Northern Lehigh board favors using fund balance for one-time purchases as $1.27M gap remains

Northern Lehigh School District board members on June 17 directed administration to plan for a slate of one-time purchases paid from the district's fund balance while holding off on a final vote on the 2024-25 budget.

At a presentation of potential purchases and recurring costs, the business office listed roughly $451,139 in one-time items administrators recommended funding from savings rather than a tax increase. The list included digital marquee(s) (pricing cited at about $48,000 each, budgeted at $50,000 to allow contingency), two commercial dishwashers and a steamer, sound-system upgrades (about $54,000) and a possible stage-rigging replacement (budgeted up to $200,000).

"These items here listed as one-time purchases, we are not recommending as part of a tax adjustment, but rather truly through fund balance," the business manager said, noting staff would earmark assigned fund-balance lines to cover the expenses.

Administration also presented a set of recurring additions that would add roughly $297,560 to annual operating costs if the board chose to adopt them now. That package included a full-time ELDP (English learners) teacher and proposals to expand theater and music programming. A full-time secondary music teacher was shown in the presentation at an estimated $126,280; several board members expressed preference to phase that hire into year two to limit immediate recurring costs.

The district reported total tentative expenditures of $40,432,384 against projected revenues of $38,000,007.47, leaving a budget gap administration estimated at about $1,271,673 before any state aid that may arrive. Administration flagged an uncertain additional state allocation of roughly $470,000 as a potential offset but warned it could not be relied on when setting policy.

Board members framed the discussion around priorities. Several members urged protecting positions and expanding arts offerings because of growing student interest. Others cautioned against drawing down the fund balance too far and urged careful trimming of recurring costs.

"I would rather see it, fiscally responsible, as we look at bonds and things for the future," one board member said, arguing for modest, phased increases rather than a large tax spike.

After discussion, a majority signaled support for including the prioritized one-time purchases in staff's June 24 budget proposal to the board, with administration instructed to prepare final language for the public meeting. Board members emphasized that this direction was not a formal budget adoption vote; the board must still act at its June 24 public meeting to finalize the budget.

The administration also summarized the district's fund-balance position, reporting an anticipated year-end fund balance of about $16.9 million before the proposed draws and noting that assigned and committed reserves would be adjusted to pay for the recommended one-time investments.

Next steps: administration will return to the board on June 24 with the recommended packet of onetime purchases and any proposed language for the final budget; the board will consider formal adoption then.