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LEHIGH VALLEY WEATHER

NASD budget approved with 2.47 percent tax hike

Nearly five months after it was proposed, the Northampton Area School District has a 2014-15 budget.

The final budget has been approved, but not without a few naysayers on the NASD school board, including board President David Gogel, who stuck to his stance for a lower tax hike.

The $91,592,153 general fund budget, approved by a 6-3 vote June 9, carries an increase of 1.18 mills, or 2.47 percent, from 47.71 mills to 48.89 mills.

Based on the district average assessment of $57,503.79, a property owner who paid on average $2,743.50 annually will now pay $2,811.36 each year, representing an increase of $67.85 annually, $5.65 monthly or $1.30 weekly.

In explaining why he rejected the administration's final budget, Gogel told The Press after the June 9 meeting, "I wasn't happy with the budget as it was presented. There's no way I could support 2.4 percent when I was lobbying for less."

Voting for the budget at the June 9 meeting were board members Chuck Frantz, Chuck Longacre, Judy Odenwelder, Dr. Michael Baird, Roy Maranki and board Vice President Jennifer Miller, the latter voting by phone.

Voting against the budget, in addition to Gogel, were board members Jean Rundle and Darin Arthofer.

"It's not that I don't want to fund education. It's just that some of the things we do, I don't agree with," Gogel said.

"The remark was made that it's only a few cents difference. But that few cents can make a difference for senior citizens and young families," Rundle told The Press after the June 9 meeting.

Rundle said she could have supported a Gogel-proposed compromise of a 2.34-percent increase, "not 2.0. That I knew wouldn't pass."

The June 9 board vote on the final budget was along the lines of a straw poll taken at the last school board meeting, May 19.

Gogel proposed the compromise 2.34 percent increase at the May 19 meeting.

In the straw poll taken May 19, favoring the 2.68-percent increase were Frantz and Longacre, who indicated they could support a 2.47-percent increase.

Favoring the 2.47-percent increase in the straw poll were school board members Miller, Oldenwelder, Maranki and Baird.

Favoring the 2.34-percent increase were Gogel, Darin Arthofer and Rundle.

Gogel led a surprise move at the May 5 meeting whereby the majority of the board balked at the administration's proposed 2.68-percent tax hike, saying they didn't want the hike to exceed the state-mandated allowable 2.5-percent tax hike index.

At the May 5 meeting, board members who said they'd support a budget with only a 2.0-percent increase were Gogel, Arthofer, Baird, Maranki and Rundle.

To ensure the budget process moved forward, school board members voted narrowly 5-4 at the May 5 meeting to approve a proposed budget that called for a 2.68-percent tax hike.

Board members voted unanimously 9-0 at the Jan. 27 board to approve a proposed budget that called for a 3.50-percent tax hike.

District Superintendent Joseph Kovalchik and district Business Administrator Terry Leh made the administration's first budget presentation at the Jan. 15 board meeting.

The $91,592,153 general fund budget approved by the school board June 9 is lower than $91,698,148 general fund budget approved by the school board at the May 5 meeting.

The 6-3 vote at the June 9 meeting also approved the athletic fund of $173,569 and the food services fund of $2,381,657.

Act 511 Local Tax Enabling Act, approved as part of the June 9 vote, sets the per capita tax at $5, real estate transfer tax at 0.5 percent and earned income tax at 0.7 percent.

Section 670 of the Pennsylvania School Code, approved as part of the June 9 vote, set the real estate tax at 48.89 mills.

There's a possibility that Pennsylvania could reduce education funding to school districts, including NASD.

Pennsylvania general fund revenues fell short in May for the sixth straight month. Harrisburg legislators must pass a balanced budget by June 30. The projected revenue shortfall is estimated at $1.3 billion.

"Joe [Kovalchik] and I will continue to review what they're [elected state representatives and Gov. Tom Corbett] doing out there [in Harrisburg, the state capitol]," Leh told The Press after the June 9 meeting.

"It's our job now as the administration to make sure we're properly using the funds to improve our students' education," Kovalchik told The Press after the June 9 meeting.

NASD has not had to furlough teachers and is managing an $80.7-million Northampton Area Middle School and Secondary Campus Renovation Project.

The 2.47-percent increase was achieved by reducing the budget contingency fund by $105,000, from $305,000 to $200,000.

No money was taken from the NASD unassigned fund balance, allowing it to remain at 7.65 percent of total budget expenditures. The Pennsylvania Department of Education recommends school districts maintain an unassigned fund balance of 5-8 percent.

One mill in NASD equals approximately $1,059,000.

Pennsylvania school boards must approve district budgets by June 30.