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Funding gaps push Indiana school boards to weigh additional voter referendums

a row of yellow school buses parked in a parking lot

The Lead Off

  • Several central Indiana school districts are considering whether to place new referendums on the November ballot.
  • District leaders say funding gaps tied to state law changes are driving the need for additional voter approval.
  • Homeowners are expressing concern over rising property tax burdens and repeated funding requests.

INDIANAPOLIS, IND. (WOWO) — Multiple school districts across central Indiana are weighing whether to place new operating referendums on the November ballot as they work to address ongoing funding gaps linked to state property tax changes.

District leaders say recent legislative changes have reduced available revenue, leaving schools to rely more heavily on voter-approved referendums to maintain programs and services according to WISH TV.

Districts weigh new funding requests

Several school boards, including those in Indianapolis, Hamilton County, and surrounding communities, are reviewing financial projections and considering whether to renew or replace existing referendums before they expire.

In Indianapolis, the Indianapolis Public Education Corporation is evaluating a referendum that currently generates about $49 million in funding. That measure, approved by voters in 2018, is set to expire.

“It’s not a science, it’s an art, and we’ll get as close to the right number as we can,” said IPEC President David Harris. “But we do want to prioritize our kids, and we want to make sure they have the support that they need to be successful.”

Funding pressures across Hamilton County

In Noblesville, district officials say they have lost $41 million since 2015 due to property tax caps and warn additional losses could follow without renewed voter support.

The Hamilton Southeastern Board of School Trustees approved a resolution to place a new operating referendum on the ballot. According to district documents, the proposal includes a maximum rate of $0.36 per $100 of assessed property value over an eight-year period.

“This referendum would help sustain the district’s long-term financial outlook, and preserve the programs, services and resources that support student success,” said Tiffany Pascoe, president of the HSE Board of School Trustees.

Carmel Clay Schools is also evaluating its financial outlook as a current referendum expires. District leaders say they are working to address a reported $120 million funding gap.

“We want to continue to sustain the educational programs that we have here in Carmel,” said Superintendent Thomas Oestreich. “And they are excellent; they are outstanding. We provide a high level of opportunities for our families and students.”

Voter considerations and limits

District officials say each school system is working under individual deadlines to determine whether referendums will be placed on the November ballot.

Under current state rules, if a referendum is rejected by voters, districts must wait two years before bringing a similar measure back for consideration.

Broader funding changes driving debate

School leaders attribute the funding pressures in part to recent changes in state law, including property tax reforms under Senate Enrolled Act 1. The law includes tax credits for homeowners while also reducing some revenue streams for local school districts.

Some residents who attended public meetings expressed concern about the financial impact on homeowners.

“We are being taxed out of our homes,” said one retired Indianapolis homeowner. “I’ve been in my home for 23 years, and I’ve seen my property taxes go from $4,000 to $6,000 to $7,000 to $9,000 to $11,000 to $13,500.”

Others said districts should focus on controlling costs before seeking additional funding.

Next steps

School boards are expected to continue reviewing budget projections and hold additional public meetings in the coming weeks. Decisions on whether referendums will appear on the November ballot must be finalized ahead of local election deadlines later this summer.


The Takeaway

  • Central Indiana school districts are evaluating whether to place operating referendums on the November ballot as existing funding measures expire.
  • District leaders cite state property tax changes and revenue caps as key factors contributing to multimillion-dollar budget gaps.
  • Final decisions will be made in the coming weeks ahead of election deadlines, with voter approval required to sustain or replace local funding measures.

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