School District of Lancaster board members and district residents will learn next month what up to $6 million in spending cuts might look like in the district's 2012-13 budget.

Following a rather dire presentation Tuesday on next year's spending plan, the board instructed the administration to develop proposals to cut $2 million, $4 million and $6 million from expenses next year.

The cuts will be needed to help SDL bridge a revenue gap expected to total about $7.5 million.

SDL chief financial officer Matt Przywara told the board the district is expected to get about $550,000 less than anticipated under Gov. Tom Corbett's budget proposal.

The district also may be receiving smaller reimbursements from the state next year on construction projects, Przywara said.

Meanwhile, it faces a 42 percent increase in pension costs, a 2 percent increase in personnel costs and other expenses and an 8 percent hike in health care expenditures.

SDL increased its surplus this year and expects to end 2011-12 with an undesignated fund balance of about $11.5 million, some of which could be used to cut next year's deficit.

But board members couldn't agree Tuesday on how much, if any, to use to plug the funding gap.

Although they took no votes, they did agree that the board would rather not raise taxes beyond the district's Act 1 index of 2.4 percent for '12-13, even though SDL may be able to boost its tax rate by up to 4 percent.

A 2.4 percent increase — averaging about $71 per homeowner — would generate about $1.5 million in additional revenue, cutting the deficit to $6 million.

Board members agreed they'd like to see what cuts of $2 million to $6 million would look like as they begin to deliberate next year's final spending plan.

Member Charlie Crystle suggested the administration come up with a plan to implement "aggressive" cuts over the next two years and then no major cuts to the programs and services that remain for the next three years to provide some stability for staff members who are facing major cuts for the second year in a row.

Several teachers and counselors have contacted him to express concerns that their jobs will be eliminated, Crystle said.

SDL trimmed its teaching payroll this year by more than 100 positions and eliminated its elementary Spanish program and most school librarians in response to a steep decline in state funding.

Board members and administrators did not provide details Tuesday on what might be cut for '12-13.

The proposed reductions are scheduled to be presented at the board's next work session, on March 13.

bwallace@lnpnews.com