School board holds line on taxes
No new taxes.
That’s the takeaway after a 7-2 vote by the Northampton Area School District Board of Education to approve the proposed 2020-21 budget in a May 4 Google Meets virtual meeting.
School directors, mindful of the economic impact of the coronavirus pandemic on business closings, job losses and possible reductions in earned income tax and other revenue on district finances, backed a zero-percent property tax increase.
“With the current budget, there wouldn’t be any increase to a person’s current real estate tax bill,” NASD Superintendent of Schools Joseph S. Kovalchik said.
Based on the average NASD residential property assessment of $54,600, which comprises 70 percent of the district, the tax bill would be $3,263.48 annually based on the 2019-20 millage of 54.80 mills, which has not increased.
The 7-2 vote was along the lines of the April 20 school board meeting 7-2 straw vote when directors backed a no-new-taxes budget and follows the April 6 school board meeting when three directors, Roy Maranki, board President David Gogel and board Vice President Chuck Frantz, led the charge to oppose a tax hike. Maranki also opposed the preliminary budget when it was first approved 8-1 at the Jan. 13 meeting.
“This country’s in bad shape,” Frantz said prior to the vote May 4. “It’s not getting any better. We cannot raise any taxes.”
Maranki agreed, saying, “I am not changing my vote. I’m sticking with zero. There’s one in six Americans out of work.”
Maranki, Frantz and Gogel were joined by school Directors Dr. Michael Baird, John Becker, Robert Mentzell and Ross Makary in voting for a zero-percent tax increase.
Abstaining were school directors Chuck Longacre and James Chuss, who opposed a zero-percent tax hike in the straw vote.
To get to the zero-percent tax hike, Kovalchik and NASD Business Administrator Matthew Sawarynski cut $1.5 million from the 2020-21 general fund budget.
The cuts include $500,000 from the district technology budget, $500,000 from the personnel budget by not replacing positions and expenditure reductions, including staff development, textbooks and field trips.
The school board approval makes the 2020-21 proposed general fund budget of $113,155,699, athletic fund of $258,743 and food service budget of $2,504,747 available for public inspection.
The 2019-20 general fund budget was $110,532,215, the athletic fund was $251,935, and food service fund was $2,414.163.
The May 4 vote gives NASD the required 30 days to advertise the budget prior to a vote on the final budget, possibly at the June 8 or June 22 board meetings. School districts must approve annual budgets by June 30.
The board is considering holding an additional meeting, either June 15 or June 17, to vote on the final budget.
“Let’s see where the next week or two takes us,” said Kovalchik, noting the administration would prepare a business information sheet for the 6:30 p.m. May 18 school board meeting, in case an additional budget meeting needs to be advertised.
Baird expressed concern about a delay in a vote on the budget, which affects the issuance of tax bills.
“We have to get them out by July 1. Or we push it back to September,” he said. “We may run out of money, but, of course, the state doesn’t care about that.”
Responding to the economic impact of the coronavirus, school directors revisited the NASD 2020-21 preliminary budget, which they approved Jan. 13, with the general fund set at $114,717,283, the NASD food service fund at $2,504,747 and NASD athletic fund at $258,743.
Approval of the preliminary budget originally called for a 3.8-percent tax hike and use of $3.2 million from the school district fund balance for 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. PDE approved the NASD request for exceptions, which would have allowed a tax increase of more than the district index.
The tax impact of the preliminary budget would have required 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 would have been $115 annually, based on the district average residential assessment of $54,600.
After the May 4 board meeting, Kovalchik said the 2020-21 budget could be further affected by the coronavirus pandemic.
“It’s really going to depend on what type of educational program we have in the fall,” Kovalchik said.
When asked whether or not NASD teachers and employees face furloughs, Kovalchik said, “Everything is on the table with regard to discussion of the budget, whether it’s equipment, resources or personnel.”
NASD, and most area school districts, are likely weighing three general options for the start of the 2020-21 school year, according to Kovalchik.
The options in the fall are:
• Classroom in-person instruction with possible Centers for Disease Control and Prevention guidelines adhered to;
• A hybrid instruction with a percentage of students in class and a percentage of students staying at home for online learning; or
• All online learning for students.
Kovalchik was asked if the format for education in the fall could increase instructional costs for NASD.
“Depending on what educational program we have in place, that’s going to steer the resources we need,” he said.
In addition to possible increased costs for instruction, there could be increases in costs for cleaning of classrooms and school buildings, more cleaning supplies, more custodians, multiple transportation runs for staggered classes, more cleaning of buses, social distancing in classrooms possibly requiring more classrooms, eating lunch in the classroom rather than the cafeteria and face masks and thermometers.
“Those things can add up,” Kovalchik said.
Kovalchik, who convenes regularly, albeit virtually, with other Lehigh Valley school district superintendents, said, “When the final requirements are given to us by the state, we will have option one, two or three ready to go, and we will implement that option.”
Starting May 6, Kovalchik said, “We’re going to start allowing staff to come in and collect personal items and gather student items and put them in a safe location.”
Fewer than 10 NASD personnel will be allowed in a building at one time. The temperature of each person will be taken. The 6-foot physical distancing requirements, as well as CDC guidelines, will be followed.
Items will be gathered first at Col. John Siegfried Elementary School, Northampton, because it is scheduled for a heating, ventilation and air conditioning improvements project, expected to begin in late May or early June.
It will take a minimum of 10 days for staff to collect items and another week for parents to pick up items.
School directors voted 9-0 at the May 4 meeting to approve a $2,419,000 mechanical construction contract to Myco Mechanical Inc. for Siegfried.
The vote included the school board’s determination that the Siegfried project “constitutes critical school construction consistent with the Department of Education (PDE) guidance issued on or about March 27, in response to the governor’s order issued March 6, proclaiming a statewide disaster emergency caused by COVID-19.
“The PDE guidance provides that critical school construction may continue, provided the school district and contractor(s) employ social distancing and other mitigation measures as may be established by the Pennsylvania Department of Health and Centers for Disease Control and Prevention.
“In accordance with amendments issued April 20, of previous business closure orders of the governor and Pennsylvania secretary of health, businesses engaged in construction that have or will be permitted to resume work, shall be subject to the safety guidance issued by the commonwealth April 23 that has an effective date of May 1.
“Until further orders or guidance are issued that amend or lift the requirements set forth therein, Myco must adhere to the state-imposed requirements as set forth in the safety guidance in order to perform construction at the Siegfried project. Myco shall obtain a copy of the safety guidance, which is also available from the school district upon request.
“Myco shall cooperate with the school district or agent of the school district to prepare a contractor safety plan that incorporates and complies with the applicable orders and guidance issued by the commonwealth.”
Longacre noted May 4-8 is Teacher Appreciation Week.
“So, if you see a teacher, give them a hug - from 6 feet away,” Longacre said.
“I’d like to thank the administration and the board for keeping this going through the pandemic,” Gogel said. “A lot of things are going to change. Get ready for some big-time changes.”