Educational Services

A Perfect Storm

In our most recent survey of member concerns, the TPA was told quite clearly that School Taxes were at the top of the list --not a big surprise since education is usually the largest draw on any municipal tax base.

In order to better understand this issue and further the public discussion on how it ought to be addressed, the TPA has collected and analyzed data and other information related to the operation and funding of our schools. Some of our findings are a bit surprising if not troubling.

Consider this:

Last year, Cape May taxpayers provided over $7,000,000 for education – more than that provided for all municipal services.

Last year, 104 Cape May students attended Lower Cape May Regional School District, whose total enrollment is 1900 –and yet Cape May taxpayers paid 32% of that district’s school budget thanks to a 30 year old formula which ignores enrollment ratios in favor of property values.

In other words, Cape May taxpayers provided $51,548 for every Cape May resident attending LCMRSD.

Last year, the Cape May Elementary enrollment was about 141 students while 104 Cape May students were in Grades 7-12 at the Regional District. Of this total of 245 K-12 enrollment, the overwhelming majority, 70% or more, are residents on federally owned and tax exempt property within Cape May.

In recognition of the burden federal facilities often have on local resources, Congress has enacted so-called “Impact Aid” legislation, intended to assist host communities, like Cape May, to meet that burden. Impact Aid received by Cape May annually falls far short of the elementary school cost burden; and in the case of LCMRSD, no Impact Aid is provided -- either to Cape May or to LCMRSD.

In other words, Cape May taxpayers directly subsidize the services enjoyed by our federal guests. This subsidy annually exceeds $5,000,000.

For 2006, State DOE reports showed that, for the Cape May Elementary School,
per/pupils costs are some of the highest in the state and student-teacher ratios the second lowest for K-6 districts – due in large part to rising costs and small enrollments.

While enrollment appears up for the current school year, for each of the past four years, Cape May Elementary School enrollment has declined. In addition, the percentage of students who entered and left during the last school year was 49.2%, about four times the State average.

For the past seven years, fund balances were spent in the Elementary School Budget in order to avoid tax increases. Balances are now running low.

What does this all mean? Well for starters, it certainly appears that taxpayers concerns are well placed, but beyond that, what is the “So What” of all of these numbers?

The answer begins, as it must, in civic responsibility. Cape May must meet two essential responsibilities reflecting the shared nature of any community:

Our statutory obligation to provide a thorough and efficient education for its children is not be taken lightly or compromised.

But so too, the fiduciary obligation to raise and spend public funds effectively and efficiently must be met. Too often with respect to school taxes, this obligation has been honored only in the breach.

Clearly, if this perfect storm of realities – small enrollments, high and rising costs, the gross inequity in the funding of LCMRSD and sustained, inadequate Federal support- continues unchanged, steady increases in the Property Tax are inevitable.

And we all run the risk of failing in both of those civic responsibilities. This is and should be unacceptable. So before we get to that point, we should all talk together about how we can calm this growing storm.

TPA has begun such an effort. We have met on several occasions with the Cape May School Board to begin this dialogue and are developing a positive and productive partnership. Together with our school officials we hope to expand these discussions to include local and state elected representatives as well as state and federal agencies, all of whom can play vital roles in addressing and resolving these concerns. Please join us in this effort.