FREDONIA — To merge or not to merge. That was the issue debated Tuesday night in the Fredonia High School auditorium, where residents of the Fredonia and Brocton central school districts were presented an array of facts and figures representing the financial future of each district.

District Superintendents Paul Di- Fonzo of Fredonia and John Skahill of Brocton, and Joseph Reyda, Fredonia’s director of instruction and chief information officer, painted the financial pictures.

Officials noted that because of the state budget crisis, both districts can expect to see tax increases, staff and program reductions and further depletion of fund balances and reserves. Skahill noted that when a fund reserve is depleted, it is no longer available to cushion tax hikes or prevent staff and program cuts.

Because of year-to-year increases in district operational costs, staff retirement increases and anticipated state aid reductions, Brocton’s 2010-11 budget could increase $1 million, requiring a 30 percent tax hike, Skahill said.

He said he did not think the board or Brocton taxpayers would agree to this. As a result, he said, he would have to use the district’s fund balance to lower the enormous tax rate and at the same time consider a reduction in programming and staff.

Fredonia faces similar problems going it alone. DiFonzo said he would expect a budget increase of $2.1 million because of annual district operational costs, staff and retirement cost hikes and anticipated state aid decreases, resulting in a 17 percent tax increase.

He, too, would have to make a decision to use the district’s reserve fund and consider programming and staff reductions to lower the rate. Reyda noted the erosion of a school district — due to student enrollment decline and cost increases—is a slow process and likened it to starvation.

With a merger, the two districts, through shared services, staff and space, in combination with reorganization incentive aid from the state, could see a first-year savings of $2.13 million. Some of those savings would come from renting Wheelock Elementary School to outside concerns.

In a separate meeting before the joint session, the Fredonia School Board heard a preliminary report suggesting there would be no problem in bringing all students from Wheelock to the district’s main campus, which now houses the middle and high schools.

The district currently rents space at Wheelock to Buffalo Speech and Hearing and also BOCES. Officials pointed to other possible interest in renting space at the school, even the village Police Department.

Both boards meet in joint session again at 7:30 p. m. Nov. 19. in the Brocton school auditorium. It is anticipated that a date will be scheduled for a straw vote on the proposed merger.