NASD School Board Meeting 4-23-07

Thanks to Brad Moulton for sending his notes along from tonight's meeting (which I forgot about). There will also be a special meeting on Wednesday to discuss the budget, however, it appears the NASD got a bump in its anticipated revenues so many programs slated to be cut will be kept in the budget...read on.


For a quick meeting, there was quite a bit of information covered regarding the budget. Ms. Callie, Mr. Hensley absent. Usual crowd (less than 10) there.

II. No correspondence

III. Area Updates
C. Finance - Ms. Rischoff reminded everyone of the special budget meeting on Weds 4/25 at 7:00 PM in the board room.

IV. Educational Program Resolutions - Passed 7-0

V. Financial Board Resolutions - Passed 7-0
E. Approve the following Employee Benefit Trust of Eastern Pennsylvania (EBTEP) Monthly Funding Rates for the Nazareth Area School District effective July 1, 2007: (see agenda). Mr. Butz abstained from voting on this section. In discussions amongst board members, it was mentioned that he is part of the Benefit Trust (former educator).

VI. Personnel Board Resolutions - Passed 7-0
(Most of these items were the hiring of new teachers that were to replace those who retired. Ms. Bethany Justice and Ms. Brenda Hageman were in attendance and were introduced as "all star" teachers).

VII. Facilities and Operations Resolutions - Passed 7-0

VIII. Support Services Resolutions - Passed 7-0

IX. Superindent's Report
Finally, something to talk about.... A handout was passed out by the admin to board members and the press regarding the "updated" budget cuts that would be presented at the special budgetary meeting on Weds (I didn't get a copy, but I tried my best to make notes). The big item, is that Northampton County has cleared a backlog of property assessments. As a result, NASD saw an increase of revenue from assessments to the tune of 6.2% (NASD typically figures an increase of 4.2%). This represents an additional $1.2M to NASD. Consequentially, NASD has made some changes to the proposed budget cuts. The cuts/changes as things stand now (I may have missed a thing or two while writing) are:

* IT positions - still out
* Senior Citizen Tax Rebate - Back in
* Tax collector reimbursement rate - To be referred to Audit & Finance
* Tech budget - $32K back in for FirstMath and MyAccess (I think this was the $100K that was previously cut)
* MS Resource Officer - NASD wants to increase this line item an additional $60K (no cut, total cost around $100K). Dr. Lesky stated that "given everything that has happening" NASD wanted to re-address school safety.
* Staff development ($20K) - Still out
* No cuts to athletic budget (NASD previously was propsing a 5% cut)
* Transportation for extra-curricular activities (after school/late bus) - Still out
* FTs back in
* EPED positions - Reduced the $17K cut to $7K
* Substitution dollars still out
* FT Custodian - NASD has had trouble filling the 4hr/day position at LNES. NASD proposes making this position a FT with 1/2 time at LNES and the other 1/2 time at the new maintenance facility.
* MS/HS library position - back in
* FT maintenance worker - still out (reduction through attrition)
* Special Ed supervisor - in at increased rates

The subtotal of items "back in" is $529,895. $732,172 will be placed in capital reserve fund for future needs. As it stands right now, NASD will limit the tax increase next year to 4.2% with no exceptions needed or used. Dr. Lesky stated that the $732K will be a "good start" on future budgets.

Ms. Rischoff still warned of deficits to future budgets which will mean either program cuts, increasing class sizes, exceptions taken or back-end referendums.

According to estimates put forth by Dr. Lesky, next year (08-09) budget is looking at an approximate $340K deficit (after adding the $732K back in).

Mr. Maher had a few questions/comments/discussion points:

1) senior citizen tax rebate was first reported as $100K. With the threshold raised, the amount NASD could have to pay would be $185K. However, several school boards have interpreted the legislation to allow NASD to continue funding the tax rebate program at the original amount of $100K.

2) Multi-year projections: Mr. Maher wanted to know what assumptions were made in the forecasting model. Ms. Rischoff stated that the new teachers contract, the increase in funding retirement amounts and the $730K was added into her forecast models. In addition, NASD has assumed that property taxes will be raised 4.2% each year for the next five years.

3) Mr. Maher's final comment/question was whether any additional operating costs for the P-3 and 4-6 schools was considered in the budgetary forecasting. Specifically changes to cirriculum that had been discussed at earlier meetings. If I heard correctly, they were not. He then stated that we are looking at a $2.4M budget deficit in the spring before the new MS is even open and this figure is without any "likely increases" due to cirriculum changes.

X. Community Corner
I asked whether we had made up any time in the MS construction schedule. Dr. Lesky reiterated that bids were going out in May and they expected them back in June. They would be voted on during July board meetings. I then inquired about add-ons. Specifically the pool (as I remembered at one time, I was told that if costs were too exorbitant for that particular item, it could always be removed). I was informed that that was no longer an option. We will get the bids back in June. If the board decides it's too high, the board could decide to remove the pool, but the whole project would have to be re-bid. D'Huy Engineering would have to re=submit the bid packages, etc. Re-bidding would add at least an additional six weeks. Mr. Heller stated that this delay could also expose NASD to additional cost escalations (copper, etc.). In addition, Mr. Keller added that at that time, all the prices are "already on the street" and it would make rebidding more difficult.

** My note: Reading between the lines, I do not see anyway that anything gets removed from this project. Any changes will have to be rebid and this will cause us delay. We are already behind schedule and the move-in date in August 2009 is in jeopardy. Any slight cost increase will be passed on because of the reasons above. I do wonder what exorbitant actually means. Is it 5%? 10%? Remember, that 5% of nearly $60M is an extra $3M. End Note**

No other comments. Meeting adjourned 8:35 PM