Northern Lehigh School District has proposed a 4.8% tax increase for the 2026-27 school year, though directors said the final hike approved in June is unlikely to be that high.

On a 7-2 vote Monday, the school board adopted the proposed final budget totaling $44,218,800. Directors Angela Williams and Crystal Bilby voted no.

If approved as proposed, the 4.8% increase would raise the millage rate to 26.7255 in Lehigh County and 85.7432 in Northampton County. The board approved the millage rates 8-1, with Bilby opposed.

Board President Mathias Green said the rates differ because the two counties conducted property assessments at different times. Business Manager Sherri Molitoris added Lehigh County is assessed at 100%, while Northampton County is assessed at 50%.

Budget breakdown

Molitoris said the district’s main cost drivers include salaries and benefits, health care and Public School Employees’ Retirement System contribution, specialized education costs through the Carbon Lehigh Intermediate Unit, charter and cyber charter tuition, maintenance and utility increases, and outplacements.

Projected revenue assumptions include a 94.75% tax collection rate. Molitoris noted the board approved a resolution in December stating it would not raise taxes above the district’s adjusted index of 4.8%.

Federal revenue is budgeted at 2025-26 levels. State revenue is budgeted with slight increases, including $115,000 in additional basic education funding, $40,000 more in special education funding, $372,616 through the Ready to Learn Block Grant, $25,992 in adequacy funding and tax equity funding.

Superintendent Dr. Matthew J. Link outlined long-term projects planned using the fund balance.

For 2026-27, projects include a high school water softener and filtration system ($75,000), Slatington Elementary furniture replacement ($55,000), high school furniture replacement ($45,000), and a K-6 math curriculum purchase ($383,600).

Projects listed for 2027-28 include Peters Elementary furniture replacement ($45,000), high school furniture replacement ($55,000), security camera upgrades under review, and a 7-8 math curriculum purchase ($75,000). A Peters furniture replacement project ($55,000) is also listed for 2028-29.

Molitoris said one-time expenses in the 2026-27 budget total $766,150, including the water softener project, furniture replacements, bond payments ($200,000), the math program purchase ($383,597) and middle school CKLA curriculum ($7,553). The district also set aside $493,000 for anticipated PSERS ($81,000) and health care ($412,000) increases.

Link said administrators are recommending the district use fund balance for one-time purchases, debt service payments, and anticipated PSERS and health care increases. He also recommended approving the 4.8% preliminary tax increase while using fund balance to close the budget gap and generate revenue for future capital improvements.

Link also recommended adding one business teacher at the high school.

Public concerns

Resident Fred Phillips urged taxpayers to contact state lawmakers and press them to address school funding issues.

He noted rising health care costs and questioned whether the district could collaborate more with neighboring school systems to reduce expenses.

“Maybe all of you getting onto some type of health care system that maybe helps lower the cost,” Phillips said. “I don’t know if that’s feasible or not, but it would maybe help out with some of the budget issues.”

Phillips said he previously suggested looking for additional revenue sources to ease the burden on taxpayers.

“If we can try to find ways of other revenue to bring in to help alleviate taxes until hopefully our state comes up with something, that would be helpful,” he said.

He asked directors to consider residents already dealing with inflation, utilities, groceries, insurance and other costs.

“Don’t be the ones that added stress onto people,” Phillips said.

“Don’t be the ones that have to have people make decisions of not paying a bill and getting behind in that, don’t be a reason for people to maybe lose their homes because of not being able to pay their property taxes.”

Green said the district already works with other school districts through a consortium to negotiate better rates.

“I think we do come up with some good rates, good suggestion, but we’re already working on that,” he said.

Director Donna Kulp stressed the proposal is not final.

“This is a preliminary budget,” Kulp said. “This does not mean your taxes are going up the 4.8% that we show on the screen; this is the highest it can go.”

Director Gary Fedorcha said the district sets the rate high early because it cannot increase it later.

“The reason for doing (the 4.8% increase) is that whatever we set, we can never go up,” Fedorcha said. “So if there’s some drastic thing happens between now and the final budget, we could not raise it.”

Green said the final budget will be approved at the June board meeting.

He added that if directors want to reduce the tax increase, they should come prepared with specific cuts.

“Come up with some idea; don’t just say cut it and then dump it back and let the administration worry about it,” Green said.

Available funds

Molitoris said the district began July 1, 2025, with just over $18.5 million in fund balance. Current estimates show the district will use about $1.26 million to balance the 2025-26 budget, and that it also transferred $3 million into the district’s capital reserve account during the year.

While the district is projected to end June 30, 2026, with $14,306,762 in fund balance, Molitoris said the district will also have $3 million in capital reserve, leaving about $17 million total across the two accounts.

Total expenditures are projected at $44,218,800, while revenues total $42,202,739. Molitoris said that leaves a $2,016,061 shortfall, though the gap can be reduced depending on the final tax increase approved.

She estimated the fund balance would be $13,047,612 if the district uses $1,259,150 for one-time purchases, debt payments and benefit increases.

If fund balance is used to cover the remaining shortfall tied to recurring costs, it would drop to an estimated $11,031,551.

Tax impact

Molitoris said the 4.8% increase would generate $859,926 in additional revenue.

She said in Lehigh County, a median assessed home valued at $151,850 would see an estimated $111 increase. In Northampton County, a median assessed home valued at $46,200 would see an estimated $181 increase.

Molitoris said the value of 1 mill is currently $670,126.