BUFFALO TWP — The Freeport School Board on Wednesday approved a preliminary 2017-18 budget of $31.7 million that includes property tax hikes.

But district officials don’t anticipate any potential increase reaching those levels.

Board president Dan Lucovich said in an interview the preliminary budget’s inclusion of a 3.9 percent tax hike in Buffalo Township and a 4.9 percent hike in Freeport and South Buffalo was done strictly to secure state approval to exceed its mandated cap on tax hikes.

“This is the worst-case scenario,” he said.

Without that state approval, the district would be limited to increases of 2.3 percent in Butler County and 3.3 percent in Armstrong County.

If the state rejects the request, the district would need a voter referendum to increase taxes higher than the cap.

Due to the district straddling two counties, it uses a state formula that sets different rates for municipalities on either side of the border.

A proposed budget with millage rates is set to be presented in May, followed by an anticipated June adoption of a final budget.

“We’re working diligently to streamline the budget,” Lucovich said.

Under this year’s $30.2 million budget, property taxes rose 5.9 percent in Buffalo and 4.1 percent in Freeport and South Buffalo.

Lucovich said 1 mill of tax generates roughly $133,000 in revenue for the district.