JEFFERSON TWP — The South Butler School District will probably raise property taxes two mills this year to fund its proposed $33 million, 2012-13 budget.

Although two mills would bring in an additional $324,513, the preliminary budget presented Tuesday morning to the district’s finance committee still would have a $290,842 deficit.

The district plans to close the deficit with reserve funds, and make up some state education funding cuts with grants and other alternative revenue being pursued. Also, student activity fees once again are being discussed.

Under the proposed budget, five teachers retiring this year will not be replaced, nor will two maintenance staff retirees. One maintenance staff member will be laid off, and the district is not ruling out more staff cuts, said Dale Lumley, superintendent.

As for student activity fees, the administration will recommend to the board that students begin to pay $15 to participate in a club, $30 to participate in a sport, and increase the cost of a parking permit from $50 to $100.

The district also is considering hiking ticket prices for sporting and cultural events.

The school board in May will vote on the preliminary budget. It can then be reviewed by the public for 30 days until a final budget is passed in June.