Residents of the Steel Valley School District may be digging deeper into their pockets when paying their school taxes next year.

The board passed a preliminary budget last week that included a three-mill increase for the 2010-11 school year, which translates to a 14 percent boost from this school year's budget.

Mark Cherpak, director of operational services for the district, explained following Tuesday night's regular board meeting that increased costs in staff salary, retirement plans and health benefit payments led to the tax increase.

"Those three factors were the main factors in the increase," Mr. Cherpak said.

Teachers' salaries and benefits account for nearly $18 million of the preliminary budget. A little more than $1 million of the budget will be consumed by retirement benefits.

Including the millage increase, Mr. Cherpak said district revenue was projected to be $27,489,446. But expenses are expected to be $27,520,328. As a result, the district is facing a shortfall of about $31,000.

Without the boost, the shortfall would pass the $1 million mark, Mr. Cherpak said.

"We're working to whittle that down," he said Tuesday. "The final budget does not have to be approved by the board until June 30, and it does not have to be submitted to the state until July 15."

Mr. Cherpak added that the district was looking to cut expenses in the district by any means necessary.

"There could be cuts of everything from school programs to personnel," Mr. Cherpak said. "Everything is fair game."

The projected increase would take the district's millage rate from 21.21 to 24.21 mills. The previous tax increase occurred in the 2006-07 school year when the district raised taxes from 18.92 mills to its current 21.21 mills.

"This is a work in progress," Mr. Cherpak said. "We are working to bring this under control as best we can."

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