Montoursville Area School Board Tuesday night passed a resolution to not exceed the district's index in the coming school year.
The resolution, passed unanimously by school directors, prevents the district from raising real estate taxes by any more than 0.29 mills in support of next year's spending plan.
Under Act 1 of 2006, school districts are required to limit increases to the level set by an inflation index unless the tax hike is supported by voters in a referendum or exceptions are allowed through the state Department of Education or the courts.
"This resolution has nothing to do with raising or not raising taxes," explained Business Manager Robert Saul. "It only says we can't exceed the index."
The last tax hike in the district was two years ago.
Board member Dale Ulmer said he has every hope that there will be no tax increase next year.
The district is looking at increased spending for health insurance, salaries and pension costs.
However, the district has been building up its reserve fund to cover increased expenses.
Kim Sauers, director of curriculum and instruction, reported to the board that the district's Title I funding is expected to decrease this year.
The funding is based on the percentage of residents in the district living below the poverty level.
Sauers said the rate decreased from more than 12 percent to just under 9 percent.
Most recently, the district's Title I funding exceeded $200,000.
Sauers said he was not quite sure what the funding decrease will be.
"We are going to take a pretty good-sized drop," he said.
In personnel matters, the board approved the hiring of Michele Taylor as a part-time cafeteria worker at a rate of $7.75 per hour.
School directors voted to adjust the salary for junior varsity coach Stanley Burke from $2,700 to $3,840.