School Board to Bank $346,687 to Help 2012-13 Budget

The Ocean City Board of Education will save $346,687 in unexpected funding to help with the 2012-13 budget.

The school district learned last week that the state was providing a new round of aid to Ocean City as part of $600 million increase statewide.

Ocean City had three options in using the new money, Schools Business Administrator Tom Grossi said at a board meeting Wednesday:

1. Use the money for tax relief in the current year. 
2. Apply the money to next year's budget.
3. Flow the money into Ocean City's surplus funds.

Given that the district received guidance on the new funding only last Thursday (July 14) and that the action would require a board vote at a properly advertised meeting before a deadline of 4 p.m. Tuesday (July 19), the first option was not really feasible, Grossi said. 

"Deferring the revenue to next year gives us more flexibility," Grossi said.

He said the district anticipates less revenue in the next fiscal year, and the money could help keep the tax rate down for that year.

Gov. Chris Christie's administration announced on July 13 his plan to increase state aid to New Jersey schools. Districts across the state faced a deadline of July 19 if they wanted to reduce property tax levies. Tax rates were certified by county boards of taxation on Tuesday, and tax bills will soon be issued.

Cape May County Tax Administrator George R. Brown III said that no school district in the county opted to try to change its tax rate.