WINDHAM — High school and kindergarten costs account for about half the 14 percent increase in the school district's proposed budget for the 2009-10 school year.

The $39.7 million budget, if adopted, would result in a property tax increase of about $1.60 per $1,000 of property valuation.

The budget number is preliminary and will be adjusted downward once the district receives adequacy grant dollars from the state Department of Education, based on the number of kindergarten students who attend school in August, district finance administrator Donna Clairmont said.

Next August, for the first time, Windham will offer public kindergarten and classes at its own high school for freshman and sophomores.

Clairmont gave the School Board an overview of the budget on Tuesday. Principals highlighted items in their budget requests, as well.

The proposed budget is $4,822,595, more than the current budget of $3.9 million.

The high school budget, which includes operating costs and tuition for the juniors and seniors going to Salem High School, accounts for about 5 percent of the overall increase, Clairmont said.

Kindergarten costs represent about 2.4 percent of the budget increase. These costs include seven additional teachers, seven teacher's aides, an assistant principal and an additional bus. The state is paying for portable classrooms and other costs.

The state mandates that all school districts offer kindergarten by next fall.

Clairmont said contractual obligations, over which the district has no control, account for 3.7 percent of the overall budget increase. That includes items such as debt payment, health insurance, salaries and transportation.

About 2.1 percent of the budget is proposed for hiring new teachers. Principals are asking for five grade-level teachers, a middle school Spanish instructor and four special education teachers.

Enrollment is climbing steeply, Clairmont and principals said.

Golden Brook Elementary School, in particular, will see a dramatic rise in its population, said Principal Beth McGuire.

The school is projected to grow from the current 481 children to 812 students, if all the students eligible for kindergarten attend the school next fall.

While it is mandatory that the district offer kindergarten, it is not mandatory that children attend.

Center School Principal Andy Desrosiers is asking for a two-class portable classroom.

"We really don't have enough space in the building," he said.

School Board members will review the spending requests before proposing a budget for presentation at a public hearing.

The public will vote on the proposal in March.