From lowest socioeconomic status to highest, the categories are A, B, CD, DE, FG, GH, I and J.

In 1975 the State of New Jersey established a new regional school district taxing regimen based on property values instead.

This led to political conflict between the City of Cape May, which had relatively few students but pays a disproportionate share of the taxation revenue, versus Lower Township.

Cape May officials have argued that the district's funding formula based on assessed property values unfairly penalizes Cape May, which has higher property values and a smaller number of high school students as a percentage of the population than the other constituent districts, especially Lower Township; Cape May has 6% of students while its share of property taxes for the district is one third.

[12] In 2014, Degener stated that the city government of Cape May "is trying to leave the school system over what it claims are excessive costs".

[14] Schools in the district (with 2022–23 enrollment data from the National Center for Education Statistics[15]) are:[16][17] The LCMR district describes its facilities as being in Erma, with the postal address being "Cape May, New Jersey";[20] the schools are not in the Erma census-designated place.

[21] The Cape May County Herald,[22][23] and the Press of Atlantic City describe the school complex as being in Erma.

[7] The district commissioned a company in Atlantic City, New Jersey to make an official LCMR flag with one for special events.