NORTHAMPTON, Pa. — To offset a growing deficit, Northampton Area School District is projecting the need for multiple tax hikes over the next few budgets.
It's also looking at postponing a long-awaited renovation at Moore Elementary School.
In a budget presentation to the school board Monday, district Business Administrator Craig Neiman said the deficit is looking “a little alarming” over the next four years.
That especially would be true if the district doesn’t raise taxes — by the 2028-29 budget cycle the deficit would balloon to $17.5 million, Neiman said.
For the upcoming 2025-26 budget, Neiman estimates a $3.7 million deficit.
The district would be able to mostly offset that amount through a 4% school property tax increase, costing the average household an extra $141.80 annually in property taxes.
The district still would have to use $502,867 from its fund balance — which will be $18 million by June — to cover the difference.
The district’s 2025-26 expenditures, which increased 6.6% from last year, surpass its revenue, which only increased 5% from the previous year, Neiman said.
“I think a lot of other school districts would be thrilled to be in the situation we’re in, where we are still seeing growth at the local level from assessment increases."Craig Neiman, Northampton Area Business Administrator
For the upcoming budget, Northampton Area’s projects $140.6 million in spending, which would go mostly toward staff salaries and benefits, debt service and charter school tuition payments, Neiman said.
The district also plans to allocate $3.4 million toward Bethlehem Area Vocational-Technical School, which is executing a renovation project at its new South Bethlehem satellite campus.
Northampton Area is among three school districts that send students to BAVTS and share costs.
For revenue, Northampton Area anticipates $136.9 million, Neiman said, of which $92 million comes from local sources — an increase of $4 million in local money from the last budget.
“I think a lot of other school districts would be thrilled to be in the situation we’re in, where we are still seeing growth at the local level from assessment increases,” Neiman said.
Spending cuts
Still, it’s not enough and a deficit exists, though it’s down by $2.56 million from January projections.
That’s thanks to a budget reduction plan developed by the Northampton Area administration at the direction of school directors.
“We tried to stay away from student activities, student programs and basically the impact on students overall,” Superintendent Joseph Kovalchik said.
Neither the proposed reductions nor the potential 4% tax increase have been approved yet by school directors, who will vote on a proposed budget in May.
“All of that, of course, is going to have some sort of impact because the work has to go somewhere."Jospeh Kovalchik, Northampton Area Superintendent
According to the spending savings plan, the district would reduce its workforce by seven positions through attrition, saving $1.26 million.
Those positions include three custodians, a middle school assistant principal, a school psychologist, a secretary and an instructional assistant.
Staff members with dual certifications would be transferred to open roles.
“All of that, of course, is going to have some sort of impact because the work has to go somewhere,” Kovalchik said.
The district also would save funds by delaying staff computer replacements, adjusting the temperature set point in its buildings, eliminating substitute custodians and decreasing building budgets.
It also would reduce library and instructional materials.
Additionally, the district won’t have to contend with spending for the Moore Elementary renovation in the 2025-26 budget because the project won’t begin until summer 2026, if not later.
That frees up $900,910 in spending from the January budget projections.
Delaying Moore renovation
At Monday’s meeting, school directors also discussed potentially delaying the $51 million complete renovation at Moore Elementary even longer.
That move would make the funds for financing the project available for other uses in the meantime.
The school board removed two contract updates from its Monday agenda that would have secured engineering and architectural services for the Moore Elementary renovation.
It did so because of the district's budget uncertainty.
School directors Joshua Harris and Brian McCulloch were the only two to oppose the removals.
“If it means delaying Moore in order to get some sense to the budget, then I can support that."Michael Baird, Northampton Area School Board Director
Harris said he fears the Moore Elementary project is going to get nixed and the school closed if the renovation doesn’t move forward soon.
But school board President Kristin Soldridge said the decision not to vote on the contract updates Monday was “not a statement of permanent closure with Moore.”
Still, projections show that delaying the Moore Elementary renovation and its financing costs would help address deficits in 2026-27 and the following two budgets.
In some cases, those available funds would lower the anticipated tax hikes needed by the district.
“To me, it looks like the Moore project might have to be extended out to at least the year 2028, perhaps 2030 — not to forget about it, but to be able to fit it into our budget without raising taxes too significantly," said school Director John Becker.
“If it means delaying Moore in order to get some sense to the budget, then I can support that," added Michael Baird.
Board President Soldridge said Monday's budget news is not a “death sentence” for Moore Elementary. The board will continue fighting for extra money to go toward the renovation project, she said.
“We will continue to do whatever’s necessary to keep Moore an elementary school,” Soldridge said.
