Second of three parts

The 2024-25 Northampton Area School District preliminary budget presentation includes much more than budget facts and figures.

The preliminary budget presentation was made at the Jan. 8 NASD Board of Education meeting by NASD Superintendent of Schools Joseph S. Kovalchik and NASD Business Administrator Craig Neiman. The presentation offers some clues to new directions in NASD, which has a population of approximately 38,500 in Northampton, Bath and Chapman boroughs and Lehigh, Allen, East Allen and Moore townships.

A copy of the presentation is on the home page of the NASD website, nasdschools.org.

The presentation outlines, in addition to existing and proposed warehouses, a list of in-progress or proposed residential housing. The promises and challenges of industrial development, such as warehouses, were outlined in an article that appeared in the Jan. 11 edition of Northampton Press.

Kovalchik has estimated 1,800 houses are underway or approved in the 97.3-square-mile district. While housing does not generate the volume of tax revenue of the warehouses, it does create taxable property.

“The houses bring in a nice amount of revenue. It’s not as much as industrial,” Neiman said.

New housing would potentially add to the number of students in NASD. According to the presentation, recent housing developments include the following existing and/or planned residential units:

• Toll Brothers, East Allen Township: 192, with 246 on the books (planned and/or approved)

• Kay Homes: Fields at Willowbrook, Northampton Borough: 50, with 56 on the books

• Towpath Estates, Allen Township: 55, with 93 on the books

• Sunny Slope Crossings, East Allen Township: 0, with 81 on the books in the permitting process

• Northampton Crossings, Northampton Borough: 16, with 40 on the books

• Bathview Phase III, Bath Borough, 36 new units on the books

Residential units under consideration include:

• Jaindl Seminary, Lehigh Township, Allen Township: 475-500 units planned

• Willowbrook Farm, Allen Township, 508 units planned

• Northwood Estates, Lehigh Township, 198 units planned

• North Hills of Allen, Allen Township: 50 units planned

• Stone Ridge extension, Allen Township: 80 units planned

• High Meadow Phase 2, Allen Township: 37 units planned

The presentation includes information about NASD tax levels. According to NASD officials, the district has the second-lowest millage rate, at 55.71 mills, in Northampton County. The school board has voted to not increase taxes above the Act 1 Index of 6.6%.

The average NASD tax increase in the last four years was 0.38%. In the last 13 years, the average NASD tax increase was 1.66%.

According to the presentation, revenue highlights include:

• The Act 1 Index is 6.6%.

• Assessment growth is somewhat offset by reduced interim billings.

• Strong investment earnings are hedged to continue in 2024-25.

• Act 511 (EIT, real estate transfer, per capita) continues to perform above trend.

• Basic and special education funding assumes an increase above 2023-24, which includes the July 2023 increase plus $500,000.

• Other subsidies, such as transportation, Social Security and pension, are funded at 2023-24 rates.

• State gambling funding remains flat to 2023-24 (Homestead-Farmstead deduction).

• Federal ESSER pandemic funds end.

• Federal funding is flat for Title programs.

Expenditure highlights, according to the presentation, include:

• Salary costs reflect recently settled CBAs and seven new positions.

• Medical plan costs are $500,000 more, mainly because of prescription costs.

• Pension costs based on December 2023 PSERS board certification are $700,000 more.

• The phaseout of ESSER-funded expenditures expects a $3.1 million reduction.

• The contracted transportation agreement ends June 30.

• Charter school tuition costs are $700,000 more.

• Bethlehem Area Vocational-Technical School enrollment and formula increases are $300,000 more.

• Northampton Cyber Academy enrollment increase is $600,000 more.

• Debt service is $400,000 more.

The budget presentation points out approximately 97% of NASD expenditures are non-discretionary expenditures.

According to a pie chart diagram, expenditures by category include: salary and benefits, 65%; debt service, 9%; transportation, 6%; IU-20 services, 6%; BAVTS, Northampton Community College, other, 4%; charter school tuition, 4%; utilities, 1%; insurance and legal, 2%; and all other, 3%.

The “all other” expenditures include:

• Technology equipment and software

• Curriculum materials, software and instructional supplies

• Utilities (electricity, natural gas, fuel oil, bottled gas, telephone, water and sewer)

• Gasoline and diesel fuel

• Maintenance, custodial and vehicle supplies

• Charter school tuition

• BAVTS and NCC tuition

• Insurance, legal, audit and tax collection

• Debt service payments

• Contracted transportation

• Repair and maintenance costs

The NASD preliminary budget for the 2024-25 school year has expenditures of $132.5 million, revenue of $129.1 million and a deficit of $3.4 million.

To balance the budget, a 2024-25 initial tax option includes an increase of 0.28 mills, or 0.5%, to generate $361,815 in revenue and use $3,075,462 from the district fund balance.

The average annual tax bill increase for district property owners would be $17.55, according to the presentation at the Jan. 8 NASD school board meeting.

The 2024-25 budget is an increase of $4.1 million, or 3.2%, in expenditures from the 2023-24 budget of $128.4 million.

The NASD school board will next meet 6:30 p.m. Feb. 12 in the Northampton Area High School auditorium, 1619 Laubach Ave., Northampton.

Next week: NASD 2024-25 budget, part three