BUTLER TWP — The Butler School Board will decide at its Monday meeting whether to limit any property tax increase to the state-determined maximum rate.

That rate is 3.2 percent of the district’s property tax rate of 94.8 mills.

The current rate means a property owner pays $94.80 for each $1,000 of a property’s assessed value.

The maximum rate could push the rate up by 3.03 mills, for a total of 97.83 mills.

Anything above the maximum rate would require the board either to get voter approval in the spring primary or to apply to the state Department of Education for an exception.

Historically, the board has not raised taxes more than this maximum rate and has not had to request an exception, said Superintendent Dale Lumley.

Last year, the district did not raise taxes, making board President Nina Teff and board member Bill Halle question if the maximum raise would be enough for the district’s increasing expenses.

Deborah Brandstetter, director of business services, said the board decision last year not to raise taxes went against her recommendation.

The primary driver increasing expenses is the pension fund through the Public Schools Employees’ Retirement System. The annual cost is state-mandated and typically increases by $1 million or $2 million a year, Lumley said.

“We can’t control that growing cost,” Lumley said, stressing the cost is dictated by the state and the district is responsible for finding the funding in its budget.

Lumley considers the current millage to be fairly high and hopes the board would agree not to raise taxes more than the 3.03 mills allowed by the state.

While Halle and Teff expressed concerns with the district’s financial future, Brandstetter explained any proposed 2016-17 budget would be a “shot in the dark.”

Since the district still does not know what to expect in financial aid from the state for this academic year, the potential projections for 2016-17 may not be accurate or useful, Brandstetter said.

“It’s premature to know if we need to raise the taxes and how much we would need to raise them,” Lumley said.

Brandstetter recommends the board pass the resolution agreeing not to exceed an increase of 3.03 mills.

However, one of the exceptions to the maximum tax rate hike that the state can allow is for district pension payments. The board will vote on the matter during its Monday’s meeting when Brandstetter will have more information on the tax issue to present, she said.