The South Eastern school board has approved a proposed final budget calling for a 1.25 percent tax increase.

If approved, that would increase the district's property tax rate to 21.47 mills and result in a tax hike of $27 on a $100,000 home and abut $40 on a $150,000 home.

That's below the tax cap of 2.2 percent the state set for South Eastern. And the district had received permission to raise taxes by as much as 3.5 percent.

A tax hike of that amount would have meant $111 on a $150,000 home.

Administrators drafted the current budget proposal after school board members provided direction on what level of tax increase they would be comfortable with.

Superintendent Rona Kaufmann said to balance the budget, the district will not be replacing some retirees. About $900,000 of the fund balance will also be used.

Last year, the district raised taxes by 1.7 percent, which also was below the tax cap.

That was an increase of about $52 on a home worth $150,000.