Hanover — Hanover and Norwich residents approved all school budgets for the two-town SAU on Tuesday and decided a contested Hanover School Board race in favor of three incumbents.

The approval of all school spending requests sets up anticipated tax increases of $40 on a $400,000 house in Hanover and $104 on the same property in Norwich.

The $13.8 million Hanover School District budget, which covers the Ray School, is rising nearly 1 percent including outside warrant articles. Residents passed the operational budget itself by a vote of 363-58.

On the Hanover School Board, incumbents David Sobel, Mimi Lichtenstein and Carey Callaghan won re-election over newcomer Richard Johnson in a four-way race for three seats. Callaghan drew 357 votes, Sobel 305, Lichtenstein 281, and Johnson 167.

Spending at Marion Cross School in Norwich will increase by 2.1 percent to $5.57 million. The budget, which residents passed 666-394, does not include anticipated costs from pending contract negotiations with teachers, which are headed to mediation.

Voters in both towns approved the Dresden school districts $26 million proposed spending plan, 1,037-408, an increase of about 2.5 percent. Hanover and Norwich share Dresden’s costs in proportion to their student enrollment.