Palmerton Area School District continues to whittle down next year's budget one step at a time.

Business manager Matthew Sawarynski on Tuesday updated the school board on the state of the district's 2015-16 spending plan.In January, Sawarynski said estimated revenues were at $28.9 million, while expenditures were at $30.3 million, which left a $1.4 million deficit, assuming no tax increase.Sawarynski said the board later that month approved the Act 1 Tax Levy Resolution, which states that the district's index for the 2015-16 fiscal year is 2.6 percent, and the district will not increase taxes by more than the index.He said at that time that if the board were to raise taxes to the index, it would equate to a 1.36-mill increase.However, Sawarynski told the board on Tuesday that there have been $330,000 in improvements since that time due to better estimates from the Carbon Lehigh Intermediate Unit, specifically with regard to transportation costs.That leaves the district with a $1.1 million deficit at present, said Sawarynski, who again added that takes into account no tax increase.The board has yet to decide whether or not it will raise the property tax rate as part of next year's spending plan.Sawarynski said in January that benefits were up by 13.5 percent, or $870,000, while salaries were set to increase by 3.2 percent.With regard to benefits, he said at that time the district faces a $600,000 increase in the Public School Employees Retirement System, as well as a $250,000 increase for medical insurance.It was also noted that about $41,000 had been cut out of departmental budgets.The board will hold a public budget meeting at 5:30 p.m. May 5 in the high school auditorium.In June, the board approved this year's budget with a 1.94 percent increase in the property tax rate.The board, after three separate votes, had adopted the 2014-15 budget with a 1-mill increase.That budget called for a $28.6 million spending plan that raised the millage rate from 51.44 mills to 52.44 mills, and represented a $435,816 increase over the 2013-14 budget.That means a person with a home valued at $90,000, which would be assessed at $45,000, had to pay $45 more in property taxes to the district.Similarly, a person with a home valued at $140,000, and assessed at $70,000, had to pay $70 more, while a person with a home valued at $200,000, and assessed at $100,000, $100 more.