The Red Lion Area School Board approved a 2012-13 budget Thursday that includes a 1.5 percent tax increase, according to a news release.

The tax increase brings the real estate tax rate to 22.38 mills, according to the release. For the owner of a $100,000 home, that would be an increase of about $33 per year.

The district will use about $1.7 million of its fund balance to help balance the budget, the release says. The district had to factor in a $1.1 million increase in state-mandated retirement costs, as well as increased transportation costs and increased tuition for students choosing to be educated outside the district, the release says.

To offset those increases, 18 positions - 11 professional, three support, one administrative, and three contracted services - were eliminated, the release says.