The Northampton Area School District Board of Education voted 8-0 at its May 13 meeting to adopt the 2024-25 proposed general fund budget of $132,542,965. The vote included authorization of the administration to advertise and make the proposed budget available for public inspection.

School boards in Pennsylvania are required by law to approve annual district budgets by June 30. Budgets must be advertised for 20 days before the final budget vote. A final vote on the budget is expected at the next board meeting, scheduled for 6:30 p.m. June 10 in the Northampton Area High School auditorium.

At the May 13 meeting, school directors did not approve two attempts to raise taxes, but rather let stand their backing of a zero-percent tax increase, as expressed in a poll taken by board President Doug Vaughn at the April 8 meeting.

Director Kim Bretzik made a motion, seconded by Director Josh Harris, for a 0.5% tax increase. The motion did not receive the support needed to pass.

Director Dr. Michael Baird then made a motion, seconded by Director Ross Makary, for a 1% tax increase, which resulted in a 4-4 tie in a roll-call vote. Voting for the 1% tax hike were Baird, Makary, Vaughn and Director John Becker. Voting against the 1% tax hike were Bretzik, Harris, Director Brian McCulloch and Vice President Kristin Soldridge.

Atty. John E. Freund III, NASD solicitor from King, Spry, Herman, Freund and Faul, told school directors, “Even a 4-4 vote passes for the purpose of posting the budget.”

It was noted the district is not locked in on a particular tax rate. Vaughn reported they will take time and make a decision on the tax rate in June.

According to Neiman’s budget presentation, a 0.5% tax increase of 0.28 mill would result in an average annual tax bill increase of $17.55. A 1% tax increase of 0.56 mill would result in an average annual tax bill increase of $35.21.

The tax bill increases are based on the average 2024 assessment of $63,000, as stated in the presentation. Neiman presented nine examples of tax rates, millage increases and tax bill increases.

Neiman said the 2024 Homestead and Farmstead Tax Relief from the 2006 Taxpayer Relief Act, which uses gaming revenue to reduce property taxes for homeowners, is providing $2,222,915 to NASD, an increase of $372,964 from 2023.

The revenue is expected to lower eligible 2024 property tax bills by $171.85. There are 12,871 eligible homesteads and 74 eligible farmsteads in NASD.

The 2024-25 budget has revenues of $129.2 million and expenditures of $132.5 million for a deficit of approximately $3.4 million. To plug the deficit, $3.4 million could be taken from the district fund balance.

Neiman presented three options to balance the budget based on the school board-directed zero-percent tax increase.

Option 1 includes leasing technology devices, for a savings of $600,000. Option 1 would use $2,266,937 from the fund balance.

Option 2 would include leasing technology devices and eliminating a new technology position, the latter for a savings of $80,000. Option 2 would use $2,186,937 from the fund balance.

Option 3 would include leasing technology devices, eliminating a new technology position and cutting district department and building budgets by 10%, the latter for a savings of $600,000. Option 3 would use $1,586,937 from the fund balance.

Neiman said potential building and department cuts to achieve a 10% reduction could include eliminating Northampton Area Middle School athletics; reducing library content at the schools; reducing instructional, art and music supplies; and reducing schoolwide positive behavioral support programs and professional development opportunities.