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Northwestern Lehigh board gives staff guidance to prepare final budget using a 3.5% tax-rate scenario
Summary
At its May 14, 2025 meeting the Northwestern Lehigh School District board heard updated revenue and expense figures, noted roughly $149,600 in fuel-bid savings and directed staff to prepare the final 2025‑26 budget based on a 3.5% tax-rate increase, with a formal vote set for next month.
At its May 14 meeting the Northwestern Lehigh School District board of school directors directed staff to prepare the district's final 2025-26 budget assuming a 3.5% tax-rate increase, after finance staff presented recent cost reductions and updated shortfall estimates.
The guidance came after a finance update that identified roughly $149,600 in savings from a recent fuel bid and insurance premium changes, which reduced projected expenditures to about $55,204,399. Board members discussed three scenarios presented by staff: a 4% tax-rate (which would eliminate additional fund-balance use), a 3% rate (which increases fund-balance use), and a 2% rate (which would require still larger withdrawals). Trustees asked staff to model intermediate options; after discussion the board instructed staff to prepare the final budget with a 3.5% increase reflected in the materials for next month's vote.
Why it matters: the board and district staff said the fuel savings and premium changes narrowed the district's shortfall but did not eliminate it. Under the presented scenarios, the district would still need to use a portion of its fund balance if it adopted a tax rate below 4%. Finance staff reported the district had approximately $19.6 million in available fund balance as of June 30, 2024 and asked trustees to weigh multi-year sustainability against near-term tax relief.
Details and context: Staff quantified the revenue effect of different tax-rate choices and the corresponding use of fund balance. Trustees emphasized balancing short-term relief for taxpayers with long-term capital and operating needs; multiple board members said they preferred returning as much of identified savings to taxpayers as practicable while retaining sufficient reserves for anticipated capital work.
Next steps: The board's 3.5% guidance is advisory; staff will prepare the formal final budget for a vote next month. The board's motion at the May 14 meeting was guidance only and did not adopt final tax rates or levy amounts.
