Ocean City Intermediate School
The Ocean City Board of Education on Wednesday introduced a 2014-15 school budget that
calls for a 1.5 percent increase to local taxpayers.
A vote on a final school budget will be held after a public hearing on April 30.
The owner of a $500,000 home (whose property was not reassessed) will pay an extra $14.51 in school taxes this year under the current proposed budget.
That figure represents a small decrease from the tax levy proposed in a preliminary budget released last month.
Since then, the school district learned it would receive an additional $414,580 in state aid — $387,100 for the School Choice program.
The program, now in its third year, allows out-of-district students to apply to attend Ocean City schools — with the state paying Ocean City $13,825 for each student. It has allowed the district to compensate for a shrinking school population and sustain programs without increasing taxes.
The number of “Choice” students in Ocean City will increase from 166 to 194. The state had approved a five-percent increase for School Choice districts and Ocean City also received a waiver to enroll siblings of students already accepted into the program.
"What would we do with $2.6 million less in our budget?" School Business Administrator Pat Yacovelli asked on Wednesday, emphasizing the importance of the program.
Of the additional $414,580 in state aid, the district proposed to dedicate $32,600 to property tax relief. The remainder will be used for 11 different projects — from repairs to an underground sewer line at the Ocean City Intermediate School ($78,000) to new band uniforms at Ocean City High School ($55,000).
The district had held the local tax levy flat at $21,640,721 for three consecutive years, but this year’s budget increases the levy by $324,580.
As in recent years, the burden of increased taxes will not be shared equally. More than 4,500 Ocean City homes were reassessed this year as part of a multi-year program to bring assessed values in line with market values. Property owners whose homes values were changed may pay less in school taxes this year.
Because the budget falls under the 2 percent cap on tax levy increases, it is not subject to voter approval.
School taxes are just part of an overall tax bill that includes municipal taxes
and county taxes.
See budget presentation below for more detail.
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