As schools across Sussex County reach or exceed capacity, county officials are once again weighing the possibility of creating a school impact fee to fund new construction. 

The discussion is set to begin Tuesday, May 13th, as part of Councilman Steve McCarron’s push to address the consequences of the region’s rapid housing growth.

While districts like Cape Henlopen grapple with increasing enrollment, the council initially opposed a voluntary school assessment (VSA) in early 2024. 

This assessment, where developers would pay a fee per unit built, was proposed as a way to offset school expansion costs tied to residential development. 

However, concerns were raised about the potential impact on housing affordability, particularly for low and middle-income families.

Growing Pains from Housing Boom

McCarron noted that while school crowding has long been an issue, now is the time to take meaningful steps. 

One solution under consideration is a voluntary school assessment, though some options may require state-level approval.

Supporters of the VSA, including State Senator Russ Huxtable and Milford School District officials, argue that the fees would be lower than estimated and serve as a proactive measure to avoid future tax increases. 

They also emphasize that Sussex County is the only one in Delaware without a similar mechanism in place. 

As the county grapples with balancing growth and financial responsibility, the possibility of reconsidering the VSA remains on the table.

Key points:

• A decision requiring state approval must be made before the General Assembly recesses on June 30th
• A local option could avoid the legislative timeline
• A similar measure failed to gain support in January 2024

Divided Opinions on Responsibility

Council members expressed mixed views. 

Vice President John Rieley voiced concern that county involvement in school funding could set a precedent and shift more financial burdens from the state to local government.

However, Councilwoman Jane Gruenebaum supported exploring new funding methods. “You’d have to start to look at doing some things differently in order to achieve our objective,” she said.

Councilman Matt Lloyd added that a school fee might serve as a deterrent to unchecked development in rural areas, noting that newcomers should share in the cost of expanding school infrastructure.

Calls for Immediate Action

Jason Hale of Cape Henlopen School District emphasized the urgency. 

Since 2010, student enrollment has jumped from 4,634 to 6,645, stretching schools beyond capacity. 

He argued that impact fees would relieve pressure on taxpayers by reducing the need for local tax hikes.

Other counties in the state that are north of us, like New Castle and Kent County, already charge per-unit school fees for large developments. 

Cape Henlopen has even urged Sussex County to pause housing approvals until a similar fee is in place.

As the debate unfolds, the future of school funding in Sussex County may be poised for change. 

Stay informed and share your thoughts by following our blog on all things Coastal Delaware! 

Source: Cape Gazette, TV Delmarva, Delaware Public Media