Parkland’s school board approved the $167.8-million preliminary budget for the 2016-17 term on Jan. 26.

The amount is $10.1 million higher than the previous year, a 6.43-percent increase in expenditures.

The resolution included a 15.21 mill real estate tax, a preliminary rate which will have to be lowered prior to adoption of the final budget in June.

The state requires school districts to have a preliminary document approved in January for the next school year.

Superintendent Richard Sniscak commented on the situation.

“This is a starting point for a preliminary budget at a time when so many unknowns exist,” Sniscak said. “This is not going to be the final rate in June.

“The administration and board will continue to work for the maximum allowable increase of 3.6 percent with exceptions.”

Under the state Act 1 Index, Parkland would be allowed to increase its present millage rate of 14.35 by 2.4 percent to 14.69.

However, the district would still need additional funds to balance its budget.

By applying for exceptions, Parkland anticipates permission to add 0.17 mills to the rate of taxation, equivalent to a 1.2-percent increase, bringing it up to 14.86 mills, or 3.6 percent higher than the previous year.

Exceptions are provided by the state to help districts cover costs beyond their control, mainly for special education and payments to the State Employees Retirement Fund.

Business Manager John Vignone reported as of Jan. 19, the delta or gap between projected revenues and expenditures for 2016-17 stood at $9.9 million.

By appropriating $6 million from the fund balance and $1.3 million from exceptions, the deficit comes down to $2.6 million.

Administrators will work to whittle this down through a combination of decreased expenditures and increased revenues.

Vignone explained the district will reap some savings through retirements as positions of long-term experienced teachers are filled by individuals lower on the salary scale.

He said assessed values of real estate usually increase during the year providing some benefit.

Another source of relief is the low cost of petroleum.

“This could be a big saving for fuel oil and gas for the buses,” Vignone said.

He noted the district must now wait for the state to review the request for exceptions and to tell Parkland of the maximum tax increase allowed.

The amount will be derived from a combination of the 2.4 percent Act 1 Index and the probable 1.2 percent from the exceptions.