Northern Lehigh School District has approved the 2021-2022 budget with a 2% increase.

On a 6-2 vote, the school board on Monday adopted the 2021-2022 general fund final budget. Directors Mathias Green and Donna Kulp were opposed. Director Robin Distler was absent.

The budget calls for a millage rate of 23.5637 in Lehigh County, and a millage rate of 66.6064 in Northampton County.

That means a person with a median assessed home in Lehigh County will see a $70 increase, while a person who lives in Northampton County will see a $51 increase.

Sherri Molitoris, co-director of business affairs/human resources, said expenses were $34,522,628, while revenues were $33,793,721, which left the district with a $728,907 deficit.

The district plans to use $131,831 out of fund balance to offset the retirement increases, $254,760 out of fund balance, and $342,316 in additional revenue the district is going to realize from the 2% increase, to offset the $728,907 deficit.

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Director Mathias Green commented on the budget.

“Yes, that’s a lot of money coming in; it looks great, but we can’t use one penny of that in our general fund, it all has to be for specific items,” Green said. “And the problem I have with that - not that we don’t necessarily need the items - is it’s taking away what I believe is one of the basics of education in the state of Pennsylvania, and that’s local control, and the state and the federal government are in essence telling us if you want our money you have to do (what we want you to do), and I’m not comfortable with that, that’s problem number one.

“The second problem is I think it’s damn time that the state does something about their unequal tax situation,” Mathias said. “I guess I’m just not comfortable voting for a tax increase at this point in time. I think we have an adequate fund balance; yes we’re going to have to dig into it to pay the bonds back.”

Before the vote, Director Gale Husack voiced some concerns.

“I’m concerned what the future looks like, that you have inflation, you have our contracts and things like that we just signed over the last couple years that are going to extend three to four years out and bond payments and what does that look like and if I’m a current taxpayer, not that I want an increase, but I’d rather see a $50 increase than a $300 increase,” Husack said. “My fear is that we put some things in place over the year and we’re only looking at an immediate answer, and not really looking at what may be a two or three or even five-year would look like with our without any kind of increase.

Molitoris agreed and said to do some kind of a tax increase now that would help offset some of the bond payments that are going to come back to fruition next year.

Husack took it a step further.

“I just look at inflation just in general, we’re already at 5% inflation rate increase, and we’re not even really through the COVID pandemic,” she said. “As we start to go with the end of this year and even the beginning of next year what our budget will look like, those expenditures that we’re looking at could be more than what we’re even anticipating on today’s budget.”

Molitoris said in her opinion, she’d rather see low and little tax increases now versus getting to that point where the district has to go over the Act 1 index.

Husack added, “I think we just have to be fiscally responsible not only for this year, but for the future of what we want our district to look like, and understand what some of those ramifications could be on things that we’ve already approved, contracts we’ve already approved, and even what’s going to lie ahead of us with changes of charter schools and things like that as we move forward that are still so unsure.”

Board President Gary Fedorcha attempted to address some of those concerns.

“When we are looking at those (Elementary and Secondary School Emergency Relief Fund) numbers, please understand none of those ESSER numbers can supplant any of the budget,” Fedorcha said. “Those are up and beyond, so when we talk about budget, that has no reflection.”

Director Michele Martineau asked if the district is seeing any uptick in expenditure, since as a homeowner, she’s seen an increased costs in fuel and wood, and was wondering if materials and things for the district’s buildings are increasing and if they are thinking of that moving forward.

Superintendent Matthew J. Link noted that about two weeks ago, the district had to lock in its fuel bids.

“There was an increase in the cost for heating fuel and just diesel in general, however we also again this year eliminated a tanker truck load because of the improvements to our heating systems throughout the district,” Link said. “Yes, there was an increase in cost per barrel, but we were able to reduce the number of barrels needed.”