On a night when the Northampton Area School Board honored its Skills USA District 11 and state competition winners, the administration proved its skills in whittling by reducing a proposed budget increase to 2.38 percent.

Still, it wasn't enough to please board President David Gogel and board member Jean Rundle, who voted against the budget.

The proposed general fund budget for 2013-14 of $88,785,952 was approved 6-2, with one member absent Monday night.

If approved at the 6:30 p.m. June 10 meeting, when the budget is expected to be on the agenda for final approval, the tax rate will increase by 1.11 mills, from 46.65 mills to 47.76 mills.

Based on the average $57.376.49 NASD property assessment, taxes will increase $63.69 annually, $5.31 monthly, and $1.22 weekly.

The proposed 2.38-percent increase is down from the previously requested 2.68 percent increase of 1.25 mills, proposed at the April 22 school board meeting.

At the 2.68 percent rate, the average tax bill would have increased $71.72 annually.

It's also a reduction from the 3.14-percent increase proposed when the 2013-14 budget was unveiled Jan. 14 by NASD Superintendent Joseph Kovalchik and Business Administrator Terry Leh.

"We've worked very hard to whittle it down without jeopardizing programs," said Kovalchik.

The tax hike will plug a $201,000 budget shortfall. When the budget was proposed, there was a $460,000 shortfall.

When asked after the meeting by The Press why he voted against the budget, Gogel said, "I want to get to the index. I don't go for exceptions."

NASD is allowed to increase taxes by 2 percent, based on an index formulated by the Pennsylvania Department of Education (PDE).

The school board approved the administration applying to PDE for Act 1 exceptions. PDE approved an NASD increase of up to 4.09 percent.

The exceptions were for $311,886 in special education and $738,185 in Public Safety Employees' Retirement System (PSERs) for a total of $1,050,071, or 1.91 mills. The administration has held that it never intended to invoke the full PDE approved 4.09-percent increase.

When asked why she voted against the budget, Rundle said, "I'm still not happy with the budget. I hope they'll [the administration] work on it a little more to get it lower."

That might happen if $246,000 in increased PDE funding for NASD is approved.

"If the state gives us more money before June 30, we can get to the index," Gogel said.

"But the thing is, we won't know that until June 30," Kovalchik said.

The state budget is not expected to be approved until July.

Leh is not counting on a PDE funding increase and has not factored it into the budget.

However, if NASD receives the increased state funds, it would be applied to the $201,000 shortfall and get the district to the indexed 2-percent increase which technically, Leh said, is actually 1.97 percent.

If that happens prior to the NASD budget approval, the average tax bill would increase $52.79 annually.

Kovalchik said that without the increased state funding and without the 2.38-percent tax hike, NASD has three options to balance the budget:

· Use fund balance money;

· Cut programs, or

· Use contingency funding.

The contingency funding is set aside for possible additional teacher hires should kindergarten and/or special education student enrollment increase unexpectedly during the summer because of new families moving into the district.

"That's where we stand right now," Kovalchik said.

Leh said he wanted the board to vote on the proposed budget May 6, so that the district would have 30 days to advertise it and make it available for public inspection prior to it being presented for a final vote at the 6:30 p.m. June 10 school board meeting.

State law mandates school budgets be approved by July 1.

To get to the lower 2.38 increase, Kovalchik said $40,000 in maintenance was deferred, $40,000 in Intermediate Unit 20 psychological services was cut and a high school office secretary job is not being filled. A $15,000 revenue increase brings the total to $150,000.

Board member Dr. Michael Baird expressed concern about deferring maintenance. Gogel agreed.

"We don't want to get into the situation of previous administrations and then we have a big bill," Gogel said. "Whatever it takes, we'll put money aside."

Gogel said that parking lots need improvement at Lehigh and Moore elementary schools. Gogel said the Lehigh heating system needs improvement.

Still, he said, "Our maintenance at all buildings is going well."

The board also approved, but by an 8-0 vote, the $179,868 athletic fund and $2,414,931 food services fund for 2013-14.

"Terry [Leh] and I tried to strike a balance," Kovalchik said. "And it's not just Terry and I. We've listened to you [school board members] and we've met with every administrator."

"I want to thank Joe [Kovalchik] and Terry [Leh]," said board member Jennifer Miller.

Baird asked about the NASD fund balance.

Leh said that the $2.6 million from the fund balance being used to balance the 2013-14 budget is less than the $3.4 million used to balance the 2012-13 budget.

"Our goal is to reduce that amount by working with the administrators," said Leh.

"We've done a whole host of good things here – projects, reducing class sizes and other cost-savings," Kovalchik said.

Kovalchik cited two cost-reduction items on Monday night's agenda, which were approved 8-0 by the school board:

· A contract between Hess Corp and NASD for a possible $45,000 savings, first year; $25,000, second year; and $27,000, third year, in electricity costs during summer months. "All that Bob Yanders [NASD director of operations] has to do is pull a power switch when the kids aren't here," Kovalchik said.

· An agreement between Commerce Bank and NASD for direct payment to vendors, with a projected $50,000 windfall. "It's at no cost to the district," Leh said.

"These are some of the things going on that are of real advantage to the school district," said Kovalchik.

The school board next meets at 6:30 p.m. May 20.

The May meetings are changed from the regular second and fourth Mondays because of the May 27 Memorial Day holiday.