A new proposal, if approved, may lower the expected property tax increase for 2017-18 in Northampton Area School District.

The NASD administration is recommending to reduce the percentage increase to 2.99 percent, down from the 3.47-percent increase first proposed.

The 2.99-percent increase would increase millage by 1.53 mills, from the 2016-17 millage of 51.24 mills to 52.77 mills for the 2017-18 district general fund budget.

That’s under the state-mandated 3.1-percent tax increase for the district’s 2017-18 budget.

The 2.99-percent tax hike would generate $1,648,066. The administration would use $3,604,294 from the district fund balance to close a deficit of $5,252,360.

Based on the NASD 2016 average assessment of $58,094, which comprises 60 percent of district residents, the 2016-17 tax bill would increase from $2,976.74 to $3,065.62, or $88.88 more annually, $7.41 more monthly and $1.71 more weekly.

That’s a decrease from the proposed increase of 3.47 percent, which called for a 1.78 mill hike, from 51.24 mills to 53.02 mills, which would increase the tax bill from $2,976.74 to $3,080.14, or $103.41 more annually, $8.62 more monthly and $1.99 more weekly.

The 2017-18 preliminary general fund budget was presented at the Jan. 9 board of education meeting.

The 2.99-percent increase was one of six options presented by NASD Superintendent of Schools Joseph Kovalchik and NASD Business Administrator Terry Leh to the board of education at the April 10 meeting.

There was no discussion by school directors after the approximate 30-minute, 25-page PowerPoint presentation by Leh and Kovalchik.

“We would not recommend going below 2.99,” Kovalchik said of the percentage increase.

In addition to the 2.99-percent increase, which is Option No. 3, Options 1-6 include increases of 4.2 percent, 3.47 percent, 2.50 percent, 1.99 percent and 0.0 percent.

Kovalchik said he will seek direction from school directors on the options at the 6:30 p.m. April 24 board meeting in the administration building, 2014 Laubach Ave., Northampton.

The administration would like for the 2017-18 proposed budget to be adopted at the May 8 board meeting.

The 2017-18 final budget adoption would be advertised by June 2.

The 2017-18 final budget would be adopted June 12. School districts in the commonwealth are required to adopt budgets by June 30.

Kovalchik cited what he called “wild cards,” or uncertainties.

“If Access money is reduced or eliminated, the school district would have to find $140,000,” Kovalchik said.

Access funds are federal Medicaid reimbursements to provide medically needed services to children with disabilities. This amounted to $139,812 for NASD.

There are potential cuts in federal Title I and II funds, which provide salaries, resources, professional development, summer and parent programs. This amounted to $1,011,651 in 2015-16 and 2016-17.

And there’s state House and Senate Bill 76, which would eliminate local property tax collection.

In their presentation, Leh and Kovalchik outlined decreases to the 2017-18 budget that resulted in the reduced tax hike:

• Five professional staff retirements, with one not replaced, for a reduction of $274,204

• Keystone To Opportunity supplies, textbooks, professional training and services, for a reduction of $279,503. The KTO grant has expired.

• Bethlehem Area Vocational Technical School budget contribution for a reduction of $154,392

• Local revenue adjustments in real estate, delinquent real estate and delinquent earned income tax for a reduction of $128,554

• Pennsylvania Gov. Tom Wolf’s 2018 budget includes Department of Education (PDE) increases in basic education of $211,296 and special education of $74,580 (calculated at 50 percent of the proposal by the NASD administration) for a reduction of $142,938.

• Five custodian retirements, with all replaced at lower new employee salaries for a reduction of $32,479

Balanced against the decreases to the 2017-18 budget are increases that would include:

• Intermediate Unit 20 increase of $293,582

• Public School Employees’ Retirement System increase from 32.04 percent to 32.57 percent for an increase of $103,874

• A new employee to be hired as a custodians supervisor for an increase of $99,447

• A new employee in the NASD tax office for an increase of $55,750

• Salary increases for substitute teachers for an increase of $55,477

The 2017-18 budget also calls for the hiring of an IU teacher, an IU instructional aide and a districtwide speech and language teacher.

NASD received approval from the PDE for $614,624 in exceptions to raise taxes by a percentage more than the 3.1-percent index mandated for the district’s 2017-18 budget.

PDE approved exceptions for NASD in PSERS retirement contributions of $274,773 and special education expenditures of $339,851.

The 2017-18 preliminary budget, first presented at the Jan. 9 school board meeting, has expenditures of $102,814,673, revenues of $97,102,316 and a deficit of $5,712,357.

The school board voted Jan. 23 to approve the preliminary budget, as well as for the athletic fund, $212,034, and food service fund, $2,413,955.

In the April 10 presentation, Kovalchik listed additional cuts to reduce the 2017-18 budget:

• Textbook reserves and replacements, $73,725

• Remedial and instructional materials and supplies, $58,600

• High school classroom printers, $53,502

• Replacement computers for George Wolf Elementary School lab, $41,010

• Skid steer loader, $37,300

• Administration, secretary computers, $36,941

• Elementary school field trips, $35,000

• Pre-K programs, $40,000