INDIANAPOLIS (WLKI)- A record number of Indiana public school districts will ask voters this fall to approve property tax increases or renew existing levies after new restrictions changed when schools can seek additional funding.
Thirty-eight Indiana school districts have placed referendum questions on the November ballot, with requests totaling about $500 million in annual property tax revenue, according to data from the Indiana School Boards Association.
The Indiana Capital Chronicle reported that the number of districts pursuing referendums is lower than some education advocates initially expected after changes included in Senate Enrolled Act 1 limited how often school districts can ask voters for additional property tax support.
The law, passed last year, restricts school referendums to once every two years instead of allowing districts to hold votes twice annually. Districts that chose not to pursue a referendum this year will not have another opportunity until November 2028.
The deadline for districts to certify referendum questions for the November election was Aug. 1.
The majority of school districts on the ballot are seeking operating referendums, which help cover expenses such as teacher salaries, employee benefits and classroom supplies.
Terry Spradlin, executive director of the Indiana School Boards Association, told the Indiana Capital Chronicle that 17 districts are seeking early renewal of expiring levies because they will not be able to return to voters next year.
Six of those districts have levies scheduled to expire in 2027. Others are asking voters to approve adjusted rates because property tax limitations have reduced the amount of revenue generated by existing levies. "Their current rate may not generate the same amount of levy dollars they have been receiving because of the impact of property tax controls," Spradlin said.
The School City of Whiting is the only district seeking a construction referendum this year. The district is asking voters to support a $39 million facilities project while also pursuing an operating levy.
The Wa-Nee Community School Corporation, which serves students in Elkhart and Kosciusko counties, is the only district seeking a referendum specifically for school safety improvements.
Spradlin estimated only about 10 districts are seeking a referendum for the first time, a figure below early expectations from school advocates.
He said many districts are not seeking expansion projects but are instead trying to maintain current services. "Most districts are reluctant to want to do a referendum because it's a difficult message to taxpayers," Spradlin said.
Education advocates had predicted more districts would pursue referendums after lawmakers approved property tax changes in Senate Enrolled Act 1.
The Indiana Coalition for Public Education estimates the changes will reduce public school funding by about $744 million through 2028.
A survey conducted by the coalition found many superintendents were considering options including staff reductions, delayed maintenance projects and seeking voter-approved funding.
Spradlin said districts are facing rising costs for utilities, employee benefits and other expenses while revenue growth has slowed.
"Our expenses are going up while our revenues are not," he said.
Indiana lawmakers also increased the minimum starting teacher salary from $40,000 to $45,000 last year.
Some districts have chosen alternatives instead of going to voters.
The Eminence School Corporation in Martinsville withdrew its referendum request after the school board reversed course.
The Brownsburg Community School Corporation accepted an $800,000 one-time allocation from the town council through tax increment financing rather than pursue a referendum.
The referendum debate comes as lawmakers continue discussions over state funding for public schools.
State Rep. Gregory Porter, D-Indianapolis, the top Democrat on the House Ways and Means Committee, is asking the State Board of Finance to return $98 million from the state's general fund to K-12 education.
Porter pointed to state reserves that reached nearly $4 billion at the end of June and called for a supplemental tuition distribution of about $100 per student.
"Children are our future, a future Indiana's not properly funding," Porter said in a statement.
Porter said schools should receive additional support before the next state budget cycle, pointing to districts facing budget pressures and staffing challenges.
The State Board of Finance is expected to consider its August agenda in the coming weeks.
With dozens of school funding questions appearing statewide, voters will decide in November whether local districts receive additional property tax support for operations, facilities and other priorities.