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Ocean City Board adopts $51 million 2026–27 budget; tax rate set at 21.5 cents amid falling fund balance
Summary
The Ocean City Board of Education on a roll-call vote adopted a $51.0 million 2026–27 budget that raises the general‑fund tax levy by about $1.88 million and sets a school tax rate of 21.5 cents; board members heard that benefits and declining fund balance are the largest fiscal pressures and that a high‑school roof project is planned with 60% local and 40% state grant funding.
The Ocean City Board of Education adopted its 2026–27 budget on a roll‑call vote after a public hearing, approving total appropriations of roughly $51 million and a general‑fund tax levy increase of about $1.88 million. Mr. Kelly (staff member) presented the budget and said the proposed tax rate would rise to 21.5 cents, which the district said equates to roughly $71 per year on a $650,000 home.
Mr. Kelly emphasized that the district’s revenue picture was affected by the state’s 3% categorical‑aid “guardrail.” “We should have lost about $275,000 in state aid year‑over‑year because of that 3% limit. We only lost about $47,000,” Mr. Kelly said, explaining that state adjustments and guardrails limited the decrease.
The presentation identified employee benefits as the budget’s largest cost driver, with district benefit increases contributing an estimated rise approaching $1.5 million year‑over‑year. Mr. Kelly also said the district has reduced staff headcount through attrition—18 positions over two years and 12 in the current year—as it responds to declining enrollment.
On appropriations, the budget funds districtwide instructional resources, including a planned K–4 reading series (expanding through grade 5) and an EnVision math series. Out‑of‑district tuition was projected to decline by about 20% year‑over‑year, a change the administration attributed to fewer special‑education placements outside the district when in‑district services meet students’ needs.
Capital spending appears significantly lower in next year’s budget because a previously budgeted ~$4 million roofing project is recorded in the current year. Mr. Kelly told the board the roofing work that has been discussed is being funded roughly 60% from local capital reserve and 40% from a grant from the New Jersey State School Development Authority; the amount mentioned on the agenda for the roof contract was $4,985,365. A resident later asked whether that figure represented a coating or a full roof replacement; Mr. Kelly and others described options and prior work to preserve warranty while reducing cost.
Board members also questioned the district’s reserve levels and whether reserves could blunt tax increases. Mr. Kelly explained that reserves are a mix of restricted capital funds, a maintenance reserve and an excess‑surplus account constrained by law and by the district’s responsibility to preserve funds for unforeseen maintenance and emergencies.
After the public hearing—during which no members of the public spoke on the budget—the board voted to adopt the budget. The roll‑call vote recorded unanimous 'Yes' votes among participating board members listed in the meeting transcript.
The board will move forward with implementing the budget as approved; the meeting agenda also included contract and personnel items tied to the capital program and staffing that will be addressed in subsequent action items or committee follow‑up.
