Northern Lehigh School District’s projected 2021-2022 spending plan currently calls for a 4% increase.

On a 6-1 vote, the school board on Monday adopted the proposed general fund final budget for the 2021-2022 school year in the amount of $33,796,908.

The preliminary budget is adopted with a 24.0257 millage rate for Lehigh County, and a 67.9123 millage rate for Northampton County.

Board President Gary Fedorcha said the board will vote on the budget again in June.

“There could be changes to this,” Fedorcha said. “This is no way how we are going to end our school year and our budget.”

Director Robert Keegan Jr. was opposed. Directors Mathias Green and Robin Distler were absent.

Before the vote, Sherri Molitoris, co-director of business affairs/human resources, gave an update on the proposed final budget.

“We are anticipating this year having more revenues than expenses, and we’re currently looking at probably putting somewhere around $750,000 back into our fund balance,” Molitoris said.

Molitoris said the district previously agreed not to raise taxes above 4%, which is the district’s adjusted index.

“We did not apply for any exceptions, which we could have applied for exceptions for special education and (Public School Employers Retirement),” she said. “And our anticipated fund balance at the end of the 2021 school year, I’m anticipating to be somewhere around $10.5 million.”

Recommendations

• Peters Elementary: two additional support staff funded through the Elementary and Secondary School Emergency Relief Fund; relocate one professional staff position to Slatington Elementary School based on class sizes; no budgetary increase for materials or programs; and playground equipment upgrades being considered through ESSER funds.

• Slatington Elementary: two additional support staff funded through ESSER funds; relocate one professional staff option from Peters Elementary based on class size; no budgetary increase for materials or programs.

• Northern Lehigh Middle School: one additional support staff funded through ESSER funds; reduction of one profession position (ELDP/Gifted) through attrition, and no budgetary increases for materials or programs.

• Northern Lehigh High School: no increase in support staff, professional staff, materials or programs.

Costs

Molitoris said 2021-2022 costs include increases in salaries, $208,943; retirement/PSERS, $131,057; medical, $28,888; charter school $456,000; technology $50,000; and LCTI ($75,000). Cost reductions include electric ($25,000); heating oil (waiting on bids, likely $25,000 to $50,000 savings); and outplacements ($25,000).

“If we would happen to do a potential tax freeze so that we would keep our Lehigh County and our Northampton County tax collection millage rates the exact same, we would have a loss of $679,309 in our revenues,” Molitoris said.

She said expenses are $33.79 million, and revenues are $33.02 million, leaving a budget shortfall of $772,448.

“If we would allow to increase by 4% we would see $679,309 in additional revenue,” Molitoris said.

She said the district estimates its current fund balance at the end of June to be about $10.5 million.

Molitoris added that using the fund balance would result in the 4% increase being adjusted.

She recommended the district use $131,000 out of PSERS portion of the fund balance, and use almost $29,000 out of medical in committed fund balance, which would leave a budget shortfall of $612,500.

“So at that point in time, the board has to decide whether they want to raise taxes in order to meet that $612,000, or if they want to use fund balance in order to offset that,” Molitoris said. “If we do take everything out of fund balance, we’ll end next year ending June 20, 2022, with about $9.7 million left in our fund balance.”

Potential additional revenues include the Basic Education Subsidy increase ($116,883) and Special Education Subsidy increase ($233,664).

“These are not in our budget; if we end up determining that we think it’s going to stay and we add them in at $612,000, when we put these revenues in, we’re down to about $300,000 needing to balance our budget,” she said. “This is a moving target right now; the state doesn’t have to pass their budget well beyond when we pass ours, and sometimes they’re supposed to pass it by June 30, and it’s into July or August until they pass it.”

Superintendent Matthew J. Link said the administrative recommendations were for the board to consider a tax increase and utilization of fund balance to generate some revenue for upcoming year; transportation subsidy (continue to work with Brandywine for fixed costs); and to continue to look for opportunities to decrease expenditures and/or increase revenue as more information becomes available on ESSER’s or federal programs.