The Central York School board adopted a 2012-13 school year budget Monday night that includes no tax increase and a slight increase in expected state funding.

The $74 million budget includes a $275,000 deficit that the district will cover using fund balance, according to business manager Brent Kessler. It also includes a transfer to the district's capital reserve fund of $325,000. The capital reserve fund is used for construction projects and large purchases related to building maintenance.

The board also approved a tax rate of 17.76 mills, the same rate as last year. That would be $2,664 in taxes for a $150,000 home. This is the second year Central York has not increased taxes.

Earlier this month, the board learned it may receive additional funds from Title I funding and a state accountability block grant.

Board vice president Timothy Bieber asked Kessler, based on the district's budget history, if it were possible the board is actually passing a net budget of zero. Kessler said the district is projecting a $300,000 surplus from the 2011-12 year, but said that will not be confirmed until the books are closed out on June 30.

Board president Michael Wagner added that the increases expected in state funding will also not be confirmed until the state passes its budget.

"We're going to have to pass the budget with some assumptions," Wagner said.