JEFFERSON TWP — The South Butler School Board will vote Wednesday on adopting its $32.6 million preliminary budget for the 2011-12 school year.

The board discussed the budget Wednesday night.

The budget includes a 1.6 mill property tax increase, bringing the district’s tax rate to 91.27 mills, said Debbie Brandstetter, director of business affairs.

The school board was looking at a deficit of about $1.1 million. The board brought that number down to $855,000 by raising the property tax, and covered the remaining amount with its budgetary reserve, which is $5.6 million.

Of the remaining money in that fund, $1.2 million is reserved for pensions for school employees and $1 million is for capital projects.

The district has eliminated three teaching positions and adopted other cost-saving measures.

In addition, the board will consider increasing revenue by leasing land for Marcellus Shale natural gas, increasing fees, developing a foundation, and seeking corporate and private grants.