Whether Northern Lehigh School District residents will see a 3.5% property tax increase remains undecided.

As part of ongoing 2025–2026 budget preparations, district administrators presented several proposals to the school board recently.

They sought guidance on options:

• Using the fund balance for one-time purchases, debt payments, and increases in Public School Employees’ Retirement System and health care costs

• Implementing a 3.5% tax increase to help close the budget gap and generate revenue for future capital projects.

This included $500,000 toward a proposed bond payment for the common campus, a move that was later discarded in the meeting.

• Adding a special education teacher at Slatington Elementary to open an ES classroom and reintegrate currently outplaced students.

• Hiring new paraeducators at Peters and Slatington Elementary Schools.

• Extending the high school flooring replacement project over three years, with $270,000 budgeted for 2025–2026 as a one-time expense.

• Discontinuing the Open Horizons Summer Camp and reallocating those funds to hire two additional paraeducators — one for each elementary school. The board expressed support for all items except the 3.5% tax increase that includes the $500,000 bond payment for the common campus.

While a tax increase could still happen, the board opposed tying it to the bond proposal.

Staffing and Facility Recommendations

• Peters Elementary, a second-grade teacher would be reassigned to third grade due to enrollment; a new paraeducator, funded through the general fund, would support at-risk first-grade students in reading and math.

• Slatington Elementary: a new special education teacher would be hired to reintegrate 2–3 previously outplaced students, eliminating the need to outplace two incoming third graders; a paraeducator would also be added, funded by savings from reduced one-on-one aide needs.

• Middle and High School: A vacant high school business/technology position will be repurposed as a shared music position for the middle and high schools. The district is considering relocating sixth grade to a newly created middle school wing.

Budget overview

District Business Manager Sherri Molitoris reported current expenses at $42,993,231, with revenues (excluding fund balance) totaling $40,381,929 — leaving a shortfall of $2,611,302.

The district proposes using $1,082,000 from the fund balance for one-time costs like furniture, a truck, flooring, a water softener, and retiree/health care expenses.

This would reduce the deficit to $1,529,302. If the remaining shortfall is also covered by the fund balance, the estimated ending fund balance for 2025–2026 would be $16,157,572.

Without using the balance for recurring costs, it would remain at $17,686,874.

A 3.5% tax increase would raise taxes by $134 annually for a median-assessed home of $151,850 in Lehigh County and $123 annually for a median-assessed home of $46,200 in Northampton County.

Background

In December, the board passed an Act 1 resolution capping any tax increase at 5.5%. Last month, the board narrowly approved the proposed $42.99 million general fund budget in a 5-4 vote.

The decision followed the defeat of a motion for a 3% increase, which was rejected 7-2, despite audience support.

With the 3.5% tax increase included, local revenues are projected at $41,050,939, reducing the budget gap to $860,292.

This scenario also assumes use of $1,082,000 from the fund balance for one-time expenses, retirement. and health care increases, and $200,000 toward bond payments.

The resulting fund balance would be $16,826,582 if the remaining deficit is also covered by reserves.

The final budget vote is scheduled for June 9.