BUTLER TWP — The final proposed budget for 2016-17 for the Butler School District, which will be preliminarily voted on next Monday, has a proposed deficit of $3.9 million, up from previous estimates around $2.8 million but down from the initial deficit of $6.9 million.

The final proposed budget was presented by Deborah Brandstetter, director of business services, to the board during its finance committee meeting on Monday evening, and the board will vote on the budget at its next meeting on Monday.

That budget must then be on public display for 30 days before the final vote is taken in June.

The budget includes $100.5 million in revenues and $104.4 million in expenses, according to Brandstetter.

On the revenue side, the district will receive an estimated $49.8 million as local revenue, which is 49.6 percent of the budget.

The local revenue total assumes a property tax increase, the maximum allowed by the state: 3 mills.

This would make the district’s real estate tax rate 97.8 mills. At the current tax rate of 94.8 mills, the average property owner pays $1,696 per year. At 97.8 mills, that would rise by $53 to $1,749, said Brandstetter.

In total, the tax increase would give the district an additional $1.3 million.

Another 47.8 percent of total revenue comes from state revenue, an anticipated $48 million.

For state revenue, the district anticipates a 3.7 percent increase in total state funding, including the basic education subsidy and the state reimbursement for retirement payments.

In the 2015-16 school year, the district received $46.3 million from the state.

In total, final proposed budget projects $3 million extra in revenue from the current school year. This year, the district recorded roughly $97.4 million in revenue.

On the expense side of the budget, roughly $72.7 million will be spent on salaries and benefits. Another $13.1 million will go toward purchased services, such as transportation. Another $8.2 million goes toward the district’s financing services, such as $7.7 million for debt service.

The district is mandated by the state to make a certain payment toward the Pennsylvania Public School Employees’ Retirement System. For the 2016-17 school year, the district will pay roughly $12.9 million for retirement funding, receiving a state reimbursement of $7.4 million.

For this school year, the district has paid $10.9 million, receiving about $6.2 million from the state. Brandstetter pointed out that during the 2009-10 school year, the district paid only $2 million to the state for PSERS, and the school’s contribution is projected to be $15.8 million in the 2019-20 school year.

The proposed budget includes a $1.3 million technology upgrade that the board previously discussed financing.

However, the board decided it would be better to purchase the technology outright. The update will add smart boards in kindergarten to third-grade classrooms and expand wireless access networks.

In addition, the proposed budget adds a position for a district grant writer at a salary of $50,000. Board member Suzie Bradrick brought up the idea of adding a grant writer at the board’s previous finance committee meeting on May 2.

Ideally, Bradrick said, the grant writer would bring far more money to the district than he or she would cost the district.

Previously, the proposed budget included increases for activity and parking fees as well as the addition of a fee for students participating in band and the musical. Brandstetter, based on board feedback, removed those items.

Board President Nina Teff said increasing those fees would only bring in an additional $53,000 in revenue. The athletic fee will remain at $60 and the parking fee at $75. Students who participate in the school musical or band will not pay any fees.

The district anticipates a $10.1 million reserve fund balance at the start of the 2016-17 school year. With the projected $3.9 million deficit, the district could use the reserve and end up with about $6.2 million.

The board will vote on the expense amount of $104.4 million at its meeting next week. Once that preliminary budget is approved, the district will have the budget available for public review for 30 days.

The final budget will be voted on in June, and the district cannot vote to pass a budget that spends more than the amount approved by the preliminary budget, $104.4 million.

The district is required to pass a final budget by June 30.

The board’s next meeting is at 7:30 p.m. Monday at the auditorium of the senior high school, 120 Campus Lane.