BUTLER TWP — The Butler School Board will take a closer look at whether it will need to raise taxes above the state-mandated maximum for the 2017-18 school year.

The board discussed the budgeting process for the next school year, and board members requested that the administration present a preliminary budget in December.

Deborah Brandstetter, director of business services, will prepare that budget “in the event that (the board) want(s) to apply for an exception,” she said.

Each year, the state sets a maximum allowable property tax increase for school districts, and each board votes to stay below that index. If a district expects to raise taxes above the maximum, it must apply for an exception by January, Brandstetter said.

For the 2016-17 school year, Butler’s maximum was 3.2 percent of the 2015-16 tax rate of 94.8 mills.

The board raised taxes 3 mills in June, bringing the current rate to 97.8 mills.

Board President Nina Teff said she wants to see a very early budget projection in December so she can more confidently vote on whether the district will need an exception, she said.

According to Teff, the board’s vote to remain under the maximum last December was not backed by any preliminary numbers.

“We had no numbers to intelligently make that decision,” she said. An early budget is intended to enable the board to make a more educated decision.

Exceptions are granted for specific, acceptable reasons, according to board member John Conrad.

In recent years, other districts have had exceptions approved for the increasing costs of the Pennsylvania Public School Employees’ Retirement System, which Teff said would be the main reason the district would need a hike above the index.

The district is mandated by the state to make a certain payment toward the retirement fund. For the 2016-17 school year, the district will pay roughly $12.9 million, receiving a state reimbursement of $7.4 million.

That has increased from only $2 million during the 2009-10 school year, and the school’s contribution is projected to be $15.8 million in the 2019-20 school year, Brandstetter has said previously.

Board member Bill Halle said the district has never applied for an exception.

However, Neil Convery, board member, expressed concern about raising taxes significantly when the district has a fund balance of more than $10 million.

“We’re talking about raising taxes on our neighbors,” he said. “There are people that have a big problem with us sitting on over $10 million.”

Teff stressed the board’s request for an early budget does not mean it will raise taxes above the maximum but that the board can make an educated decision about whether to apply for the exception.

“We need to realistically look at if we need to raise it or not,” Teff said.

Brandstetter also said being granted an exception does not always mean taxes will increase significantly.

“There are many districts that apply for it but they don’t use them,” she said.

Brandstetter said she expects the board to take the final vote in January.