Northern Lehigh School District anticipates putting about $750,000 into fund balance as it continues to piece its next spending plan together.

Sherri Molitoris, co-director of business affairs/human resources, reviewed the proposed 2021-2022 preliminary budget with the school board last week.

“There’s a lot of stuff still going on in our budget, and we have to have it finalized in May for a proposed preliminary budget for approval,” Molitoris said.

Superintendent Matthew J. Link said COVID-19 has had some effects on the district’s food service department, which is self-sustaining.

Link said the negatives are loss of revenue from monthly general operating profits, meaning average daily losses from a la carte sales, minor catering, and less overall participation. Some of the positives include possibly recouping some loss revenue during the summer feeding program approved by the USDA, as well as generous donations from various community groups and individuals.

Molitoris discussed COVID-19 effects on the 2021-2022 budget year and beyond. The district has agreed to not raise taxes over the adjusted index of 4% per approved Act I Resolution in December.

With putting about $750,000 back into fund balance, the anticipated fund balance is $10.5 million by the end of this school year, June 30, 2021.

“My prediction currently is we’re not going to be using fund balance, we’re actually going to be putting some fund balance back in.”

Recommendations

• Peters Elementary: two additional support staff are planned to address learning loss, with relocation of one professional staff position to Slatington Elementary School based on class sizes. Playground equipment upgrades are desirable, and considering action to be funded through the COVID CARES funds.

• Slatington Elementary: two additional support staff; and no budgetary increases for materials or programs.

• Northern Lehigh Middle School: one additional support staff; a reduction of one professional position (English Language Development Program/Gifted) through attrition; and no budgetary increase for materials or programs.

• Northern Lehigh High School, recommendations are status quo for support staff and professional staff; and no budgetary increase for materials or programs.

Costs

Molitoris said 2021-2022 costs include increases in salaries, $483,000; retirement, $212,000; medical, $200,000; Social Security, $32,000; charter school, $456,000; technology, $50,000; and Lehigh Career & Technical Institute, $75,000. Cost reductions include electric, at $25,000; heating oil (waiting for bid on April 30); and outplacements ($25,000).

Molitoris discussed millage rates for Lehigh County, which will remain the same, and Northampton County at slightly below what they were this year, as the step ratio did not change as much between both counties.

“If we would end up saying that we are not going to raise taxes during the 2021-2022 school year, we would see a loss of $338,000 in our real estate tax collections next year by raising it up to 93.75%,” she said.

The district’s estimated fund balance as of June 30 shows a beginning fund balance of $9.7 million.

“Our current year budget is right now $1.1 million short, but that current budget does not take into consideration any employee retirements that have been received or anything that’s going to happen with health care with premium share costs,” she said.

Molitoris said the plan is to end at about $10.5 million at the end of the school year.

She said as of now, expenditures total $34,377,801, with revenues coming in at $33,180,079, leaving a budget shortfall of $1,197,722.

Of that shortfall, Molitoris noted the state retirement increases, the district previously committed $212,000; and health care increase, the district previously committed $200,000; meaning the additional amount needed to balance the budget is $785,722.

She said if the district receives a state basic education subsidy increase of $116,883, and a special education subsidy increase of $233,664, that would offset some of the $785,722.