The Northwestern Lehigh School Board in addition to unanimously approving the 25-26 proposed final budget discussed a possible 3.5% tax increase for the final budget at its May 14 meeting.

Board president Todd Hernandez began the discussion on the tax increase.

“I know we approved the proposed final budget which did have the tax increase in there just preliminary but we need a final number to put on to the final budget and give Christie Steigerwalt, business administrator, guidance for the reports that will be filed next month,” he said. “I know when Dr. Jennifer Holman, superintendent, gave her report she did highlight some scenarios out there, so hopefully everybody got a chance to look at that to see what we would like to do.”

Steigerwalt gave a recap of what was in the budget and what was on the update as well.

“So, the updates reflected the savings that we are receiving with the recent fuel bid, that was a savings of over $150,000 which with the savings from the fuel and the premium increases with our insurance it’s a total savings of $149,600, so that would bring our expenditures down to $55,204,399, she stated.

Steigerwalt said with regard to the revenues she will be getting another update before the June final presentation.

“As far as our assessed value that number will basically go up a few dollars. I’m not expecting a lot but with the decrease if we would do the 4% increase of 1.3, 3% would be around $1,000,000 of tax revenue and a 2% would be around $686,000,” she explained. “So our shortfall right now with a 4% would be just over $1,000,000 and with the 3% increase our shortfall would be almost $1,400, 000 and then the 2% would be a little over $1,700,000. So what we’re looking at is with 3% our increase for use of fund balance would be a little over $300,000.”

Holman explained if the board would go with the 4% there would be no increase out of the fund balance, if they go with something less than a 4% tax increase they will have to increase the amount they are going to be taking out of the fund balance.

Hernandez said in the proposed final budget they were expecting $1,200,000.

“So just to put it in perspective of what we reviewed last week. We had $1,200,000 use of fund balance so now we’re coming in at just a little more than $1,000,000 but if we went with the lower tax then we would be at $1,400,000 which is about $200,000 more than what we were looking at last week,” he said.

According to Holman, the differentials is the fuel cost.

A question was then asked as to what the fund balance was right now.

Steigerwalt responded saying “We ended the balance at $19,600,000 in fund balance as of June 30 of 2024.”

After further discussion on the tax percent options, the board decided on a 3.5% tax increase to be included in the final budget to be heard at the June board meeting.

A 3.5 estimated tax revenue would be $1,200,000, Steigerwalt said.

In other business, the board discussed the laws and cost of student enrollment at cyber charter and brick and mortar schools during Holman’s enrollment report at the meeting.

“So there is a law that determines not only what we have to pay for but who controls the tuition. So for cyber and charter schools they are public schools, different from the nonpublic schools, so those schools that were mentioned in terms of having a Christian focus or nonreligious focus would be a nonpublic school,” Holman stated. “All of the schools that are cyber and charter are considered public schools, so according to the law we have to pay for them, the students to go there. In terms of that deduction going from whatever the regular education amount is figured out by our budget as well as the special education amount, but it’s about $16,000 and $32,000.

“In addition to the students that attend a brick-and-mortar school, a school that has a physical location we are also required to transport those students if they are within 10 miles of the border. I say 10 miles because it’s not where the child lives it’s from the border and you know our border is big. I don’t even know the number but we transfer to a lot of schools and that is also part of the law of what we have to transport to and obviously there’s a cost to doing that. There’s about $2,000,000 in our budget that’s allocated for various cyber and charter schools every year and not here, it is not like public schools and nonpublic school.”

Holman said public schools like cyber and charter market themselves as free, free to the family not free to the school district of residents in which they attend, so the family does not pay to send their kids there, but they would in a nonpublic school.

Troy Sosnovik, assistant superintendent said if anybody ever wants to reference the law it’s Act 22 of 1997 better known as the Pennsylvania Charter School Law, that is what mandates the district to make those payments.

Holman added over multiple years there have been multiple bills that have tried to advocate to change the charter school law.

“We know that charter schools and even cyber charter schools are not going away in terms of parents making that choice but we do believe that they should be funded differently and we do believe that they should have equitable responsibilities in terms of how they’re held accountable. Some of the bills that have come out have passed for some of those things in terms of equitable responsibilities and accountability,” Holman said.

Willard Dellicker comments.

“We have 106 cyber charter school kids for $2,200,000 and 170 kids going to Lehigh Career and Technical Institute for $2,000,000. It’s more than our LCTI cost and it’s 170 kids versus 160 kids,” he stated.

Steigerwalt comments.

“Right now for 24-25, a regular education student cost us $16,679.27. For a charter school and for a special education student who goes to a brick-and-mortar charter school aka like Circle of Seasons we paid $37,245.53 for that student. If a special education student goes to a cyber charter school that is strictly online we paid $32,957.76 because they don’t have a physical school,” she stated.

She said that change was just made in January of 2025 and was part of the reform that was passed during the 24-25 school year.

“Our certified tuition rates that we used for 23-24 like I said 24-25 rates haven’t been certified yet, the elementary tuition rate was $15,456.41 and the secondary rate was $17,131.34,” Steigerwalt stated.