The Spring Grove school board has until Feb. 1 to decide whether to limit the district's 2011-12 tax rate to a 1.8 percent increase or less.
The board plans to adopt a resolution on Jan. 17 announcing that a preliminary budget will be available for review at the district office through Feb. 7.
To date, the board and administration have reviewed projected revenue, as well as cost containment and cost elimination options.
District business manager George Ioannidis predicts a revenue increase of about 0.5 percent, or $355,347, if the district does not increase the tax rate.
Expenditures are increasing by 5.8 percent, or nearly $3.3 million.
Revenue for the 2011-12 school year is projected at about $55.1 million, while expenditures are expected to be over $60 million.
The 4 percent salary increase dictated by the teacher's union contract is contributing to $1 million in additional salary expenses. The district's health care rate is set to increase by 15 percent; its transportation contract by 3 percent.
Spring Grove may raise taxes 1.8 percent without seeking exceptions from the state or voter approval.
Spring Grove should qualify for an exception that would allow it to increase taxes by 5.6 percent. Ioannidis said it is possible that the district qualifies for additional exceptions.
He said he will have those figures available to the board at the Monday, Jan. 17 meeting.
Ioannidis said a 1.8 percent tax increase would generate $516,226 for the district.
-- Reach Jen McGurn at 854-1575 or firstname.lastname@example.org.