While other districts face lower funding, staff cuts, O.C. remains intact
OCEAN CITY — The Ocean City Board of Education adopted its 2024-25 budget April 25 with no change in the tax rate.
Business Administrator Tim Kelley presented the spending plan, saying it is the same as presented in March and noting it was reviewed by the executive county superintendent’s office and approved with no changes.
While the total general fund is up $641,651 to $46,204,566, the tax rate will remain the same. The school tax bill for a home assessed at $650,000 will remain $1,294. The tax rate remains at $0.199 per $100 of assessed value, or $199 for each $100,000.
Although the budget is rising, the tax rate is offset by a $214 million increase in total ratables value, which is now at $12.774 billion.
The total budget is at $48.2 million with general fund appropriations at $46.2 million and special revenue at $2 million. The special revenue fund is down from $3,863,348 to reflect the loss of $1.75 million in COVID funding.
While many surrounding districts have suffered greatly under the Student Funding Reform Act of 2018, Ocean City has generally fared well and is getting an increase of $231,000, mostly from a boost in School Choice aid (up $190,844 to $3.1 million). Special education aid is rising $40,159 while transportation and security aid remain flat. Total state aid is $4,760,398.
Total revenues are up more than $600,000 to $46.2 million. The tax levy is rising from $24.6 million to $25.3 million. Tuition from sending districts is up more than $800,000, from $11.5 million to $12.3 million.
The district is raising tuition rates by $1,000 per pupil for first grade through high school for the sending districts, including Upper Township, Sea Isle City and Longport. Kindergarten tuition is rising $1,500 to $15,000 from $13,500 this year.
Tuition is going to be $17,250 for grades one to five, $18,250 for grades six to eight and $17,450 for nine to 12.
There will be no debt service in the upcoming budget, meaning the district is not paying off any debt. In 2022, the district finished the last payments on the $28.5 million bond to build the new Ocean City High School, which opened in 2004. The total project cost was $40 million, with the state kicking in $11.5 million. The annual debt payments on the high school averaged $2.25 million.
Expenses jumped substantially in a number of categories, namely employee benefits, up $1.16 million to $8.5 million, and student transportation, up just shy of $1 million to $1.6 million. Regular instruction rose over $600,000 to nearly $16.4 million.
The administration/curriculum/staff development budget fell about $453,000 to $3.6 million and capital outlay dropped from $1.33 million to $561,000.
– STORY by CRAIG D. SCHENCK/Sentinel staff
Staff writer David Nahan contributed to this report.
