Gateway School District will receive about $172,000 more in state funding than it anticipated, thanks to the new $9.7 billion state education budget Gov. Ed Rendell signed.

District officials budgeted for $9,241,690 in state funding for 2008-09, but the district instead will get $9,414,076, according to Paul Schott, district business manager.

The district's basic education funding from the state increased by $98,474, special education funding decreased by $23,650, Pennsylvania Accountability Block Grant decreased by $4,681 and charter school reimbursement increased by $102,243.

The Legislature increased overall education funding by 3 percent and state basic education subsidies by 5.5 percent and provided a 40 percent increase in charter school reimbursements to districts.

Each district's level of state funding is based on an "adequacy target," the level of resources necessary for students to succeed, which is based on the General Assembly's "Costing-Out Report."

The funding formula is based on actual enrollment levels and takes into account district size, regional cost differences and the number of low-income students and students learning English as a second language.

The Gateway board in late June unanimously approved a $62,512,000 budget that does not contain a tax increase. Board members Dawn Neilly, Jim Rosipal and Cindy Falvo were absent from the meeting.

The property tax rate of 19.41 mills has stayed steady for four years.

The 2008-09 budget, which went into effect on July 1, represents an increase of 2.36 percent compared to the 2007-08 budget.

One large increase in the current budget is health care costs, which have risen by $423,360 compared to the 2007-08 budget.

The district used $342,000 from its fund balance for the 2008-09 budget.

Gateway will not fill 11 full-time and part-time positions at the elementary level that became vacant because of retirements, said Robert Reger, assistant to the superintendent.

Those 11 positions are not being filled because of decreased enrollment at the district's five elementaries, which has dropped by a total of 216 students in the past four years, he said.

The approved Gateway budget includes $37.7 million for instruction, $19.5 million for support services, $4 million for debt service and $1.1 million for student activities.

Staff writer Zandy Dudiak contributed information to this story.