Iowa City School Board members are set to vote on a lower property tax increase than expected on Tuesday, said Superintendent Lane Plugge.

District officials will recommend the board approve an increase of 3.52 percent, according to a budget report by Paul Bobek, the executive director of administrative services for the district.

Board members had originally approved a 7.4 percent increase for publishing. District officials had considered increasing taxes by as much as 15 percent to help alleviate budget cuts.

District officials were able to recommend a lower amount because they received more state funding than expected, Plugge said.

Officials recently learned that state funding deficit to the district for the 2010-11 school year amounts to roughly $3.9 million — around $9 million less of a deficit than they were anticipating.

Board members will vote to approve the property tax increase rate as well as other parts of the 2010-11 school year budget at their meeting Tuesday.

— by Holly Hines