JEFFERSON TWP — The South Butler County School Board has approved a one mill property tax increase for the 2016-2017 budget, which totals $36.5 million.

On Wednesday the board approved the budget with the tax increase that will raise taxes $21 a year for the average property owner, according to Paul Slomer, director of business affairs. The vote was 7-1. Voting against was James Jones.

The current tax rate is 93.2 mills, and next year it will be 94.2. The one-mill tax increase will generate another $169,000 for the district, Slomer said.

Total revenue is projected at $34.5 million, with $20 million coming from local revenue. Of that local revenue, property taxes account for about $15.2 million, Slomer said.

Expenses will be $36.5 million, Slomer said. For 2016-17, salaries and benefits will account for 66 percent of the budget, with benefits alone increasing $900,000, he said.

The district’s payment to the state for the Pennsylvania State Employees’ Retirement System will increase $870,000 next school year, bringing the school’s state-mandated amount to $4.3 million, Slomer said, calling that cost “a significant burden” that the school cannot change.

While the state will reimburse the district for about half of the payment, the district still will pay $2.2 million.

The fund balance will make up the remaining budget deficit of $1.5 million, Slomer said.

The budget reflects rising costs for the district, which the administration has been trying to control by analyzing and cutting costs, according to Superintendent David Zupsic.

“I think the budget is reflective of the economic conditions the district is facing,” he said. “This budget will allow us to maintain the level of the service we give students.”

In addition to passing the final budget, the board approved increasing elementary and secondary lunch prices to $2.35 and $2.60, respectively, a 5-cent increase from this year.