. Supervisor Anthony Hales, Sr., made the motion for implementation of Lumpkin’s proposal, which was represented as Alternate C, the highest of three proposals, and Lee passed the gavel to board vice chairman Sandy Kane Smith so he could second Hales’ motion. Only Hales and Lee voted for the Lumpkin proposal and Smith, and Supervisors Joyce Culpepper and Dennis Dedeaux voted no.

When Alternate C, failed, supervisors tried again. This time Joyce Culpepper made a motion for Alternate B, which was for a $15.2 million general fund, supported by a 2.39-mill rate to support it.

She said she was moving for Alternate B because it would represent the least pain on the part of county personnel. She and Lee both said that adoption of the third Alternate A, $14.5 million, would result in a large number of layoffs. Alternative A was $200,000 below the current $14.7 million general fund budget.

Again, Lee had to pass the gavel to Smith in order to second Culpepper’s motion. This time Alternate B passed 3-2, with Hales, Lee and Culpepper voting for it and Smith and Dedeaux voting against it.

The approval of Alternate B at $15.2 million represented a middle ground between the $15.5 Alternate C proposal of Lumpkin and the $14.5 million Alternate A proposal, which would have prompted cuts deep enough to cause layoffs of personnel.

In making the motion, Culpepper said, “I favor Alternative B because it does the least harm.”

While supervisors managed to squeeze their millage rate down, they had additional millage rates to apply to the current rates to support three school districts in the county: Pearl River County school district at Carriere 3.81 mills, from 59.73 mills to 63.54 mills; Poplarville school district 3 mills, from 57 mills to 60 mills; and Lumberton Line school district 5.34 mills, from 50.73 to 56.07 mills.

Supervisors by state law have to apply the millage rate that will generate the amount of funding requested by school districts. They have no control over the school millage rate.

Supervisor were facing a Sept. 15 deadline to adopt a budget. The new budget will take effect on Oct. 1, the start of the new fiscal year.