COVID-19 isn’t the only thing causing a surge in Northampton Area School District.

An increase in expenditures and a decline in revenues are causing a surge in the NASD 2021-22 preliminary budget.

The district’s 2021-22 preliminary budget has expenditures of $114,852,606 and revenues of $112,245,223 for a deficit of $2,607,383.

That’s an increase of $1,201,125, or 1.06 percent, from the 2020-21 NASD budget of $113,651,481.

“The budget that Joe and I have submitted, we’re doing a pretty good job of cost control. It’s only going up 1 percent,” said NASD Business Administrator Matthew Sawarynski when he and NASD Superintendent of Schools Joseph S. Kovalchik unveiled the 2021-22 preliminary general fund budget at the Jan. 11 board of education meeting.

Some district costs apparently can’t be controlled.

Among the drivers in the preliminary general fund budget deficit are increased costs for cyber/charter schools and special education, according to the NASD administration.

Also cited is a decline in nearly $2 million in state revenue, a $500,000 decline in federal revenue and a nearly $500,000 decline in other revenue for the 2021-22 budget.

Consideration of a vote to accept the 2021-22 preliminary budget is on the agenda for the 6:30 p.m. Jan. 25 board of education meeting, to be held in the cafeteria of Northampton Area Middle School, 1617 Laubach Ave., Northampton. The meeting is open to the public with COVID-19 protocol observed.

“This is a preliminary budget with a lot of changes to be made over the next few months,” board of education President David Gogel said at the Jan. 11 meeting.

Among the projected budget category hikes are:

• PSERS and Social Security costs are expected to increase $600,000.

• Intermediate Unit 20, Bethlehem Area Vocational-Technical School and Northampton Community College budget share costs for NASD are to increase $168,000.

• Contracted transportation is to increase $150,000 if there’s a return to transporting students five days per week.

• NASD Cyber Academy costs are to increase $300,000.

• Cyber/charter school costs are expected to increase $150,000.

• Cyber/charter school costs increased from $2,680,834 in 2014-15 to $4,554,000 in 2021-22, according to the NASD administration.

“It just about doubled from approximately where we were six years ago,” Kovalchik said.

The amount does not include transportation of cyber/school students. School districts are required to provide buses for students who attend charter schools located 10 miles or less from a district’s border.

At the Jan. 11 board meeting, school Director Chuck Longacre read portions of a newspaper article about charter school costs in Pennsylvania and the alleged lack of charter school budgets oversight.

Special education costs increased from $12,229,906 in 2014-15 to $18,879,594 in 2021-22, according to the NASD administration.

“It was a 54-percent increase in approximately seven years,” Kovalchik said.

The commonwealth subsidy for special education stayed at 18 percent for each school year, 2014-15 through 2021-22.

“The state continues at 18 percent,” Kovalchik said. “That number there is astounding.”

Kovalchik added, “The concern is the state reimbursement for our special education students, which is pretty pitiful.”

Revenue declines cited for the preliminary general fund budget deficit include:

• State revenue declined $1,868,516 to $31,780,494 in the 2021-22 budget from $33,649,010 in the 2020-21 budget.

• Federal revenue declined $525,782 to $1,146,000 in the 2021-22 budget from $1,671,782 in the 2020-21 budget.

• Other revenue declined $481,230 to $2,615,000 in the 2021-22 budget from $3,096,230 in the 2020-21 budget.

Earnings on investments declined $500,000.

The commonwealth transportation subsidy is decreasing $400,000.

There has been a loss in revenue for the district food service budget because of the suspension in in-person learning and then the reduction of in-person learning in the hybrid education model.

“Since I’ve been here, we’ve not had to transfer money into the food service fund. December was the first month we broke even,” Sawarynski said.

Two areas mentioned by administration officials for possible cuts include the budget contingency fund of $600,000 and the Northampton Area Public Library contribution of $270,000.

“We’re not suggesting you don’t fund the public library,” Kovalchik said during the 50-minute budget presentation at the Jan. 11 school board meeting. “I think we all agree it’s a good thing, but it’s an option for you to consider.”