PROVO — Flush with cash from bond issuances and state coffers, the Provo School District is looking at $108.2 million in revenue for next school year.

That's 12 percent more than last year's revenue budget of $96.3 million but less than the estimated $121.6 million in expenditures the district is considering for fiscal year 2008.

The Provo School District Board of Education studied a proposed FY 2008 budget on Tuesday and will vote to pass it at 8 a.m. June 21 at district offices, 240 W. 940 North.

State law will also likely require the school district to have a Truth in Taxation hearing in August, although the district has until the end of the month to decide whether a hearing will be necessary.

New property valuations in part of Provo will likely increase revenue for the school district, Provo School District business administrator Kerry Smith said.

The district received about $26 million for FY 2007 from property taxes, and has budgeted for $644,000 in extra revenue for FY 2008.

If the Utah County Assessor's Office determines the district could generate more than $27 million in revenue, the district will call for a Truth in Taxation hearing to lower the rate, Smith said.

"What we expect is that because of the increased valuations, we will be able to realize that revenue at the same tax rate we have this year," Smith said.

Last year's rate was .006147.

Despite the discrepancy between the revenues and expenditures for FY 2008, Smith said he expects the budget to balance.

Extra expenditures for next year include the razing and rebuilding of Timpanogos Elementary, construction of an elementary school in the Lakeview neighborhood and renovations at Provo High.

A new accounting rule requires districts to include individual school budgets in district revenues and expenditures, counting for $3.9 million not reflected in previous years' budgets — which will make the district appear wealthier, Smith said.

Enrollment in the 13,000-student district is expected to remain flat next year, and the district will not receive additional per-pupil money from the state, Smith said.

But state lawmakers funded increases in educator salaries, including a one-time $2,400 bonus, which resulted in large pay and benefits increases: Provo teachers received 12 percent; classified employees received 11 percent; school and district office administrators received 10 percent.

The district will spend next year about $175,000 on new math textbooks; create a new position in human resources; install a HVAC system in Centennial Middle School and expand the cafeteria at Dixon Middle School.

The district will also contribute $3 million to retirement benefits, Smith said.

Three years ago, early retirement and retirement health insurance benefits were a $130 million liability to the school district.

But the district made cuts to the benefits, which were difficult for longtime district employees to swallow, and decreased the liability to $35 million, or $3 million a year.

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E-mail: lhancock@desnews.com