The Exeter Region Cooperative School Board discussed the 2013-2014 operating budget on Tuesday evening and due to increased contributions to the state retirement system plus an increase of just under $602,000 to teacher contracts may force the board to institute teacher  layoffs. Contractual obligations will see an increased retirement contribution, a 10 percent increase to health and dental coverage, and $601,800 increase for the second year of the teachers' contract. There was some good news. Money expected to be left over at the end of the 2012-2013 fiscal year could total $950,000. The school district could use this money to offset the tax rate by returning it to the taxpayers, as that money must be spent or used to offset the tax rate.