AUBURN — Superintendent Katy Grondin has proposed a $40.14 million school budget, which is 5 percent more than this year.

A total of $20.95 million would come from the state, $17.5 million from Auburn property taxpayers, and $1.65 million from other revenue sources, such as rent and out-of-district tuition.

The budget would increase property taxes by 70 cents per $1,000 of assessed value, or $105 on a home valued at $150,000, Grondin told the School Committee on Wednesday night.

She cautioned that the numbers are preliminary. Revenue estimates from the state “are moving targets” because legislators are still working on the state budget. And some costs, such as health benefits, are not yet known.

Overall, Grondin said the budget maintains existing programs. It would continue quality in schools and initiatives such as customized learning and technology. Grades K-3 have one-on-one iPad tablet computers but the program would not expand. Because of the budget increase this year, it wouldn’t be fiscally responsible, Grondin has said.

The larger increases include $874,135 for special education; $528,888 set aside for labor contracts not yet negotiated; and $173,000 for student support positions and extracurricular activities, including a 2 percent increase in stipends to coaches and stipends for three new middle school coaches.

Auburn received good news when the School Department was told that money it borrowed to maintain buildings can be counted toward Essential Programs and Services, the state school funding formula, Grondin said.

The formula sets percentages on how much money local property taxpayers pay toward education. Auburn had been told in recent years it wasn’t spending enough. School Committee member Tom Kendall warned if Auburn didn’t spend more, it would lose state money.

But now the Maine Department of Education is telling the district is it spending enough when counting what is spent to maintain school buildings.

Last fall, Business Manager Jude Cyr served on the EPS Task Force.

“Through that there was dialogue around local debt and what can be counted,” Grondin said. Through clarification, Auburn was told money borrowed to repair buildings can be counted, but not money spent on any unapproved expansion. An example of an expense that now is counted is money borrowed to replace Edward Little High School’s boilers.

That change meant Auburn schools are credited with spending $1.5 million more toward education. “We thought we were below, but we are not because of the change,” Grondin told committee members. “We’re right where we’re supposed to be.”

Going over revenue numbers with committee members, Cyr said the fund balance account, which is basically a savings account, has $2 million.

The proposed budget would use $900,000 in fund balance money. It’s up to committee members to decide if they want to use more or less, Cyr said.

The School Committee will hold several more budget workshops and meet with the City Council on March 23.

A public hearing on the budget will be held April 1. The public will vote on the budget June 9.