Following up on a discussion from last month, Sussex County Council discussed this Tuesday ways to raise money for county schools without burdening current area residents with referendums asking for tax increases.
County Administrator Dave Baker presented council with information on surcharges on building fees for schools already in place in Kent and New Castle counties as possible options to raise money in Sussex.
A 2 percent sales tax would be a fairer way to raise school funds, a seemingly annoyed Councilman Dale Dukes (D-1st) argued Tuesday night.
“Every time we think about raising money we put it on the homeowner,” said Dukes, adding that a 2 percent Delaware sales tax would raise $130 million annually. “I don’t support this at this point.”
Dr. Kevin Carson, Woodbridge School District superintendent and president of the Delaware Chief School Officers Association, said the association plans to lobby legislators in January’s session to approve enabling state legislation that would allow the county to approve a funding mechanism based on Kent County’s existing one. In unincorporated Kent County, a surcharge is placed on building permits.
Developers pay 1.25 percent on the first $250,000, .9375 percent on the next $250,000 and .625 percent on the next $500,000 into the fund, according to Baker. Fees on one $250,000 home in unincorporated Kent would increase $3,125.
Districts impacted because of the development can then use the funds for state-approved capital building projects, Baker said. In New Castle, Baker added, the fee is only charged to developments that officials decide directly impact schools and force them to exceed their existing capacity.
According to numbers presented Tuesday, Kent County’s program is significantly more profitable. New Castle County’s program, which was implemented in 1999, has only raised $4 million in five years. Kent County officials, who successfully lobbied for enabling state legislation last year before implementing the program, expect to raise $3 million to $4 million annually. State legislation and a county ordinance would be needed to implement such a fee in Sussex County.
“Our organization is in favor of this,” Carson said. “As a Sussex County superintendent, it seems to be unfair that schools in New Castle County and Kent County would receive a benefit (and we don’t). We’re certainly growing.”
“You already have a vehicle” for fundraising, Dukes told Carson. “It’s called a referendum. We would be the ones that would have to listen to the constituents. I think you’re a little presumptuous. You’re going to have a problem if you don’t have this council supporting you.”
However, some of Dukes’ fellow councilman supported Carson and the idea.
“I’ve always supported enabling legislation,” Councilman Vance Phillips (R-4th) said, “although it may not pass (in Sussex County).”
“It’s difficult to go to people who you have been asking (for funds) year after year,” Councilman George Cole (R-5th) said. “I think it’s time to let the new people pay.”
Dates for further discussion on the topic were not set. Sussex County officials would have to wait for related enabling legislation at the state level before they could pursue any new type of funding mechanism.