The Erie School District’s budget for next year may include a tax increase.

During Wednesday night’s school board meeting, officials received their financial projections from public financial management.

The tax projections state that within five years, the school district will have a negative fund balance. About 50% of the school’s funding comes from state subsidies and not local tax revenue.

The board is going to vote next week on a preliminary budget that does include a 2.46% tax increase. School officials say inflation across the county is starting to take a toll on the school district.

“If we don’t act now and have those cost-of-living increases that are equal to the tax increase each year then we could find ourselves in financial trouble again,” said Neal Brokman, Erie’s Public Schools assistant superintendent.

Public Financial Management is the same firm that worked with the district when they were in financial watch status with the state.