Double digit raises, two new schools and a new cafeteria are included in next year's Provo School District budget.

And in addition to the big spending, the district is also expecting big revenue -- 12 percent more than fiscal year 2007.

During last week's board of education meeting, school board officials read through a proposed budget for FY 2008 that includes $121.6 million in expenditures and $108.2 million in revenue.

Although it looks like there's a deficit, the budget actually balances, said district financial analyst Mark Holley. The appearance of a shortfall is caused by bond projects and the way numbers are reported, which skew the figures, he said.

Most of the extra funding this year is from the state or money that was included in last year's bond. The district is also budgeting for $27.2 million in property taxes, which is about $644,000 more than FY 2007.

Although the school district doesn't know yet what the certified property tax rate will be for the coming year, Provo School District business administrator Kerry Smith said they are estimating that with increased property values, the district can keep the rates the same.

"Any time we get more money through property taxes, we have to go through Truth in Taxation," he said, of the meeting that could happen in August if the Utah County Assessor's Office determines the district could receive the extra revenue at the current rate.

Employees will also receive raises -- 12 percent for teachers, 11 percent for classified employees and 10 percent for school and district administration.

Half of the teacher compensation is money appropriated by the Legislature for $2,400 per teacher raises -- coming out to about $1,938 per employee, after taxes.

Even though the Legislature didn't fund raises for district administration, Smith said the district felt like it was necessary to match the teacher raises. The increased compensation packages do not include the business administrator or district superintendent, who have salaries negotiated with the school board.

"Many of the district administrators are former school principals who applied for jobs," Smith said, explaining that the district hopes to continue to attract school administrators to district positions with competitive compensation.

One-time expenditures are also budgeted for next year, including construction costs for Timpanogos Elementary and Lakeview Elementary. The district will also expand the Dixon Middle School cafeteria, install an HVAC system at Centennial Middle School and hire one more human resources position in the district office to help oversee the 3,500 employees the district employs every year.

The proposed budget is available at provo.edu.

The district's school board is scheduled to vote to adopt the FY 2008 budget at 8 a.m. June 21 in the district's Professional Development Center, 240 W. 940 North.

Brooke Barker can be reached at 344-2559 or bbarker@heraldextra.com.

This story appeared in The Daily Herald on page C1.