OCEAN CITY — The Ocean City School District’s proposed budget for the 2023-24 carries no tax hike.
District Business Administrator Timothy E. Kelley presented the $45.2 million budget at the March 16 Board of Education meeting. Although the tax levy rises nearly $500,000 over this year’s budget, Ocean City’s increasing ratable base will keep the tax rate flat at 0.199 per $100 of assessed valuation.
For a $500,000 home, according to Kelley, the school tax would be the same as this year at $995.
Unlike many neighboring school districts that are facing steep cuts in state aid, Ocean City aid is up almost $200,000 to $4,529,098. A major reason for both the stability in state aid and this year’s increase is that the largest portion — $2,938,609 — is in School Choice aid. In 2015 the district began aggressively pursuing School Choice that brings about 200 students from other South Jersey districts into the resort.
State aid, which also comes in the form of transportation aid ($252,189), special education aid ($1,135,230) and security aid ($203,070), amounts to 10 percent of Ocean City’s budget.
Outside the $24,608,896 to be raised through taxes – up from $24,126,369 this year – the second-largest part of Ocean City’s revenues comes from tuition as a receiving district. The resort has a sending-receiving relationship for students from Upper Township (high school only), Sea Isle City and Longport. That is separate from School Choice and is projected to be $11.5 million next year, or 25 percent of all revenue.
The district charges tuition per student to the sending districts. The state audits the tuition, which results in credits or additional charges to the sending districts.
Kelley said the current district enrollment is just less than 2,000 students but is expecting declining enrollment in the future because of fewer students from Upper Township, which has seen its enrollment drop. Upper Township sends the most students to the high school. Enrollment decline could mean a decrease of about $400,000 in combined tuition revenue and state aid in the 2024-25 school year.
Kelley noted a few years ago the district switched out of the state plan for employee health benefits, a move he called “a win.” Although the plan the district uses is rising between 8.25 and 9 percent, the state health plan rates jumped an average of 23 percent.
During public comment, Vic Staniak, representing Fairness In Taxes, called Kelley a “hero” because of the insurance switch saving the district money. He also noted the state figures have the average house in Ocean City valued at $620,000. Doing the math, that would make the average tax bill about $1,238.
The school board approved sending the proposed budget to the state and county offices for review. A public hearing is scheduled for April 27.
By DAVID NAHAN/Sentinel staff
