SELINSGROVE — A $32.29 million budget for 2008-09 was approved unanimously Monday by the Selinsgrove school board.

The spending plan carries a 2.8-mill increase that would raise the average tax bill by $73 for a resident who owns a $137,000 home. However, the 4,955 residents approved to receive a $134 property tax credit will see a net tax reduction of $61, district business manager Jeffrey Hummel.

Expenses in next year’s budget are up $1.34 million, or 4.3 percent.

Even with the millage increase, the district had an operating deficit of $370,518. The board closed the gap by using money from the $3.22 million fund balance.

Major areas of increase are in salaries and wages, up nearly 5 percent, or $751,118; the debt service, with a rise of 8 percent, or $353,900; and medical insurance and retirement costs are each up 5 percent, or $119,600 and $110,969, respectively.

An elementary teacher was added due to an increase in the second-grade enrollment.