MILTON -- The Milton school board approved a 2008-09 budget of $25.6 million by a 5-3 vote during Tuesday's meeting. The budget includes $200,000 from the district's fund balance.

The new budget requires real estate taxes of 51.32 mills in Northumberland County and 10.3 mills in Union County. In Northumberland County, the increase is 2.93 mills, or 6.05 percent, and in Union County, the increase is 0.2 mills, or 1.98 percent.

For a property valued at $75,000 in Northumberland County, taxes will be $3,849, up $220, and in Union County, the taxes will be $772, a $150 hike.

Voting in favor of the budget were Cheryl Rheppard, Kelly Everitt, Christine Rantz, Jim Callenberger and Rosalind Hamilton. Brian DeBaro, Valerie Bieber-Mertz and Stephen Connolley voted against it. Cynthia Fawess was absent.

In other matters, the board awarded a 15-year performance contract to CM3 Inc., of Trevose, for $3.6 million. In July, the firm will begin upgrades of lighting, heating and ventilation controls, boilers and other systems designed to save the district as much as $4.2 million in energy costs over the life of the contract.

John Hollister, of CM3, told the board the contract is tied to energy savings, and if savings are not realized, CM3 will pay the district the difference. Hollister said the retrofitting would continue into early next year, with work being done during the evening hours after school starts in August.

In response to a question from Connolley, Hollister said there would be no impact on taxes since the project is self-funded, with reduced electrical demand leading to lower electric bills.

William Clark, superintendent, said he spoke with administrators from several schools in the state that are working with CM3, and all gave the firm high marks.

The board approved a lengthy list of personnel matters, including salary increases for administrators based on their evaluations, granting tenure to 13 teachers, staff resignations, staff transfers and hiring two teachers.