BUTLER TWP — Butler School District property taxes will not be increased more than 3 percent for next year.

The school board Monday night approved a resolution stating that it does not plan to raise taxes above the index set by the state Department of Education — 3.1 percent for Butler this year.

Nick Morelli, acting director of business services, said the administration plans to present a preliminary budget to the school board next month. The district is still waiting on funding estimates from the state and federal governments.

Superintendent Brian White said he will provide the school board with options showing how the district can balance its budget with or without tax increases.

White said that balancing the budget may require some “tough choices,” but the district needs to stop draining its fund balance.

The school district's budget was not balanced for the 2017-18 school year. The budget called for taking $1.4 million out of the fund balance to cover expenses.

Because of its dwindling fund balance, the district learned that its bond rating had been downgraded one notch last year by S&P when it took out a bond issue to pay for roof replacements and other capital projects.