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LEHIGH VALLEY WEATHER

Board majority backs no tax hike

A majority of the Northampton Area School District Board of Education is on the record as wanting no new taxes to help finance the 2020-21 budget.

School directors met virtually April 20 and voted 7-2 in a straw vote to back a zero-percent tax increase for the 2020-21 fiscal year.

In the nonbinding vote, those supporting a zero-percent tax increase were school board President David Gogel, Vice President Chuck Frantz and Directors Roy Maranki, Robert Mentzell, Ross Makary, John Becker and Dr. Michael Baird.

Voting for a 2-percent increase was Director James Chuss.

Voting for a 3.2-percent increase was Director Chuck Longacre.

The straw vote was taken to give NASD Business Administrator Matthew Sawarynski guidance in preparing the NASD 2020-21 proposed budget, which the school board must vote on at its next meeting, set for 6:30 p.m. May 4, again by remote conferencing.

The May 4 vote gives NASD the required 30 days to advertise the budget before a final budget vote, expected at the June 8 or June 22 board meeting. School districts must approve the annual budgets by June 30.

School directors voted from their homes, communicating electronically with Kovalchik, Sawarynski and NASD Secretary to the Superintendent Denise A. Vilkauskas, who were all coordinating the meeting from the district administration building, 2014 Laubach Ave., Northampton.

In light of business closings and job layoffs in the wake of the coronavirus pandemic, school directors are revisiting the NASD 2020-21 preliminary budget, which they originally approved Jan. 13, with the general fund set at $114,717,283. Also approved was the NASD food service fund of $2,504,747 and NASD athletic fund of $258,743 for the 2020-21 school year.

Approval of the budget called for a 3.8-percent tax hike and use of $3.2 million from the school district fund balance to fund the expenditures.

The Pennsylvania Department of Education set the Act 1 Index at 3.2 percent for NASD for 2020-21, which is the maximum allowed tax increase for the district. The PDE approved the NASD request for exceptions, which would allow a tax increase of more than the district index.

The tax impact of the preliminary budget requires 56.99 mills, an increase of 2.10 mills, or 3.8 percent, from the 2019-20 millage of 54.80 mills.

The average increase per household is $115, based on the district average residential assessment of $54,600, which accounts for 50 percent of NASD taxpayers.

To get to the potential zero-percent tax increase, Kovalchik and Sawarynski cut $1.5 million from the budget, which will be factored into the proposed budget when it is presented at the May 4 board meeting.

“At this time, we are not planning on furloughing staff,” NASD Superintendent of Schools Joseph S. Kovalchik said. “If the revenues, expenditures and enrollment change in the coming months, we may have to consider it at that time.”

Before the straw vote, school directors voiced their concerns about the impact of the coronavirus pandemic on district residents’ finances, as well as the district’s own finances.

“What we’re facing now is an enormous number of forces, both positive and negative,” Longacre said. “We have 22 million unemployed nationwide. But the CARES (Coronavirus Aid, Relief and Economic Security) Act has passed $2.2 trillion. And they’re close to passing another $1 trillion. The state is kicking in money. The federal government is providing money.

“I think we should pass a budget that is less than what we passed in January. I think we should be at or below the Act 1 Index. We need to pass a budget that will allow us to deal with some of the uncertainties.”

At that point, Longacre suggested a 3.2-percent budget increase.

“Zero percent is the way to go,” Maranki said. “We just have to tighten our belts.”

Chuss was not certain if they should go all the way to zero percent and asked questions related to possible changes to future school days as a result of the pandemic.

“If we do have class, what’s our class going to look like?” Chuss asked. “Are we going to have to maintain social distance? First grade may have to be split in half. Are we going to have more home-based learning? Are we going to have to put money in that?”

Sawarynski polled the board for the straw vote.

“There’s no way I can support a tax increase. I’m supporting zero percent. My vote is zero,” Frantz said.

“I’m going to stay with 3.2 percent,” Longacre said. “For every percentage point, the difference is roughly $30 per year - $29.95. If they choose to divide it into three payments, it’s $10.”

“At this time, given the circumstances of the economy, I will be voting for zero percent,” Mentzell said.

“I guess I have more faith in the government,” Chuss said. “I see it’s better to be unemployed than employed. I vote 2 percent.”

“I am trying to lead the way as president,” Gogel said. “We have to be as fiscally conservative as possible. I’m going to vote for zero percent. We can adjust later.”

Kovalchik noted the board can continue discussing the tax rate for the next several weeks, and if necessary, they can adjust the rate as needed.