Northern Lehigh School District continues to work to reduce its anticipated 2020-2021 budget shortfall.

Sherri Molitoris, co-director of business affairs/human resources, reviewed the recommendations from May when the board approved a 3.5 percent tax increase to generate $455,000 in revenue:

• The education budget amount will be the same as it received this year. Basic education funding will be $7,088,639; and special education funding will be $1,297,891.

• Potential staff reductions. “We have a secondary Social Studies position that we felt we could do without based on enrollment and how the course loads with classes at the high school are loading, as is the same situation with the (secondary) music position at the secondary level as well,” Molitoris said.

“The way they’re loading at the high school level allowed us to reduce our potential staff due to retirements and attrition; we are not furloughing anybody, it’s due to attrition and staff retirements so we could reduce our expenditure budget on the side by staff by $246,656.”

• Bond refinancing would take $2 million out of the 2020-2021 payment, and $2 million out in 2021-2022.

• Pennsylvania Commission on Crime and Delinquency grant, $227,527 and CARES grant, $329,372’

Superintendent Matthew J. Link said the district’s CARES/PCCD grants are to purchase items or services directly related to COVID-19.

“We cannot yet definitely say which items we’re going to fully recommend to the board,” Link said. “We know that we’re going to move to dedicate some of those moneys to items like these; we just don’t know exactly which items yet or if there are other ones that we still may want to consider.”

• The district would stand to lose subsidy reimbursement of $300,000 if it does not renegotiate the Brandywine Transportation contract. The district would have paid $500,663. If renegotiated, the district would only pay $279,000 to satisfy that agreement. Additionally, it would receive that $300,000 in subsidy next year.

As of last month, the district was faced with a $2.94 million shortfall in its fund balance.

Through a combination of the CARES expenditure increases ($324,576); and PCCD expenditure increases ($227,527); there would be a total shortfall for the June presentation in the amount of $3,494,304.

As for revenue, she said that with basic and special education subsidy changes ($12,981); CARES ($324,576); PCCD ($192,527); transportation subsidy ($300,000); staff reduction ($246,656); and bond refinancing ($2 million), the district’s updated budget shortfall would be $417,564.

The board will hold a special meeting at 7 p.m. Monday to adopt next year’s spending plan.