Jan 26, 2016 1 min read

CARMICHAELS – Carmichaels Area School Board approved a preliminary $16.9 million budget Thursday night that will allow it to increase property taxes this year in excess of the inflationary index if needed.

The board has made no decisions regarding the budget and probably will not begin the budget process until next month, business Manager Amy Todd said.

Approving an early budget, as required by the Taxpayers Relief Act, doesn’t mean the board will raise taxes above the index, she said, but it gives the board that option should it believe that is necessary.

The district’s index for the year is 0.8 of a mill. For it to exceed the index, the board is required to approve a preliminary budget in January and either receive exceptions from the state Department of Education or have the proposed tax increase approved in a voter referendum.

Todd said the district would seek exceptions for both special education and retirement costs. Special education costs have continued to increase each year and retirement costs are expected to jump this year from 25.84 percent to 29.27 percent of payroll, Todd said.