The city school board Tuesday adopted a 2010 budget that holds the line on taxes for the ninth year in a row.

The general-fund budget is $525.4 million, an $800,000 increase over this year's spending plan.

Officials said district spending essentially has remained flat the past four years, despite increasing costs for utilities, health care, transportation and other items.

Last month, the district unveiled a preliminary budget of $523.8 million, about $800,000 less than this year's spending plan.

Officials said an increase in employer contributions for employee pensions -- approved last week by the board of the Public School Employees Retirement System of Pennsylvania and taking effect July 1 -- pushed the final budget figure higher.

To balance the budget, the district will take $7.6 million from its reserve fund, leaving $57.1 million in the fund.

The board also rejected two proposed charter schools, the Quest International Charter School planned for the North Side, and the Community Service Leadership Development Charter School planned for Hazelwood or East Liberty.

District administrators had recommended rejection of the proposals, citing deficiencies in curricula, special education services and other areas.

Proponents of the schools have said the district simply doesn't want competition. Charter schools admit students without tuition and receive fees from the students' home districts.

The board approved a 61/2-month, $1.8 million contract with McKinsey and Co., a consulting firm that helped the district win a $40 million grant from the Bill and Melinda Gates Foundation.

McKinsey helped the district develop its grant proposal. Now, the firm will help the district implement a series of Gates-backed initiatives to maximize teacher effectiveness.

The board also accepted a $100,000 Buhl Foundation grant that will be used to give teachers mini-grants for classroom innovations.

Buhl's gift marks the 100th anniversary of the Frick Educational Fund. District officials said the mini-grant program will complement the Gates-backed initiatives.

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