(KNZA)--The Hiawatha School Board has approved for publication a proposed 2023-24 budget that contains a more than 1.2 mill levy decrease.

The board took the action when they met Monday evening.

Superintendent Lonnie Moser reviewed the proposed budget.

The budget contains an estimated tax rate of 47.290 mills, which is expected to generate more than $6.8 million in local tax revenue.

Moser said the district's assessed valuation increased about $6 million, which means a mill will generate nearly $149,000.

In an effort to give residential property owners some relief, the capital outlay mill levy was reduced nearly 1.9 mills. However, Moser cautioned it will not be sustainable in future years.

Board President Ian Schuetz noted the part of the budget the district controls will be “ revenue neutral.” However, due to the 20 mill general fund levy set by the state, the school district will exceed the revenue neutral tax rate.

The board will consider adoption of the budget following a public hearing at their September 11th meeting.