The Provo school board approved a $121.7 million budget Thursday that includes an additional $3.2 million in funding for teacher salaries and a property tax rate decrease for Provo property owners.

"Unless someone's home was assessed this year, people will pay less," said Kerry Smith, the district's business administrator.

The district could have generated millions of dollars in additional revenue by holding the property tax rate the same as this year, but board members, Smith and Superintendent Randy Merrill felt it wouldn't be fair to the taxpayers, especially when the district doesn't need the additional money.

"We would have seen a huge increase by holding it steady," said Merrill. "We are actually changing it in a good way."

The district will hold a Truth in Taxation hearing in August to adjust the tax rate to 0.005239 percent. The rate is 0.006147 percent now, and it had been estimated at 0.005133 percent for the 2008 fiscal year.

Smith said the adjustment is necessary to keep up with inflation and compensation increases.

The budget passed 4-1, with member Sandy Packard voting against the budget.

New state requirements for reporting the budgets include adding the student activity fund to the total expenditures and revenue. Previously, individual schools were responsible for their accounts.

Provo was among three districts to adopt the policy this year. Packard wished more information on previous years would have been included in the budget on the fund.

Less one-time items, including the sale of Joaquin Elementary and the bond, the district will be operating on $104.4 million and spending approximately $103.4 million in the coming year.

This story appeared in The Daily Herald on page D5.