Parkland School District Business Manager John Vignone has presented a first look at the 2013-14 budget to the school board.

While cautioning the figures are preliminary and certain to change, he told school directors at their Nov. 20 meeting several factors will impact revenue, expenditures, and the rate of taxation.

Parkland's mandated requirement for the state employee retirement system will cost $3.2 million more than the previous year, a 4-percent hike in the district's liability rate.

Vignone anticipates no increase in federal funding and stated the district may actually face a reduction due to the sequestration process.

Robert Thornburg, director of school services, could lose $2.5 million in salaries for special education staff, if the federal government cuts everything "across the board," explained Vignone.

He said the health care reform act will have a major impact on the school district in relation to staff contracts.

"This will cost us more. Insurance costs will go up," Vignone said.

He projects medical costs will increase 5 percent, which would be $700,000 more than the previous budget.

The business manager noted cyber and charter school payments are expected to go up $245,624 over the previous year.

Parkland is obligated to pay cyber and charter school tuition for district students enrolled in those education venues.

Salaries will increase $2,063,238, an amount determined by staff contracts, while benefits are projected to increase $3,714,543.

Vignone found a few bright spots where revenue may increase.

These include earned income tax and real estate transfer taxes, although not much benefit is expected from new construction.

Overall, Vignone projects expenditures of $145,282,611, a 5.46-percent increase over the previous year.

Revenues are expected to be $135,822,125, which results in a $9,460,486 shortfall for funding the budget.

Vignone reported the district is waiting for additional information on the 2012 Lehigh County reassessment.

"We do not have those numbers yet," Vignone said. "We'll have to develop a new millage based on the new assessment values."

Even when the assessment figures are released, the district will have to watch for the appeals which could cause a reduction.

"Some appeals go to court," Vignone said. We don't want to overestimate our revenue."

He also noted Act 1 permits a 1.7 percent tax increase for Parkland.