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The Spring Grove school board’s preliminary budget proposal includes a 3.2 percent tax increase for the 2017-2018 fiscal year.

The proposed general fund budget cites expected total revenues of $64.9 million and expenditures of $68.9 million. The expected shortfall of almost $4 million would be covered by the general fund.

All school board members present at Monday's meeting quickly voted in favor of the proposal, which was approved with a budget notice for public inspection and advertising.

Each 1 percent increase equals approximately $350,000 in revenue for the district.

The budget would increase the millage rate to 22.6768 mills, up 0.7031 mills from the 21.9737 millage rate for the 2016-2017 fiscal year.

The 3.2 percent increase is the tax increase limit set for Spring Grove by the Pennsylvania Department of Education. For any increase beyond that, the district would need either approval through a referendum or an exception from the state. However, in November the board voted to limit any tax increase in the budget to 3.2 percent.

An area’s millage rate is the amount per $1,000 of property value paid in property taxes. The 0.7031-mill increase would constitute a $70 increase for a property in the district with a fair market value of $100,000.

Board members will discuss any changes or adjustments at their next director’s study forum meeting, to be held May 1. The vote for the final budget will be May 15.

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