GROVES — The Port Neches-Groves Independent School District school board approved a $14,574,998 budget Tuesday.

The board approved a tax rate increase of $1.2840 per $100 of assessed value, which is raised from the current rate of $1.1925. The school tax rate will increase about $216 for the average homeowner, Cheryl Hernandez, district business manager, said.

The average home value went from about $110,000 to $124,000 this year, which will bring more tax revenue to the district, which is building two new middle schools, making improvements to the high school and building a new football stadium.

The increase could have been higher, but the district decided to restrict cash flow by issuing $60 million in bonds this year, instead of the projected $80 million, Hernandez said.

PNG-ISD’s budget reflected a projected enrollment of 4,550 students. In the past week, the number of students increased to 4,778 students, mostly at the elementary level, Dr. Lani Randall, superintendent, said.

Randall noted the budget includes a deficiency of about $181,854 in child nutrition services because of food costs being higher than anticipated. She said the district was determined to keep lunch prices the same as this past year, addressing the “needs of the family.”

Hernandez also discussed the “65 percent rule,” a relatively new plan the commissioner of education has imposed to ensure 65 percent of spending goes toward instruction. PN-GISD has setbacks other districts do not, such as higher insurance costs for hurricane protection than an inland district.

The district must add more money to the instructional fund for dollars it spends elsewhere, Hernandez said.

Contact this reporter at ddoiron@panews.com.