The Northern York County school board voted recently to propose a preliminary budget with a property tax increase of 2.6 percent.

The raise in taxes is to the cap, which is set by the state Department of Education.

If the board adopts a final budget with that increase, that will mean a property tax hike of 0.396 mills, or about $59.40 for a person with a property valued at $150,000. The budget for next year includes a $1.4 million deficit, which will be covered by the district's general fund, said Jason Young, district business manager.

There are no cuts to programs or staff, Young said.

"We've held the line in the last few years on that sort of thing," Young said.

Teacher contract: A new teacher contract did limit the salary increases teachers will receive in the next two years, he added, which helped to limit the deficit the district is facing for next year.

The contract was approved last month. Professional staff covered by the contract will receive a salary increase of 1.66 percent in the next two years, Young said. This year, the salary increase was 3 percent, he said.

The contract goes into effect July 1 this year, and will be effective until June 30, 2016.

Healthcare benefit costs will remain about the same as the previous contract, Young said. Employees contribute about 5 percent for a premium share of benefits, he said.

The board will vote to adopt the final budget at its meeting Thursday, June 19.

— Reach Nikelle Snader at nsnader@yorkdispatch.com.