NORTHAMPTON, Pa. – The Northampton Area School District Board of Directors on Monday voted 5-4 to adopt a preliminary 2026-27 budget with a 4.2% tax increase.

Board members Jamie Marchiano, Kristen Soldridge, Joshua Harris and Zachary Kromer opposed the measure.

The $149.2 million spending plan reflects a $2.6 million reduction in salaries across the district and the elimination of roughly 30 positions, Superintendent Joseph Kovalchik said.

The move takes those salaries back to the 2022-23 salary structure, he said.

Kovalchik said the moves are “quite honestly pretty impressive for a school district to do that without furloughing…or reducing programs or cut any extracurricular activities for the kids, which includes sports, arts and clubs,” he said.

Kovalchik said the approximately 30 positions affected are administrators, instructional assistants, teachers and technology employees.

According to officials, the district’s deficit was $12.7 million. Officials said $5.2 million in reductions, $1.2 million in bond fund interest earnings and $3.5 million from the tax increase would bring the deficit to $2.8 million.

According to the administration’s presentation, the district’s estimated fund balance is $18.2 million. A $2.8 million payment to balance the budget would bring the fund balance to $15.4 million.

Officials noted the figures exclude the sale of district buildings and potential transportation savings.

Kovalchik said reductions were possible because of redistricting, the closing of the Franklin building and program changes throughout the district, as well as through attrition and increased class sizes at the secondary level.

“Any time a position comes up in the school district, we break it down and we analyze it to see if we need it,” Kovalchik said.

For instance, with retirements in the technology department and restructuring, the district was able to save $240,000 and eliminate two positions.

“We look at it globally and we try to make it work by keeping systems in place and we were able to do that,” Kovalchik said.

Certain positions cannot be eliminated because of requirements, he said.

In a related measure, the board voted 5-4 against a proposal from Board Member Marchiano to reduce Northampton Area Public Library funding from $270,000 to $135,000.

Also, on Monday, public comments raised questions about the district’s debt service. As of June 30, 2025, the district was carrying $175 million in outstanding debt and paying $13 million per year toward it. Roughly half of the payments are going toward interest, with the other half going toward principal, officials said.

“When we talk to our financial advisors, they’re comfortable with our debt level,” said District Business Administrator Craig Neiman.

The budget also provides for $2 million in capital projects, leaving an estimated capital reserve balance of $1.1 million. The balance was $3.1 million as of June 2025.

Spending includes $1 million for stadium turf field replacement and $500,000 for other 2026-27 projects. Another $500,000 is designated for the 2025-26 school year capital projects.

Additionally, the district expects to receive roughly $2.5 million in 2026 state gaming property tax reductions for homesteads and farmsteads. The program allows for property tax bills to be lowered by an estimated $198. The district has 12,804 homesteads and 76 farmsteads, according to officials.

A final budget will be adopted in June.