Red Lion Area School District residents will get a tax hike no higher than 2.3 percent next school year.

The school board unanimously voted Thursday to stay within the state's 2.3 percent cap for the 2013-14 budget.

The district has a $3.4 million deficit, according to business manager Terry Robinson. About $1 million in revenue could be created to reduce that deficit if the board passes the full 2.3 percent cap, but it has several months to decide.

A 2.3 percent tax increase would equal 0.51 mills, or a $77 tax hike for a $150,000 homeowner. Red Lion raised taxes 1.5 percent this school year.