During the Northampton School Board meeting on Monday, Jan. 13, Superintendent Joseph Kovalchik and Business Administrator Craig Neiman presented the 2025-26 school year preliminary budget to directors.
Kovalchik reiterated that the presentation was merely the first run through of the budget, which doesn’t require submission for state approval until June, and therefore includes many potential reductions that the board will be able to weigh in on.
Neiman then shared some of the districts revenue highlights, which include numerous recent industrial developments such as JW Development Partners (Cesanek Road), 7345 and 7378 Airport Road, Century Commerce/Prologis (Liberty Drive behind Ace Hardware), Centerpoint/Geodis Willowbrook, FedEx Ground, Trader Joe’s, Fisher Scientific and Radar Distribution. The district is now realizing over $12 million annually in real estate tax revenue related to these properties.
Additionally, there are numerous recent housing developments in the district as well, which include the following: Toll Brothers (East Allen) – 246 on the books; Kay Homes – Fields at Willowbrook (Northampton Borough) – 56 on the books; Towpath Estates (Allen) – 83/93 on the books; Sunny Slope Crossings (East Allen) – 0/81 on the books; Stone Ridge extension (Allen) – 0/80 units on the books; Northampton Crossings (Northampton Borough) – 40 on the books; Bathview Phase III (Bath) – 36 units on the books; Vineyard Estates (Lehigh) – 0/18 units on the books; and North Hills of Allen (Allen) – 0/58 units on the books. Future considerations include Jaindl Seminary (Lehigh/Allen) – 475-500 units planned, Willowbrook Farm (Allen) – 508 units planned; Northwood Estates (Lehigh) – 198 units planned, High Meadow Phase 2 (Allen) – 37 units planned, Top of the Mountain Estates (Lehigh) – 34 units planned and Compass East subdivision (East Allen) – 45 units planned.
Currently, NASD’s millage rate is 56.27 mills, which is the second lowest school district millage rate in Northampton County. For the average assessed homestead value of $63,000, taxpayers in the district pay approximately $3,545 in property taxes prior to the homestead rebate.
Total revenue for the 2025-26 school year is projected to be $136.6 million, which is a $6.2 million increase or 4.7% from the 2024-25 budget.
Next, Neiman shared some of the expenditure highlights for the preliminary budget, which include salary costs reflecting contracted labor agreements and new staffing requirements, medical plan costs upwards of $125,000 (mainly for prescription coverage), pension costs based on the December PSERS Board certification over $700,000, charter school tuition costs of $1.4 million, contracted transportation costs over $1.3 million (accounts for new contract), BAVTS estimated and assumes acquisition of “The Factory” and SVSD’s exit from the articles of agreement costing over $700,000, debt service estimating and assuming staffing of five elementary schools and construction costs related to East Allen and Moore elementary schools as well as the George Wolf Elementary HVAC update costing over $2.3 million.
The majority of the district’s expenditures as reflected in their percentage of the 2025-26 budget include 38% salaries, 25% benefits, 10% debt service, 6% transportation, 5% charter schools, 3% CIU 20, 3% BAVTS, 1% legal/insurance/audit, 1% utilities and the remaining 8% includes IT network and applications, building and vehicle maintenance, special education placements, NCC, NASD NCA, building budgets, curriculum, public library, budget contingency and all other items.
The preliminary budget expenditures total $142.8 million, which is a $10.9 million or 8.3% increase from the 2024-25 budget.
Neiman also highlighted that there are significant shortfalls in state subsidies regarding special education, transportation and charter schools totaling over $31 million that the local taxpayer must foot the bill for, which inevitably contributes to the higher cost of expenditures.
Net revenue and expenditures reveal a $6,259,264 deficit that the district will need to generate funds for.
Later in the meeting, the board unanimously approved a resolution indicating that they will not raise taxes above the 4.8% Act 1 Index for the 2025-26 school year, so Neiman provided the following initial tax options to generate those funds.
Neiman then shared potential districtwide expenditure, program, personnel and capital reductions to cut costs that would help reduce the projected $6.2 million deficit for the 2025-26 budget that the board will weigh in on.
Possible operating budget ($580,000) reductions include reducing the copier fleet to save $36,000 (reduces fleet by 25%, staff inefficiencies with potential overtime grievances), eliminating the staff computer replacement cycle to save $150,000 (dated technology, performance, security, potential cyber attacks and insurance impact), reducing new library content to save $32,000 (dated materials, all grades impacted), reducing instructional supplies to save $50,000 (primarily online teacher instructional tools), reducing art and music supplies to save $25,000 (all grades impacted), reducing school-wide positive behavioral support programs to save $25,000 (primarily field trips and building activities for students), reducing professional development opportunities to save $25,000 (loss of continuing education and staff development), eliminating outdoor field treatment programs to save $15,000 (reduced grounds and athletic field quality), eliminating indoor air quality testing to save $12,000 (non-mandated, delayed recognition of air quality issues), eliminating the gym floor refinishing program to save $10,000 (floor appearance deteriorates), adjusting the districtwide temperature set point to save $100,000 (deviate from 73 degree set point, buildings will be warmer/colder) and eliminating four bus routes to save $100,000 (increased walking distance for students and parent inconvenience).
Possible programs ($9,860,000) reductions include eliminating student 1:1 devices to save $700,000 (transforms district delivery of curriculum, will need to develop new curriculum approach if chosen), eliminating NASD Cyber Academy to save $900,000 (cyber-charter alternative, 168 students impacted, will lead to high cyber-charter costs), eliminating middle school athletics to save $120,000 (230 students and 18 staff members impacted), eliminating middle school band, orchestra and chorus to save $420,000 (400 students and three staff members impacted), eliminating middle school world language to save $560,000 (395 students and four staff members impacted), eliminating elementary music to save $700,000 (all elementary students and 157 staff members impacted), eliminating high school athletics to save $1,500,000 (780 students and 157 staff members impacted), eliminating high school elective courses to save $4,760,000 (all high school students and 34 staff members impacted) and eliminating high school student clubs to save $200,000 (1,000 students and 100 staff members impacted).
Possible personnel ($2,190,000) reductions include no backfill of retiring teachers to save $1,400,000 (higher class sizes and additional workload for existing staff), eliminating substitute custodians to save $75,000 (delayed daily and deep cleaning, nine staff members impacted) and eliminating 10-month building secretaries to save $715,000 (reduced student services, nine staff members impacted, additional workload for remaining staff and potential increased overtime costs).
Possible support organizations ($305,000) reductions include eliminating facilities use by outside organizations to save $25,000 (energy and staff savings, no outside groups allowed to use facilities), eliminating community education programming to save $10,000 (energy and staff savings) and eliminating the public library contribution to save $270,000.
In sum, these potential reductions total $12,935,000 in savings that could address the $6.2 million budget deficit.
The 2025-26 budget timeline will include a preliminary budget vote from the board at the Feb. 10 meeting, which will advise the administration on how to move forward with a potential tax increase and budget cuts. Then, the administration will provide a budget update during the April 14, May 12 and June 16 meetings. The board must also approve the final 2025-26 district budget at the June 16 meeting.
The next Northampton School Board meeting will be held on Monday, Feb. 10 at 6:30 p.m. in the high school auditorium, located at 1619 Laubach Ave.