First of two parts

The Northampton Area School District preliminary budget for the 2024-25 school year has expenditures of $132.5 million, revenue of $129.1 million and a deficit of $3.4 million.

To balance the budget, the 2024-25 initial tax options include an increase of 0.28 mills, or 0.5%, to generate $361,815 in revenue and using $3,075,462 from the district fund balance.

The average annual tax bill increase for district property owners would be $17.55, according to a presentation at the Jan. 8 NASD school board meeting.

The 2024-25 budget is an increase of $4.1 million, or 3.2%, in expenditures from the 2023-24 budget of $128.4 million.

NASD Superintendent of Schools Joseph S. Kovalchik and NASD Business Administrator Craig Neiman gave the presentation, which included answers to several board members’ questions. Each page of the presentation was projected on a large screen in the auditorium of Northampton Area High School during a meeting attended by an estimated 50 persons.

“This is the first go-round for the 2024-25 budget,” Kovalchik said.

A copy of the 39-page presentation is expected to be available on the NASD website - nasdschools.org.

The presentation reviews district revenue, expenditures, charter school costs and enrollment, nonpublic school enrollment, cyber schools, Bethlehem Area Vocational-Technical School and Northampton Community College contributions, special education costs and subsidies, expenditures versus state subsidy, NASD staffing, PSERS contribution, NASD fund balance, NASD capital improvements and the 2024-25 budget timeline.

The NASD school board voted Nov. 13, 2023, not to exceed the Act I Index of 6.6% for a tax increase.

Moving forward, the budget timeline includes an update to the board April 8; proposed budget vote May 13; and the final budget vote June 10.

The presentation began with an overview of market and assessment value growth in NASD. On the revenue side, market value in 2022 increased 18.9% from 2021. The assessment value in 2022 increased 4.3% from 2021.

The market-assessment ratio is “down to 30% as of 2022,” pointing to “potential improprieties between similar properties,” according to the presentation.

Neiman said the ratio disparity indicates the need for Northampton County to undertake property reassessment, reportedly last done in the 1990s.

Allen Township leads NASD municipalities in assessment value increases, reaching nearly $250,000,000 in 2022, up from more than $50,000,000 in 1999 - an increase of 252%.

East Allen Township’s assessment value among NASD municipalities reached nearly $200,000,000 in 2022, up from nearly $150,000,000 in 1999 - an increase of 40%.

Lehigh Township’s assessment value is the highest among NASD municipalities, at nearly $300,000,000 in 2022, up from more than $200,000,000 in 1999.

Moore Township’s assessment value is the second highest among NASD municipalities, at more than $250,000,000 in 2022, up from $200,000,000 in 1999.

Bath, Chapman and Northampton boroughs assessment value increases have been slight in 2022 compared to 1999.

“We have a ton of industrial development going on,” Neiman said.

Recent industrial developments, according to the presentation, include JW Development Partners, Cesanek Road; 7345 Airport Road; 7378 Airport Road; Century Commerce, Liberty Drive; Centerpoint-Geodis Willowbrook; FedEx Ground; Trader Joe’s; Fisher Scientific; and Radar Distribution.

The “district is now realizing over $9 million annually in real estate tax revenue related to these properties,” the presentation reported.

NASD revenue from industrial development was less than $1,000,000 in 2010.

Neiman said the industrial development revenue increase is partly because of district-initiated reverse tax appeals.

The NASD school board will next meet 6:30 p.m. Feb. 12 in the Northampton Area High School auditorium, 1619 Laubach Ave., Northampton.

Next week: Preliminary budget, part two