A record-high number of 38 Indiana school districts are asking voters to increase property taxes this fall to cover various expenses impacted by recent changes to state law.
Chalkbeat Indiana reports this new wave of ballot referendums covers three reasons allowed by state law: operating expenses, capital needs, or security projects. Most of the districts are requesting an operating referendum that will cover expenses including transportation and curriculum.
Last year, a change in state law resulted in districts only being allowed to put referendum questions on the ballot during general elections (in even-numbered years) rather than every year.
Indiana School Board Association Executive Director Terry Spradlin said last year’s legislative changes, coupled with the state’s 2008 property tax reforms that capped property taxes for homeowners at 1% of gross assessed value, will result in school districts losing about $5 billion in tax revenue over roughly two decades.
“For the 38 districts pursuing the referendum, it’s not really for program expansions — new programs, new expenses,” said Spradlin, who expects about a dozen more districts to file ballot questions ahead of the Aug. 1 filing deadline. “It’s really to maintain status quo.”
Spradlin added that to date, only 88 of Indiana’s 290 districts have ever sought a referendum.
“It might be (that) the publicity will cause voters to say, ‘I guess this is a normal thing now,’” DeBoer said. “But it’s still the case that more than half the school districts have never tried a referendum. On the whole, it’s not that common.”
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