FOXBURG, Clarion County — Trying to avoid a loophole of a new law that governs school budgets, Allegheny-Clarion Valley School District passed a preliminary budget months earlier than needed.

School districts in the state that plan to raise property taxes above an index that factors in inflation were required to pass a preliminary budget this month under Act 1. Those that don't plan to raise taxes above that percentage index may pass a resolution to that effect and then follow the traditional budget timeline that calls for a preliminary budget in May.

A-C Valley plans to stay under the index, but Monday it passed a preliminary budget.

Districts seeking an increase above the index can avoid a referendum on the primary ballot by applying to the state if extraordinary expenses are the reason for exceeding the index.

For example, Karns City School District plans to apply to the state to allow a nearly 9-mill increase for its Butler County residents because special education and retirement costs were above the rate of inflation.

The state also will consider allowing districts to raise taxes above the index if a disaster strikes.

That's what A-C Valley was concerned about. Superintendent Pat Lukasavich said the school board decided to pass the budget now because if something catastrophic happened — like a large amount of snowfall caused all the district's building roofs to cave in — just after the district said it wouldn't increase taxes, it would be stuck.

So, the district met the Wednesday deadline to pass a preliminary budget, leaving the window open to apply for exceptions.

"Since it had to be completed so early, there are a lot of uncertainties," Lukasavich said.

About 89 percent of the expenses can be predicted from three areas: salaries and salary benefits, health care, and fixed costs, usually spelled out in contracts.

But the remainder of the expenses, mostly for direct classroom instruction, is nearly impossible to predict now, Lukasavich said.

A-C Valley's solution was to leave all line-items at the same level as last year and to set some money aside. The money set aside will be distributed once school officials know enrollment numbers and other variables, Lukasavich said.

"It wouldn't be fair to ask teachers what they needed now," he said.

Additionally, the state's contribution to the district, typically about 50 percent of the budget, is uncertain. The state budget was proposed only last week and faces certain change as it works its way through the House and Senate.

As a result, the $11.3 million budget calls for a 0.02-mill increase in Butler County, a 1.23-mill decrease in Armstrong County, a 2.93-mill increase in Clarion County and a 0.24-mill increase in Venango County.