Faced with a $1 million shortfall, Northern Lehigh School District could raise taxes by 2.8 percent in the 2014-15 school year.

Sherri Molitoris, co-director of business affairs/human resources, informed the school board on Monday that the shortfall already has the proposed increase built in.Molitoris said the district is set to see about a $600,000 increase in the Public School Employees Retirement System.However, Molitoris noted that next year's spending plan "is still a working document.""We're probably going to use the fund balance to offset our PSERS increase," Molitoris said. "We should have firmer numbers next month."Superintendent Michael Michaels said "our budget is very trying, very difficult."Michaels added that the primary objective is for students to receive a quality education.If the board were to approve next year's spending plan with a 2.8 percent increase, the millage rate for residents who live in Lehigh County would increase from 20.17 to 20.76 mills, and from 57.31 to 57.94 mills for residents who live in Northampton County.In January, the board approved the Act 1 Tax Levy Resolution, which states that the district may raise taxes up to the 2.8 percent index in the 2014-15 school year.Molitoris said the board will likely approve the 2014-15 preliminary budget in May.In June, the board approved the 2013-14 budget with a 2.3 percent increase in the property tax rate.That budget, in the amount of $28,509,357, represented a $402,575 increase over the 2012-13 spending plan, and called for a 20.17 millage rate in Lehigh County, and a 57.31 millage rate in Northampton County.Residents who live in Lehigh County had to pay $2.01 for every $100 of assessed value, and those who live in Northampton County, $5.73 for every $100 of assessed value. That was because Lehigh County was assessed at 100 percent, while Northampton County was assessed at 50 percent.The district took $347,000 out of its fund balance that had been set aside for the PSERS increase to help balance that budget.Also as part of that budget, the board approved the lease of desktop computers for the high school, and desktop and laptop computers for the administrative staff from California First Leasing Corporation, Irvine, Calif., for $50,000 per year, with a lease term of 36 months and a $1 buyout option at the end of the lease agreement.In addition, the board approved to commit and/or assign portions of the June 30, 2013, fund balance for the PSERS increase, health insurance premiums, technology, replacement equipment, and long-range maintenance (actual amounts to be determined after completion of the 2012-13 end-of-year audit).Also on Monday, Rhonda Frantz, co-director of Business Affairs/Employee Payroll & Benefits, announced that per Gov. Corbett's budget proposal, the district's Basic Education funding will remain flat funded.Frantz noted that the district could see an additional $271,000 through a Ready to Learn block grant, on top of the $128,000 in Accountability Block Grant funding it received last year.Molitoris said the Ready to Learn block grant is based on pension reform."My concern is if he (Corbett) doesn't have money for the Ready to Learn, does that mean the Accountability Block Grant would go away because it's not a separate line item in his proposed budget."In an unrelated matter, Molitoris announced that the district is owed an additional $352,000 in PlanCON reimbursement. The district could receive that reimbursement within the next three years, she said.In other business, the board:- Approved, on a 5-2 vote, with one abstention, a resolution regarding the 2014-15 Carbon Lehigh Intermediate Unit Operational and Program Services budget. Directors Mathias Green and Robert Keegan Jr. were opposed. Director Robin Distler abstained. Director Natalie Green was absent. Total expenditures equal $2,938,736, an increase of $135,883, or 4.8 percent, over the 2013-14 adjusted budget. The district's share is proposed to be $19,966, an increase of $19 from the 2013-14 budget.- Approved a resolution regarding the Lehigh Career & Technical Institute's 2014-15 general fund budget, and Academic Center expenditures for the 2014-15 school year. The general fund budget total is $24,298,100, an increase of $699,200, or 2.96 percent. The district's portion of the general fund budget is $906,037, an increase of $7,647. The expenditures for the Academic Center budget for the period of July 1, 2014, through June 30, 2015, total $1,454,880, an increase of $93,371, or 6.86 percent. The district's portion is $22,076, a decrease of $9,743.- Approved the renewal of the district's cellular phone service agreement with Verizon Wireless for two Verizon phone lines to be used by the district's maintenance department, and one line each for the superintendent and athletic director, at a total cost of $239 per month. This is a month-to-month agreement, and there are no cancellation fees if the agreement is terminated early.- Approved entering into a three-year service agreement with PenTeleData for TI connectivity between Slatington Elementary School and Peters Elementary School, in the amount of $250 per month. This telecommunications line is for telephone connectivity only.- Approved a three-year contract renewal for local and long-distance telephone service with Level 3 Communications, at a monthly recurring cost of $1,050 per month.