A very rough draft of the Plum Borough School District's 2012-13 budget includes a deficit, and officials are working to fix it in the next couple of months.

At a school board finance committee meeting on Tuesday, Gene Marraccini, the district's Director of Business Affairs, presented the $55.7 million budget.

Projected revenues are at $52.8 million, and expenditures are set at $55.7 million, leaving the district with a $2.8 million deficit.

The budget does not include a tax increase. The district's real estate tax rate is 22.2 mills, which generates $1 for every $1,000 of tax assessment.

Due to the state's Act 1 of 2006—or the Taxpayer Relief Act—the district can't raise taxes by more than 1.7 percent, meaning the millage only could be increased to 22.57 mills. If district officials choose to do so, the owner of a $100,000 home would have a $38 increase in annual property school taxes.

According to Marraccini, everal factors are contributing to less revenue for the district: properties are selling below or near original purchase prices, the district will have to refund tax money to Longwood at Oakmont due to an assessment settlement revenues, and he anticipates minimal new housing starts.

State funding also is anticipated to remain the same as in previous years, but that amount is still unknown.

"That's our best guess," Marraccinni said. "We just don't know."

However, officials are looking into implementing a student activity fee for extracurricular activities. Students would pay $75 each (or a maximum of $225 for a family) to participate in sports and other after school activities. This would result in an extra $50,000 for the district.

Superintendent Timothy Glasspool said the $75 would cover all events and opportunities. Though other districts implement additional fees—such as transportation—for any other expenses, it's not "manageable."

Glasspool also said the athletic department is trying to brainstorm fundraisers for students to raise money to pay off the fee.

On the expenditure end, salaries and healthcare contribution cost increases have been factored into the budget. The district's contribution to the Pennsylvania State Employees' Retirement System (PSERS) also dramatically increased by $1.1 million.

The district also is looking at $220,000 to resurface the Plum High School track and repair the concrete supports of the home-side grandstand bleachers.

Major equipment purchases, such as $569,000 for eight new buses and $258,000 for new laptop computers are included in the budget. Last year, the board held off on purchasing buses as a way to lower expenses.

School board member Andy Drake said he wants to take a look at outsourcing the bus services for the district because it might reduce operating/equipment costs.

Currently, the money budgeted for transportation costs are as follows: $1.9 million for operation services, $852,335 for vehicle services, $123,172 for the student transportation supervisor and $30,000 for other costs.

Drake requested the district seek cost estimates for outsourcing the service to determine how much money, if any, the district would save.

School board member Loretta White said she also would like to survey districts that outsource their bus services to see how much they pay compared to Plum.

Officials are expected to continue to discuss the budget over the next few months. A final budget must be approved by the end of June.

The next finance committee meeting will be held on Feb. 21 at 6 p.m. at the high school cafeteria conference room.