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Cape May Paying $50K Per Student to Regional School District

Government | Wed, 01/04/2012 - 4:11 am | Updated 19 weeks 6 days ago | Read 2925 | Commented 18 | Emailed 2

By Jack Fichter

CAPE MAY — Taxpayers here pay $50,000 per year for each student sent to the Lower Cape May Regional High School District, a total of $6 million per year.

City Councils here have been trying to find a solution to the regional school funding formula for more than two decades.The issue surfaced at a Tue., Jan. 3 council meeting.

Deputy Mayor Jack Wichterman said Cape May was paying $6 million to send 120 kids to the regional school district. He said most of the students were from Coast Guard and Section 8 housing which paid “no tax whatsoever."
He asked for a motion of council to authorize Mayor Edward J. Mahaney Jr. to contact Sen. Jeff Van Drew (D-1st) “to try to make some common sense out of this in Trenton.”
Wichterman said a very small percentage of the 120 students were from taxpaying homes.

“I’ve been talking about this since the year 2000,” he said. “It is so inequitable what’s happening to us.”

Wichterman said the $50,000 per student fee could send each student to Princeton.

“We have no say in the formula that’s utilized to determine how much money we pay to that school district,” he said. “There are several formulas that can be used and the one that the Lower Township members of that school board chose to use is the one that penalizes the City of Cape May because our real estate values are so much higher than they are in Lower Township.”

There are six different funding formulas that can be utilized, said Wichterman. He said he was not sure how Van Drew could help Cape May.

Wichterman said there must be some solution to Cape May bearing one-third the cost of operating the regional school district. He said in the mid 1950s, when Cape May voted to join the regional school district, the funding formula was based on the number of students sent to the school from the city.

Wichterman said in 1974, the state Legislature, with no further input from municipalities, allowed other funding formulas to be utilized. He said Cape May had no chance to vote on remaining in the regional school district.
In the 70’s, Cape May’s shrinking population meant fewer children were being sent to the district, he said.

City Solicitor Tony Monzo said legislation was proposed when then Sen. Nicolas Asselta was in office, which would provide relief to certain municipalities they fit certain criteria. He said the relief would have come from the state budget and would not have impacted other municipalities.
Wichterman said the legislation would have offered up to $2 million to a municipality to offset an inequity. He said the bill never went anywhere because Asselta chose not to bring it to the floor for a vote.

The city also offered a legal challenge through special counsel, said Monzo.

Mahaney said he would provide background information to Van Drew. The mayor said the issue had a long history with many unsuccessful attempts to dissolve the district dating back to the early 1990s.

In 2005, the city hired attorney Vito Gagliardi Jr. to begin a study on how to leave the regional school district. The city was paying $38,000 for each student sent to the district in that year. Earlier in the decade, the unsuccessfully tried to change the funding formula.

Cape May would have continued to send students to the Richard M. Teitelman School and Lower Cape May Regional High School but on a tuition basis which could have been as low as $8,000 per student.

By December 2005, City Council was working towards bringing about a voter referendum in Cape May, West Cape May and Lower Township. Council acknowledged such a referendum would be defeated in Lower Township which had a population of over 20,000 residents but a lawsuit would follow.

In January 2006, neither the West Cape May Board of Education or West Cape May Commission voted to support a voter referendum thus derailing Cape May’s hopes for a voter referendum.

Print | Email Updated 19 weeks 6 days ago

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Tue, 04/24/2012 - 2:51am - Posted by: jemmi12

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Thu, 01/05/2012 - 12:22am - Posted by: capemayal@gmail.com

Smily2248 - You did bring to light something that wasn't mentioned before - off base housing. I'm sure it's true they pay rent or mortgages, and taxes are indeed part of those fees. But, their rent, to my knowledge, is subsized by the govenment, I think depending on the rank. So, in effect, we're still paying, but it's spread over the entire U.S. population through our taxes. But, regardless, I can't under 50k per student. Is the article incorrect? More than likely, yes. Unfortuneatly, the Herald is good for providing incomplete or incorrect information, so it's safe to guess that the article's information is incorrect.

Wed, 01/04/2012 - 9:12pm - Posted by: valued_opinion

Is the information given in the article correct? If so,shame on everyone responsible for the costs of education not being EQUAL for EVERY child attending! Is this an example of fairness and equality we are to send to children?

Wed, 01/04/2012 - 8:43pm - Posted by: smily2248

Wow, either I am miss informed or there is some valuable information missing. The U.S. Government does subsdise for each student attending Lower & Cape may schools. There are also a lot of students that are dependents of military members who actually own or rent a place in Cape May surronding areas. Taxs are indeed paid there. And last but not least, how does - show figures that explain 50K per year per student. It cost less to house an inmate that we pay for room / board and medical.

Wed, 01/04/2012 - 6:19pm - Posted by: capemayal@gmail.com

barracuda - I agree with you. I live over by the Walmart, and I'm just shocked at the cost of 50k. Sure, it's Cape May, and I'm sure that most of the people who live there are financially well off. But, that doesn't mean the 50K is equitable. I don't know the cost of education in Lower for a Lower resident. But, I doubt that it even rises to much above 10k. I do think the 8k is low, but with all the mandates, I'm sure it's a bit higher - but 50k - that's absurd.

Wed, 01/04/2012 - 5:07pm - Posted by: barracuda

Please show me where you get the figure of Lower Twp. only paying $8000.00 per student, because I can't remember when I ever paid an amount as low as that. The second thing is, you prove the point of what is wrong with NJ school funding and "home rule". My students...your students, decided by what? The sign that says you are now entering the City of Cape May. Why don't you just erect a sign that says families with children are not welcome? That at least would be honest and show your motivation. Young adults have children. Children are expensive to educate. You (barrier islands) have priced young families out of your housing market and they can only afford to live in the cheaper housing on the mainland. Your student population is continuously falling, ours is stable. You don't feel any obligation to the education of all our children in Cape May County and you would like the tax break for exclusionary house prices. Is that about right? I on the other hand feel an obligation to educate all children in NJ equally, no matter where they live or how much money their parents earn. Our children, truly are our future and given the proper education each child, regardless of social hierarchy, has a limitless potential to achieve greatness. NJ needs to change it's process for funding schools, in my opinion.

Wed, 01/04/2012 - 4:11pm - Posted by: CMguard

Look I hate tax loopholes as much as the next guy, but paying 12k per student doesn't seem like much of a loophole...it seems like a fair deal.

And yes, vets "including military retirees and military dependents" will be allowed to shop there. Next they will close the CM Acme and no one will see a connection to this.

http://hwww.capemayherald.com/article/coast+guard/cape+may/78807-coast+guard+holds+meeting+about+new+marketplace

Wed, 01/04/2012 - 2:53pm - Posted by: BPA

Now they are apparently building this "Kmart" type store on the base, and allowing vets to shop there? .....Are you sure veterans will be allowed to shop there? Just wondering.

Wed, 01/04/2012 - 2:44pm - Posted by: capemayal@gmail.com

Yeah, but come on, 50k each! Just because property values are high in CM doesn't mean it costs more to educate a CM student than a Lower student. It should be based on the cost to educate a child, not the property value. If the average cost per child in Lower is 8k, then 8k it should be. And, Section 8 payors (Gov't) should pay the same rate, either in dollars, services, supplies, etc, and the same for the base. Today's economy is blind - it is what it is. 50K, just because property values are higher in CM is no reason for Lower to make a 42k profit on each child. Sounds like the oil companies are running their school board - and we know what their profits are like these days!

Wed, 01/04/2012 - 2:23pm - Posted by: villainesta

Cape May Point may be a sending district, but they are a School District WITHOUT a school. Time to close that loophole and play fair. If Cape May pays according to it assessed valuation, what kick do they have coming. Let them build their own High School and then see what it costs.

Wed, 01/04/2012 - 1:02pm - Posted by: CMguard

Cape May should look at what Cape May Point does. Cape May Point is a "sending district," which can be seen here: http://www.nj.gov/education/choice/send/. I believe they pay around 10k-12k per student.

Wed, 01/04/2012 - 12:44pm - Posted by: CMguard

I think the point is that they pay $50k per student and thats a completely valid point. If they pay $6 million and send 120 students that equals $50k per student. Pretty amazing, Cape May should just send students to Cape Trinity/ Wildwood Catholic for literally close to 14x less than the current price. Also, I believe that the city of Cape May/ the Chamber should be reining in the Coast Guard Base. Now they are apparently building this "Kmart" type store on the base, and allowing vets to shop there? Cape May has done a lot for the base, and the base has done a lot for CM, but this is not fair to local business.

Wed, 01/04/2012 - 11:04am - Posted by: barracuda

Did you just make up that $8000.00 per student figure Lower supposedly pays, shortii? Because I never paid $8000.00 per student and Cape May doesn't pay $50,000.00 per student either. That's not the way it works. If taxes were "per thing", then I could build a Multi-million dollar palace next to your 2 bedroom cottage and we would pay the same "per house" tax. Taxes just don't work that way....you pay according to your properties assessed value.

Wed, 01/04/2012 - 10:58am - Posted by: waynemaz

This has been going on for years, ever since "Cape May"wanted regionalization because they were paying more for schools and educating "township" kids in Cape May High. The reason for the cost has nothing to do with student numbers, only property values. The values are so high in Cape May families can no longer afford to buy homes there. Their values are 2 to 3 times the value of comparable Township homes. I'm sure when they sell, the Cape May folks appreciate the higher values and take the money and run. The real people who could have a beef is the "south of the canal" people, their homes are close to Cape May values and they pay the higher Township rate, but to their credit they do not whine and complain like the Cape May folks so buck up and be part of the whole community. This argument is getting real old.

Wed, 01/04/2012 - 10:02am - Posted by: capemayal@gmail.com

I've never heard of 50k per student. Sounds like something is afoul here. For 50k the school should oopen, or re-open, their own schools. The Coast Guard should also being paying the 50k per student, especially since they're not paying real real estate or school taxes. Govt school mandates are not subsidized, so why should the CG get a free ride? Cape May should also be supplied a full acounting, per student, to justify the 50k. Same for section 8, if the gov't gets a free ride there, then that needs to be changed to reimburse muncipalities for the associated expenses.

Wed, 01/04/2012 - 9:53am - Posted by: cmpt

Villainesta, it's one thing to pay your fair share of school taxes and another to be taken advantage of. As a Cape May tax payer for decades, I'm tired of locals that think the out of state owners should pay whatever taxes are tossed their way. 50K for the Cape May student and 8K for the Lower Township--you call that equitable? I'm with shortii on this one.

Wed, 01/04/2012 - 7:20am - Posted by: shortii

If lower pays 8000 per student than cape may should pay 8000 per student.tuition should not be based on what your property is worth

Wed, 01/04/2012 - 7:10am - Posted by: villainesta

Whatever happened to that study that was being made to consolidate all districts in the county! Are under table deals being cut! The wealthy are always looking to weasel out of paying an equitable fair share of the costs.




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