Northampton Area School District Board of Education favors not increasing taxes for the 2024-25 school district budget. That’s the consensus of the board after school directors were polled by NASD school board President Doug Vaughn at the April 8 board meeting.

With that recommendation, NASD Business Administrator Craig Neiman will prepare the proposed final NASD 2024-25 budget with a zero-percent tax increase.

Neiman will present an update on the NASD 2024-25 budget at the next school board meeting, 6:30 p.m. May 13 in the Northampton Area High School auditorium, 1619 Laubach Ave. The budget is expected to be on the agenda.

According to the Pennsylvania Department of Education, the final school district budget must be adopted via board vote by June 30. A proposed version of the budget must be prepared and adopted via board vote no later than May 31, or at least 30 days before adoption.

This work-in-progress budget, defined as the proposed final budget, must be available for public inspection no later than June 10, or 20 days before adoption June 30.

The final vote on the NASD 2024-25 budget is expected to be on the agenda of the 6:30 p.m. June 10 board meeting.

As part of the four-hour April 8 school board meeting, Neiman presented a 24-page update of the NASD 2024-25 preliminary budget he unveiled at the Jan. 8 board meeting.

The NASD 2024-25 budget has expenditures of $132.5 million and revenues of $129.1 million, for a budget deficit of $3.4 million, according to Neiman’s presentation.

Neiman presented five tax options for the 2024-25 budget. Each would plug the 2024-25 budget deficit of $3,405,037. The options are based on the NASD average 2023 homestead assessment of $63,000. The average 2023 homestead tax bill is $3,510, according to Neiman’s presentation.

The five options are as follows.

• 0.5% tax increase: $361,815 revenue generated; 0.28 millage increase; $3,043,221 additional fund balance use; $17.55 average annual tax bill increase

• 0.75% tax increase: $543,628 revenue generated; 0.42 millage increase; $2,861,409 additional fund balance use; $26.37 average annual tax bill increase

• 1% tax increase: $725,895 revenue generated; 0.56 millage increase; $2,679,142 additional fund balance use; $35.21 average annual tax bill increase

• 1.25% tax increase: $908,617 revenue generated; 0.7 millage increase; $2,496,420 additional fund balance use; $44.07 average annual tax bill increase

• 1.5% tax increase: $1,091,796 revenue generated; 0.84 millage increase; $2,313,240 additional fund balance use; $52.95 average annual tax bill increase

Each of the five tax options for the 2024-25 budget assumes Moore Elementary School would close.

Neiman presented three tax options for the 2024-25 budget for Moore Elementary to remain open and be renovated. Each of the options are based the 2024-25 budget deficit of $3,405,037. The options are also based on the NASD average 2023 homestead assessment of $63,000.

The three options for Moore Elementary are as follows.

• 4% tax increase: $2,895,625 revenue generated; 2.23 millage increase; $509,411 additional fund balance use; $140.44 average annual tax bill increase

• 5% tax increase: $3,618,109 revenue generated; 2.79 millage increase; $213,072 added to fund balance; $175.48 average annual tax bill increase

• 6.6% tax increase: $4,773,023 revenue generated; 3.67 millage increase; $1,367,987 added to fund balance; $231.50 average annual tax bill increase

According to Neiman’s presentation, an additional tax increase would be required in the 2025-26 district budget to pay for the full cost of renovation and staffing to maintain Moore as a fifth elementary school. Five or six mills would be required in total.

Other district operating costs need to be considered and may require additional millage, Neiman’s presentation stated.

The NASD 2024-25 budget of $132.5 million is an increase in expenditures of 3.2%, or $4.1 million, from the NASD 2023-24 budget of $128.4 million.

Neiman’s presentation cited expenditures in salaries in the NASD 2024-25 budget of $51.6 million, an increase of 4.5%, or $2.2 million, from the NASD 2023-24 budget of salaries of $49.4 million.

Neiman’s presentation also cited expenditures in benefits in the NASD 2024-25 budget of $35.1 million, an increase of 5.4%, or $1.8 million, from the NASD 2023-24 budget of benefits of $33.3 million.

New NASD staff positions in the 2024-25 budget include two licensed social workers, which were previously grant funded, one district technology position, two special education teachers and one instructional aide.

The NASD 2024-25 budget of $129.1 million in revenue is an increase of 2.2%, or $2.8 million, from the NASD 2023-24 budget of $126.3 million in revenue.

In the NASD 2024-25 budget, local revenue is $87.6 million, an increase of 4.4%, or $3.7 million, from the 2023-24 budget of local revenue of $83.9 million.

In the NASD 2024-25 budget, state revenue is $40.1 million, an increase of 6.4%, or $2.4 million, from the 2023-24 budget of state revenue of $37.7 million.

In the NASD 2024-25 budget, federal revenue is $1.4 million, a decrease of 70.2%, or $3.3 million, from the 2023-24 budget of federal revenue of $4.7 million.

Neiman said the drop in federal funding is because of the ending of federal pandemic funds, known as Elementary and Secondary School Emergency Relief, which was provided through the American Rescue Plan Act, signed into law March 11, 2021.