GEORGETOWN, Del. - Sussex County Council decided not to pursue an ordinance regarding the implementation of a Voluntary School Assessment in Sussex County on Tuesday. The decision came during a discussion in which no council members spoke in favor of an ordinance, though no official vote occurred. The meeting was held in the administrative office building on the Georgetown Circle.
Councilmember Mark Schaeffer began the discussion from the dais, saying that he has always supported teachers and students and will continue to do so, however, he believes the Voluntary School Assessment is unfair.
Schaeffer pointed his finger at the state, saying the legislature is responsible for building classrooms as opposed to being a county responsibility and that the way school districts are funded has been broken for decades. He called the assessment a "debilitating tax," saying it would mostly impact middle- and low-class people, as those 55 and older could be exempt.
"People who are trying to get into a $200,000 house to buy into the American dream are going to be prohibited, but the retirees that are moving in here in droves, that are buying $700,000 McMansions, will be exempt. Nobody has yet to explain that to me," he said.
"Maybe the state legislature should fix the problem instead of kicking the can down the road and continuing to tax our citizens," he said, "and try to make the three counties in Delaware the bad guys."
Schaeffer shared that, according to math he did on the back of a napkin, the fee could range from $17,000 to $18,000 per house in the Cape Henlopen School District. His math was close- in both the Cape Henlopen and Indian River school districts, the fiscal year 2024 Voluntary School Assessment fee would be $15,655 per newly constructed residential unit, according to the Department of Education.
Council President Michael Vincent, of Seaford, said that the Voluntary School Assessment would benefit districts in eastern Sussex County more than those in the west because the majority of development is taking place along the coast. He said it was unfair to western districts that are also at or approaching capacity and shortchanges students based on where they live.
For reference, the Department of Education says VSA fees in Delmar and Laurel are $7,828. In Seaford the fee is $9,393 and in Woodbridge it is $9,785.
All Sussex County school districts are sitting above 90 percent capacity, according to the department. Seaford is at 91 percent, Cape and Delmar are at 92 percent, Indian River and Laurel are at 95 percent and Woodbridge is at 99 percent.
Council Vice President John Rieley's concern was that discussions surrounding this assessment are taking place suddenly at the same time as property reassessments, which he said is causing uncertainty regarding future taxes.
"There are a lot of questions raised with all that, not to mention the fact the state's been running billions of dollars of surpluses for several years now, and it is their responsibility to fund schools, not the county," he said in agreement with Schaeffer. "I don't understand the urgency of the state to push this onto the county at a time when they are flush with money."
Schaeffer, Vincent, Rieley and Councilmember Cynthia Green all spoke in opposition to the assessment. Councilmember Doug Hudson recused himself at the beginning of the discussion.
WHAT IS A VOLUNTARY SCHOOL ASSESSMENT?
Voluntary School Assessments became possible in Sussex County through a bill introduced by Sen. Russ Huxtable, D-Milton, in June 2023. It was passed by Gov. John Carney in September. It enables Sussex County to address the impact of residential development on school capacity by requiring developers of new major subdivisions to pay a one-time fee, or tax, for the additional impact of more students on the district. Developers have the option to donate land to the district instead.
Exemptions exist in communities where housing is predominantly for those over 55 years of age or classified as low-income. This specific code does not exempt these places from other taxes or revenue sources that support schools, according to the Department of Education.
HOW VOLUNTARY SCHOOL ASSESSMENTS WORK
If an ordinance is in place for voluntary school assessment fees, the county or local code office will inform developers of assessment requirements during the planning process. The developer would then contact the Department of Education, which would contact the local school district to communicate the location of the development and number of residences. If there is not sufficient school capacity, an assessment fee would be required. The developer and Department of Education would implement an agreement to establish the fees or transfer of ownership for a land donation.
Developers will pay the Delaware Department of Education based on a formula relating to the cost per child for the average new public school, the school district's local share percentage for major capital projects and the average number of school-aged children projected to be housed within each home.
The assessment cannot exceed 5 percent of the total cost to construct a housing unit. This does not include land and site work and is not necessarily the home's value, according to the Department of Education.
Fees are paid directly to the department upon completion of each housing unit. They are held for the specific district in which the houses are built until the district requires a transfer, but the department says it does not permanently retain any of the funds. Once transferred to the district, the money can be used for repairs, maintenance or new construction.
Though this act became law in September, it only allowed Sussex County the ability to use Voluntary School Assessments. County council chose to not move forward with doing so on Tuesday.Â
Kent and New Castle counties have been able to have Voluntary School Assessments since 2006 and 1999, respectively, however one is only in effect in New Castle at this time. There, fees in effect for fiscal year 2024 ranged from $9,002 per new residential unit in Appoquinimink to $15,655 per unit in Christina, Colonial and Red Clay school districts, according to the Department of Education.
LOCAL DISTRICTS DISAPPOINTED
Though county council's decision came this week, Sussex County school districts have been hoping and working towards the county's adoption of the Voluntary School Assessment since the fall. On Aug. 28, the Indian River School District approved a resolution requesting that Sussex County Council adopt it. Superintendent Dr. Jay Owens also drafted a letter to council members in September stating the importance of the assessment and the positive impact it could have on the school district.
"In the past decade, we have struggled with increased student enrollment and capacity issues in our schools due to population growth. This is the primary reason we are constructing a new Sussex Central High School building north of Millsboro," David Maull, spokesperson for the district, told CoastTV News. "We believe the VSA would be extremely beneficial to our efforts to provide students with the best possible learning environment."
Council President Michael Vincent cited state officials, saying the majority of new single-family housing units built in Sussex County are second homes or for retirees.
"Where are the kids that we're trying to fund?" Vincent asked. "These buyers don't have students in the public school system, yet we are asking consumers who are not contributing to the added demands on public schools to now shoulder the cost and pay an added fee."
As anyone who lives in or visits eastern Sussex County knows, a great deal of development has been taking place over the past few years. In 2023 alone, CoastTV News followed the proposals and developments of over 15 new neighborhoods. Cape Henlopen School District Superintendent Bob Fulton noted the importance of allowing his and other districts throughout Sussex County to use funds collected from the assessment to offset ongoing district construction costs due to growth and infrastructure concerns.
"We are extremely disappointed about the Voluntary School Assessment not being approved by the Sussex County Council and will continue to work and fight for the taxpayers of the Cape Henlopen School District," Fulton said.
"Most importantly, if you already live here and are not purchasing a home in a development impacted by this legislation, you can only benefit from a school district being able to offset construction costs by using these funds," he continued. "I am disheartened by this decision because our very supportive community members will not be able to benefit from Voluntary School Assessment or Impact Fees. Even more disheartening is that these funds and programs have been made available to school districts in Kent and New Castle counties for several years."
"I see this as a missed opportunity," said Fulton.
At a Jan. 25 Board of Education meeting, the Cape Henlopen School District voted unanimously to hold a referendum that will ask taxpayers to absorb the approximate $80 million needed to cover expansion costs. The district told CoastTV News that homeowners could pay about $150 more a year, though the amount is likely to decrease after the first year.
The referendum is set for March 26.