The consensus on the Northampton Area School District Board of Education is that there will be no increase in school taxes in the 2023-24 general fund budget.

In a straw poll at the April 17 board meeting, school directors, in a nonbinding vote, were 8-0, with one school director absent, in favor of no tax increase.

School Director David Gogel was absent, but it was indicated he also favors avoiding the tax increase. School Director Chuck Frantz phoned in his vote.

NASD Superintendent of Schools Joseph S. Kovalchik sought guidance from the board so NASD Business Administrator Craig Neiman can prepare the proposed 2023-24 budget, which is to be voted on at the next school board meeting, planned for 6:30 p.m. May 8 in the Northampton Area High School auditorium, 1619 Laubach Ave.

The budget must be advertised at least 30 days before a vote on the final budget, which is expected at the June 12 board meeting. School districts, by Pennsylvania law, are required to approve budgets by June 30.

According to the presentation, the 2023-24 millage rate would be 55.71 mills, the same as the 2022-23 millage rate. Based on the average property assessment in the district of $63,000, the tax would be $3,509.73.

The NASD 2023-24 preliminary general fund budget, according to a presentation at the April 17 board meeting, has revenue of $126,303,118, an increase of $5,827,021, or 4.84%, from the NASD 2022-23 budget revenue of $120,476,097.

According to Kovalchik’s presentation, the budget has expenditures of $128,428,529, an increase of $7,952,433, or 6.6%, from the NASD 2022-23 budget expenditures of $120,476,097.

Kovalchik said the deficit in the NASD 2023-24 preliminary general fund budget is $2,125,411. To balance the budget, $2,125,411 would be taken from the district fund balance.

According to the presentation, the ending unassigned fund balance would be $6,892,244, or 5.3%, which is above the 5% minimum established by the school board in Fund Balance Policy 620, adopted Sept. 13, 2010. The policy requires the district to maintain an unassigned general fund balance of no less than 5% and no more than 8%.

The budget figures changed from Kovalchik’s presentation at the March 13 board meeting. The 2023-24 preliminary general fund budget was first presented at the board meeting Jan. 9.

At the April 17 board meeting, Kovalchik updated the district fund balance, based on not having a tax increase, from the previous update at the March 13 meeting. Updates include the assigned fund balance, $6 million; nonspendable fund balance prepaid-inventory, $456,697; Route 329 project or renovation, $1 million; miscellaneous capital projects, $1.5 million; Employee Benefits Trust of Eastern Pennsylvania, nothing; contracts, $700,000; balance budget, $1,425,411; restricted fund balance (Lehigh Elementary School project escrow), $917,149; assumed basic education increase, $400,000; and unassigned fund balance, $6,892,244.

Key differences in the fund balance presentation April 17 compared to the March 13 presentation is that the assigned fund balance has decreased from $6,013,724 to $6 million, contracts decreased from $1.2 million to $700,000, the balance budget category decreased to $1,425,411 from $1,896,575 and the unassigned fund balance decreased to $6,892,244 from $11.5 million.

In a separate straw poll, school directors voted 6-2 to retain ownership of Moore Elementary School, but as a facility for community use, or possible use by an education entity.

Board President James Chuss proposed Moore could be used by Colonial Intermediate Unit 20 or Bethlehem Area Vocational-Technical School, each of which is said to need more classroom and instructional room space.

NASD school board members, also by consensus but not by vote, approved getting appraisals for the district’s Washington building, which houses the instructional technology department, 2389 Main St., Northampton; Franklin Elementary School kindergarten building, 855 Lincoln Ave., Northampton; and district administration building, 2014 Laubach Ave., Northampton.

If the Route 329 project is approved, Moore, Washington, Franklin and the administration building are expected to be closed for district education use.

At its Oct. 10, 2022, meeting, the NASD Board of Education adopted a maximum building cost of $44,707,536 and maximum project cost of $73,406,193, including $3,043,193 in financing.

The school board is seeking approvals from East Allen Township for the Route 329 project, which includes a new elementary school, instructional technology center and administration building.

A state-mandated Act 34 public hearing for the school project was held Dec. 8, 2022, in Northampton Area Middle School cafeteria.

School construction on the East Allen Township facility is projected to be completed by June 2025.