The Northampton Area School District 2025-26 final budget was adopted by the board of education, with a general fund budget of $140,659,873, supported by a 4% increase in the district real estate tax.

The budget and tax hike are unchanged from a nonbinding vote of school directors taken by Business Administrator Craig Neiman at the April 14 school board meeting, when six school directors said they backed a 4% tax hike.

The vote at the June 16 school board meeting to adopt the NASD 2025-26 final budget was 5-4.

Voting to adopt the budget with a 4% tax hike were school Directors Dr. Michael Baird, John Becker, Ross Makary, Doug Vaughn and Parker Flamisch.

Voting to not adopt the budget with a 4% tax hike were school board President Kristin Soldridge, Vice President Nathan Lichtenwalner and school Directors Joshua Harris and Brian McCulloch.

At the May 12 meeting, school directors voted 5-3 to approve the 2025-26 proposed general fund budget of $140,659,873 with a rate of 58.52 mills and to authorize the administration to advertise and make the proposed budget available for public inspection.

School directors voted 9-0 at the Jan. 13 meeting to approve a resolution to not raise the tax rate more than the state-mandated 2025-26 Act 1 Index of 4.8%.

The 4% tax increase will generate $3,201,288 to offset the budget deficit. The deficit will also be offset by an expected $285,867 from the district fund balance.

The budget sets the district real estate tax at 58.52 mills. That’s a millage increase of 2.25 mills, from 56.27 mills. That translates to a property tax bill increase of $137.47, from $3,438.10 to $3,575.57.

Taxpayers who qualify for the Homestead and Farmstead Tax Relief should see their tax bill reduced from that amount. The Homestead deduction for 2025 is $198.40 from the $3,575.57 tax bill, which would result in a net tax bill of $3,377.17, or an increase of $110.93. The average 2024 Homestead assessment is $63,000, based on the median Homestead assessment of $61,100.

There are 12,827 homesteads and 70 farmsteads in the district, according to Neiman.

Neiman said the state gaming property tax reduction for 2025 for the district is $2,554,849, an increase of $331,934 from 2024.

School districts are required by state law to approve budgets by June 30.

“Nothing has really changed in the budget,” NASD Superintendent of Schools Joseph S. Kovalchik said at the June 16 meeting before the final budget vote. “We have not received any (updated budget allocations) information from the state and don’t expect to until August, nor have we received (updated budget) information from the federal government.”

Kovalchik and Neiman do not anticipate windfalls from the Pennsylvania budget education allocation.

In his 2025-26 budget proposal Feb. 4, Gov. Josh Shapiro said basic education funding would increase $75 million and special education funding would increase $40 million.

At the Jan. 13 board meeting when the budget was unveiled, the deficit was $6.2 million, based on expenditures of $142.8 million and revenue of $136.6 million.

As of the March 10 board meeting, the deficit was $3,704,155.

The administration had NASD 2025-26 budget reductions of $3,140,560 and increases of $638,451.

Budget reductions of $3,140,560 include personnel reductions and reassignments of $1,260,697. There are no furloughs or layoffs. The reductions are achieved by not filling certain positions for some who retired and leaving the positions open, according to Kovalchik.

Other reductions include Moore Elementary School summer 2028 opening of $900,910; Bethlehem Area Vocational-Technical School funding, including The Factory, of $553,953; staff computer replacements of $150,000; adjust districtwide temperature set point at $100,000; eliminate substitute custodians at $75,000; reduce district library instructional materials by $50,000; and reduce building budgets by $50,000.

Budget increases include the capital budget line item at $500,000; Northampton Community College budget at $85,451; and Colonial Intermediate Unit 20 costs at $53,000.

The June 16 budget vote included approval of the Act 511 Local Tax Enabling Act — per capita tax: $5; real estate transfer tax: 0.5%; earned income tax: 0.7%; and of Section 670 Pennsylvania School Code, confirming the per capita tax $5. These amounts and percentages are unchanged.

School directors voted 9-0 to approve cafeteria prices for the 2025-26 school year, including student breakfast, no charge; elementary student lunch, $2.90; secondary student lunch, $3.10; elementary student lunch entree only, $2.80; secondary student lunch entree only, $3; student milk, $0.85; adult breakfast, $3; adult lunch, $4.50; adult lunch entree only, $3.25 to $6.

The free student breakfasts are funded by the state. The lunch costs reflect an increase of $0.10.

School directors voted 8-1 to approve 2025-26 athletic contest ticket prices for the 2025-26 school year. These costs are $3 for students, $5 for adults and free for senior citizens ages 62 and older.

School directors voted 9-0 to approve authorization of the administration to pay final invoices applicable to the 2024-25 fiscal year and to make necessary budget transfers to close the fiscal year in conjunction with Gorman and Associates, district auditor.

School directors voted 9-0 to approve the tax assessment appeal for 7345 Airport Road, the settlement stipulation and PILOT agreement for property owner: RAR 2 — Airport Road Bath LLC.

The settlement of the real estate tax assessment appeal was filed in the Court of Common Pleas of Northampton County by NASD against RAR 2 — Airport Road Bath LLC, 7345 Airport Road, East Allen Township, pursuant to PILOT agreement and settlement stipulations. The school board approved and authorized NASD Solicitor Raymond P. Wendolowski to execute the PILOT agreement and settlement stipulation on behalf of NASD.

The PILOT payment for back taxes is $1.1 million, according to Neiman. NASD will be paid $500,000 more per year in taxes, from $300,000 to $800,000, Neiman said. The amounts are included in the 2025-26 budget.

The board of education is next scheduled to meet 6:30 p.m. July 14 in the Northampton Area High School auditorium, 1619 Laubach Ave.