SLIPPERY ROCK TWP — The Slippery Rock School Board on Monday passed a preliminary budget for 2014-2015 to see if the district is able to increase taxes above a state-imposed limit.

Business manager Paul Cessar presented a $29.4 million budget with a $700,000 deficit, which would require a property tax increase of $5.5 million.

However, the state’s Act 1 index does not allow the district to increase its tax rate more than 2.5 mills, which would only generate $324,000.

A mill generates $1 in tax for every $1,000 of a property’s assessed value. The current millage is 89.15 mills.

Cessar said that by passing a preliminary budget in February, the district is allowed to seek exceptions to Act 1 to increase taxes above the limit if necessary.

He said the full picture still is unclear, including the state budget, which greatly affects the district’s budget.

The district budget will change over the next few months. Cessar said passing a preliminary spending plan is a way to keep the district’s options open “until we get a full understanding of the state budget.”

He said the board will discuss the budget in March, April and May. It is scheduled to pass a final budget on June 23.

Even if the exceptions are granted, that does not mean that taxes will increase.

The district last year passed an early budget for this fiscal year as well. The budget started off with an $850,000 deficit, requiring 6.5 mill increase to close while the Act 1 tax increase limit was 2.3 mills.

After passing an early budget, the district was granted some exceptions by the state.

However, the school board chose not to use the exceptions and balanced the budget through other means. The board in June passed a $28.4 million budget with no tax increases.

For the 2012-2013 fiscal year, the district also was granted exceptions, but chose to balance the budget without increasing taxes.