The Nebo School Board on Wednesday adopted a $34 million budget for 1988-89 that will raise property taxes slightly.

Errol Smith, district business administrator, said there would be a tax increase of three-quarters of a percentage point. This will mean the owner of a $76,000 house will pay an additional $5.73 in annual taxes.The district expects to raise $1.7 million more revenue than it did last year.

"The increase in funds reflects growth in our area, not more money from the state," said Superintendent J. Wayne Nelson. "It is a very tight budget. Insurance costs went up $400,000, and we just had to absorb that."

Smith said the salary schedule for teachers will not increase, but teachers meeting certain requirements could get raises.

Nelson said the district's absorbing increased insurance costs could be viewed as an increase in benefits, but he said he doubts most district employees would see it that way.