Northern Lehigh School District could lose over $1 million in state funding next year.

Business Manager Jeremy Melber informed the school board on Monday that the district will likely lose $825,000 in basic education funding, and could lose another $365,000 in Accountability Block Grant funding."We are looking at losing a possible $1.2 million in revenue from the state, and our salary and benefit expenses are going to increase $400,000 to $500,000," Melber said. "Those numbers combined is why we are starting 7 to 8 mills behind."Melber told the board it will have to make a decision next month. He said that under Act 1, it cannot exceed the 1.9-percent index, which would equate to about 1.22 mills."The board must decide it they wish to pass a resolution if they won't go above the tax index, or go out to referendum," Melber said. "For us to pass a preliminary budget by February will be very preliminary, and will be a huge guessing game."As a result, Melber suggested the board may want to create incentive plans for the district's high-end teachers to retire and not be replaced. Melber said the high-end teachers account for about $111,000 per position, which could result in a savings of over $1 million with its fund balance and long range plan.Melber said the district is also looking at class size and grade levels."The administration at my office is looking very hard at this," he said. "We don't want to have deep cuts, but at this point, we might not have a choice."However, Melber noted the district is developing several plans, and is confident it won't raise taxes anywhere near 7 to 8 mills to close the budget gap.He said a preliminary budget will likely be prepared by next month.In June, the board approved the 2010-11 budget with a 2.38-percent, or 1.5-mill increase that raised the millage rate from 62.873 to 64.373 mills in Lehigh and Northampton counties.That means a person with a home valued at $100,000, and assessed at $50,000, will pay $3,219 in property taxes to the district next year, $75 more than this year's $3,144 rate.Melber said the $29,308,342 budget was the end result of three major areas that will impact the distinct over the next three to five yearsa: a 20-percent increase in health insurance; a 30-percent increase in electricity rates; and retirement contribution rates.In other business, the board:• Approved, on an 8-0 vote with Director Mathias Green absent, to appoint the law firm of Steckel & Stopp as solicitors for the Northern Lehigh School District for 2011 at a retainer fee of $2,000, which represents an increase of $250 over last year's fee. This is the first retainer increase since 1999.• Rescinded the appointment of Cynthia Fritzinger as Temporary Vacancy Replacement as a Slatington Elementary School fifth grade teacher, replacing current teacher on family medical leave, at the substitute teacher rate days 1-30; day 31 and beyond $42,435 prorated, Step 1 Bachelors on the 2010-11 CBA Salary Schedule, effective Sept. 7, 2010, with a termination date upon physicians release of teacher to return to work, as approved at the Oct. 11, 2010, school board meeting.• Hired Michael Strohl as temporary vacancy replacement, fifth grade Slatington Elementary, replacing Elissa Fry, who was granted a leave of absence, at the substitute teacher rate days 1-30; day 31 and beyond $42,435 prorated, Step 1 Bachelors on the 2010-11 CBA Salary Schedule, effective on or about Nov. 24, 2010, with a termination date upon exhaustion of teacher's 12 week leave on or about Feb. 18, 2011. Strohl's hiring is pending verification of missing documents.• Accepted the retirement resignation of Samuel Unger from his position as second shift Peters Elementary School custodian, effective the end of the work day, Dec. 31, 2010. At that time, he will begin his retirement from the district after 18 years of service.• Accepted the retirement resignation of Steve Remaley from his position as maintenance/lead maintenance employee, effective the end of the work day, Dec. 31, 2011. Contract language states that custodial/maintenance employees who have worked for the district more than 20 years and give notice to the district of retirement 12 1/2 months before retirement date shall receive an additional $500 upon retirement. Mr. Remaley will retire in Dec. 2011, after 33 years of service to the district.• Rescinded the appointment of Richard Roberts IV as the middle school boys basketball coach at a stipend of $2,963.73, which was originally approved at the April 12, 2010 school board meeting.• Rescinded the appointment of Richard Roberts III as a volunteer assistant boys basketball coach, which was originally approved at the April 12, 2010 school board meeting.• Approved Renee Evans and Linda Brown as game workers for the 2010-11 school year. Game workers consist of ticket sellers and takers, game announcers, scoreboard operators, times, field judges, and scorekeepers. The rate of pay is consistent with the rates approved on the 2010-11 Supplementary Personnel Salary Schedule.• Approved Robin Blocker, Margaret Blose, Lor-Beth Guelcher, JoAnne Sipos, Sheila White, Kathy Yelinek and Charles Uhler as unpaid volunteer aides in the Peters and Slatington elementary schools for the 2010-11 school year. White is pending verification of clearances.• Approved substitute teachers Jessica Yenser, Elementary; and Edward Anderson; Donna Bauer; Nika Belcastro Albanese; Shannon Burky; Ann Forrestal; Ines Heuser; John Hughes; Melissa Lawson; Cara Meskill; Roohenn Smith; and Jeanine Villano-George as CLIU Guest teachers for the 2010-11 school year at the 2010-11 substitute teacher rates as approved on the Supplementary Personnel Salary Schedule.• Granted Karen Nicholas permission to attend the 2010 SAS Institute: Bridging Research and Practice conference Dec. 5-8, 2010, at the Hershey Lodge in Hershey. The cost of lodging is $432.90; travel $71; and meals, $25, for a total approximate cost of $528.90, to be funded from the Curriculum and Instruction Budget.• Approved the request of the Slatington Elementary administration to create a Digital Photography Club in the Slatington Elementary School. The club will expose students to basic techniques of digital photography and apply those skills to real life photography challenges. The club will meet on Day 3 from 3-4 p.m. There will be no cost to the district to conduct this club.• Authorized the superintendent to execute an agreement between the district and the CLIU#21 to provide special education services for the 2010-11 school year.• Approved the purchase of Houghton Mifflin Harcourt, Holt McDougal Psychology: Principles in Practice books, including books and resources for students and teachers in grades 9-12 level. The total cost of these materials is $3,001.08, and is from the curriculum and instruction budget.• Approved the changes to the High School Program of Studies book; specifically related to increased graduation requirements, GPA calculations, and Dual Enrollment's effect on GPA.• Approved the changes to the Northern Lehigh School District Emergency Operations Plan as presented.