Ten school districts across Indiana are asking voters to support increases to their property taxes, continue a previously approved tax levy or replace a current levy in the May 2 primary election.
Some school corporations rely on the additional funds from a local property-tax referendum to continually support teachers, staff, and academic programs. This follows the state’s significant shift in 2009 to fund schools from state revenue generated by sales taxes, individual income tax, and other taxes.
Most of the funding requests would go to paying teachers and other staff, according to the spending plans filed by each school corporation to the state. Schools also warn of the inability to retain teachers and academic programs, and even close school buildings if voters reject the question.
The small Town School of Speedway in Marion County is asking voters to continue a levy rate first approved in 2010, which would generate around $5.8 million a year. This would be the third renewal if approved. If the referendum is defeated — Superintendent Kyle Trebly said about 25 percent of the staff would be let go.
“We hope we don't have to go down that road, but we would have to make significant cuts in our staffing,” Trebley said. “Which would in turn, we would probably have to go away from our focus of neighborhood schools.”
Leaders at the School Town of Highland in Lake County are seeking their first referendum to hold off an impending fiscal deficit and hire resource officers to secure schools. In the past five years, Highland lost $5.5 million from an ongoing enrollment decline and change in state funding.
The levy would bring in nearly $4.8 million annually for eight years. If the measure fails, there will be “massive budget cuts on the table, including staff layoffs, closing a facility, and cutting educational fine arts,” the Highland district said.
The two largest referenda in this election come from Marion County: Indianapolis Public Schools is asking for a $410 million capital levy to fund improvements at nearly two dozen buildings. The bulk of MSD of Warren Township’s $88 million total operations levy would go to educator and staff salaries. Warren's referendum would replace a levy approved in 2018.
Indiana's property taxes are capped at assessed value rates based on the type of property: 1 percent for owner-occupied homes, 2 percent for other residential properties and farmland, and 3 percent for all other property. But if voters approve a local referendum, a property tax bill can exceed the cap and the extra taxes go to the local school district.
Here are the local public questions for school referenda on May 2 ballot. The totals for operation levies are based on the net assessed valuation of taxable property in the district boundary earlier this year. That value can change.
Construction
Indianapolis Public Schools, Marion County
Property tax rate: $0.2066 cents per $100 of assessed valuation.
Project total: $410,000,000
Operating Referendum
Clinton Central School Corporation, Clinton County
Property tax rate: $0.15 cents per $100 of assessed valuation for eight years.
Annual revenue: $675,000
Fremont Community Schools, Steuben County
Property tax rate: $0.1963 cents per $100 of assessed valuation for eight years.
Annual revenue: $2,932,947
MSD of Warren Township, Marion County
Property tax rate: $0.30 cents per $100 of assessed valuation for eight years.
Annual revenue: $11,036,402
School City of Mishawaka, St. Joseph County
Property tax rate: $0.2434 cents per $100 of assessed valuation for eight years.
Annual revenue: $2,700,000
School Town of Highland, Lake County
Property tax rate: $0.3204 cents per $100 of assessed valuation for eight years.
Annual revenue: $4,793,334
School Town of Munster, Lake County
Property tax rate: $0.4196 cents per $100 of assessed valuation for eight years.
Annual revenue: $8,895,000
School Town of Speedway, Marion County
Property tax rate: $0.59 cents per $100 of assessed valuation for eight years.
Annual revenue: $5,815,605
Tri-County School Corporation, Benton, Jasper, and White Counties
Property tax rate: $0.2737 cents per $100 of assessed valuation for eight years.
Annual revenue: $2,479,244
Tri-Creek School Corporation, Lake County
Property tax rate: $0.2050 cents per $100 of assessed valuation for eight years.
Annual revenue: $3,600,000
WFYI reporter Elizabeth Gabriel contributed to this story.
Contact WFYI education editor Eric Weddle at eweddle@wfyi.org or call (317) 614-0470. Follow on Twitter: @ericweddle
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