As state officials mull a projected $350 million budget shortfall, a word that drives fear in the hearts of Sussex County Council has reared its head: reassessment.

A statewide property reassessment has surfaced at meetings of the state/county finance and revenue committee, of which County Administrator Todd Lawson is a member.

The committee was established last legislative session through House Bill 285. “To date our focus has been the historic state-county cost sharing and each county’s budget framework,” Lawson said. “Our focus is now shifting to determine how the state and three counties can work together to develop a sustainable budget solution for this upcoming fiscal year and beyond.”

Reassessment is a controversial topic. The last time the county had one was 43 years ago in 1974.

Lawson said the estimated cost of a countywide reassessment of 174,000 properties would be $9 million, and completing the reassessment and the appeal process would take several years.

“The state wants this for the school districts. We are not clamoring for it,” said Councilman George Cole, R-Ocean View.

Eighty-seven percent of each county resident's annual tax bill is school district taxes. Kent and New Castle counties have not had a reassessment in more than 30 years.

Lawson said other funding sources that involve state and county funds are also under discussion including paramedic and library funding, senior tax credits and the realty transfer tax. “But the governor says he will not put the state’s problems down onto the municipalities and counties. We’ll know for sure on March 22,” Lawson said.

That’s the date Gov. John Carney will release his administration’s budget.

Lawson said Carney has also stated there is no current movement to change the 3-percent realty transfer formula of 1.5 percent for the state and 1.5 percent for the county. The tax is the main source of revenue for the county at around $20 million. Property taxes account for about $13 million.

Lawson said, to his credit, Carney is taking a serious look at how the state’s school budgets are funded.

Councilman Rob Arlett, R-Frankford, said the timing is perfect to examine school funding based on the recent Indian River School District referendum. Arlett said, based on a 20 percent increase in school population, the local share of funding in the district has increased $7 million since 2008 while the state portion has decreased $7 million. “How can that happen? We never get an answer,” Arlett said.

Just in case, Cole asked county attorney Everett Moore to investigate other options to reassess that would be fair and equitable and less costly. “We need to look beyond our horizons,” he said.