Rising transportation costs are a major driver behind Dunbarton’s proposed $10.5 million school budget.

If approved, the proposed budget reflects a 3.3% increase from last year, requiring taxpayers to pay $18.77 per $100,000 of assessed property value.

School Board Chair Clement Madden said the cost of transportation is increasing due to the challenges bus companies face in attracting and retaining qualified drivers and the expenses associated with maintaining buses.

“Throughout the state, bus drivers have been a hard-to-fill position,” Madden said. “So I think that is putting a lot of upward pressure on pricing from the bus contractor.”

Transportation costs have jumped more than 50% this year, rising from $316,181 to $474,800.

In addition to the budget proposal, voters will also be asked to approve a new three-year contract aimed at boosting salaries and benefits for Dunbarton’s teachers.

The district lags behind neighboring communities in teacher pay. A teacher with a bachelor’s degree in Dunbarton earns $40,101, the lowest in nearby districts like Henniker, Concord, Bow, Goffstown and Pembroke.

The new contract, if approved, would result in a tax increase of $0.42.

Nicole Sloane, vice chair of the school board said that while the contract won’t bring Dunbarton’s pay on par with other districts, it’s a crucial step to getting there.

“Approving this agreement is an investment in our children’s education,” said Sloane at the budget public hearing on Wednesday. “Our teachers play a critical role in shaping their future and providing them with competitive salaries and benefits. Acknowledging  their dedication helps ensure stability within our school.”

The town’s budget public hearing has been moved to Thursday, Feb. 13, at 7:15 p.m. It will be held at the town office, located at 1011 School St. Town meeting is March 20 at 6 p.m. Dunbarton School District annual meeting is March 8 at 9 a.m.  Both are held at the community center.