It's January and the word budget is on everyone's lips.

East Penn School Board reviewed a presentation of the 2015-2016 budget Jan. 12, which Superintendent Dr. Michael Schilder described as a broad outlook for the coming months. This is in preparation for the more specific budget talks that will begin in time for the board to present a proposed preliminary budget to the state by the end of January.

There are suggestions at this point the administration will recommend the board vote down the Jan. 26 scheduled motion to not exceed the state's Act I index. In a broader sense, the board will be voting on whether the millage rate will stay within the state's 2.20 percent index. If the board members vote it down, as administration will recommend, the district will apply for exceptions.

Schilder explained to the board for purposes of being able to file by Jan. 20 with the state, the district administration wants to "capture those exceptions" in hopes of not needing to use all of them. "To not take advantage of those now would be a mistake," he said.

The district has been approved for exceptions in past years but never taken the full amount of them. In the most recent budget year the state approved East Penn for a 4.48 percent increase; millage increased 3.34 percent. The year before that, 2013-2014, there was no increase.

For the coming budget year it is estimated the district could get approved for a 5.20 percent increase with exceptions.

The district financial officer, Deb Surdoval, explained the budget as it stood in general terms. Salaries are going up by 3.6 percent due to contractual obligations. Benefits are going up 11.8 percent but medical on its own is only increasing 2.8 percent. The budget subtotal without budgetary reserve is going up 4.9 percent, a change of $6,385,700.

Schilder emphasized this information is all very preliminary. What has to be decided now, he said, is how that increase will be funded– whether through exceptions, use of the budgetary reserve or trimming to the budget in the form of cuts. His guess at this point is a combination of all three.

The superintendent referred to the budget as "a maintenance only budget, simply trying to maintain what we have."

Some new things in the budget include two "floating" teaching positions for elementary classrooms above 30 in number. Currently there are seven classrooms in the district which qualify, all in the fifth grade and above.

Also suggested for the new budget is a position called School Resource Officer for the high school. Schilder has worked with these before and other districts surrounding East Penn have at least one. Allentown has four; Parkland has two. The SRO is employed and trained by the Emmaus Police Department, and specifically trained in law enforcement and counseling with students.

Schilder described the SRO's role as including one of "teacher as it relates to law enforcement." It's a proactive idea, he said, not simply one to prevent violence. Schilder attested to situations when students might go to an SRO with information or to ask for help when they would not go to the school's direct administration.

"A good officer can have a tremendous impact on a school environment," Schilder said. The cost is estimated at $100,000 in the budget.

The administration also wants to replace marching band uniforms at a cost of $50,000; the current uniforms in use are 11 years old.

Current unknowns in the budget include state and federal funding; warehouse construction projected within the district not yet begun; assessment court appeals which have slowed down since the last assessment; and charter school costs, which have been projected at another increase.

Charter school costs have increased every year since 2001-2002. The current projection allows up to $4 million in costs.

Positive influences on the budget are savings in debt service due to refinancing and low interest, a lower expenditure in benefits than originally budgeted and a lower expenditure in student transportation.

The board will vote on whether to exceed the index Jan. 26. If this motion is voted down the board will vote on the proposed preliminary budget Feb. 9.

In other business, the board formally recognized Willow Lane teacher Jane Yeakel for her achievements as recently having received National Board Certification. Board Director Samuel Rhodes culls teachers from the district each year toward gaining this certification, which is a voluntary but rigorous one currently held by about 110,000 teachers nationwide. Rhodes called the experience "transformative" and is an advocate for this approach across the country.

The board also review-ed a first reading of revisions to five district policies on tobacco use and possession by students, staff and faculty. Dr. Denise Torma, assistant superintendent, led the administration on revising the policies, based on PA School Board model policies and with input from the administration and the board solicitor where necessary. The revisions will come up for a second reading at the next board meeting, followed by a vote on final changes.

After a brief presentation from Ann Thompson of Lehigh Carbon Community College, the board voted to approve advanced authorizations for the college to purchase real estate acquisitions. LCCC is looking into buying new property in both Allentown and Carbon County, but as Thompson explained, the transaction becomes difficult when realty agents don't want to wait for all the red tape the college has to go through with all of its constituent school districts. Advanced authorization allows specific parameters for a purchase and enables the college to land purchases quickly for desirable sites. Thompson emphasized there is no additional capital contribution involved.