Tuition tax-rate hike artificially high

Six years ago, as Cape Henlopen School District embarked on building a new high school, a referendum seeking a tax-rate increase of 45 cents was met with persistent opposition. An option to build a swimming pool, which would have added 11 cents per $100 of assessed value, making the total tax-rate increase 56 cents, was roundly defeated.

The referendum took place when property values were rising daily, the economy was humming and people who understood derivatives were keeping their thoughts to themselves. Yet for months, the Cape Region debated whether a new school was needed and why the costs were so high. This year, with unemployment persistently high and a housing market that is barely beginning to stabilize, Cape Henlopen school board quietly raised the tuition tax rate 41 cents – with almost no discussion and even less public response.

The new tax rate will pay the costs of special needs students including those enrolled in Sussex Consortium and three students who attend residential schools at district expense.

While the entire community can enjoy the new high school theater, sports facilities and library, district residents who do not have children with special needs are not likely to see how those new tax dollars are being spent.

School boards are not required to hold a referendum before raising the tuition tax rate; that rate can be adjusted annually as the number of students enrolled in special programs changes.

Because of the success of Cape’s programs, Cape residents can expect the number of students enrolled at Sussex Consortium to continue to rise, and the tuition tax rate will follow enrollment. With the highest tax base in the state, the Cape Henlopen School District is capable of absorbing the costs of educating these students.

Still, it appears the school board artificially held the tax rate steady for the past two years, as the number of special needs students was rising. Taxpayers now face a sizable increase. The tuition tax should be set annually to account for the actual expected costs; delaying tax increases until the needed increase hits 40 cents puts an unnecessarily heavy burden on homeowners.