A record number of school districts are asking voters to approve higher property tax rates this fall as recent tax reforms compound with the state’s existing property tax caps to bring financial stress to districts across Indiana.
Nearly all of the 38 school districts seeking referendums are doing so to cover operating expenses, such as transportation and teacher salaries. But the impact on taxpayers can vary based on a community’s assessed property values and whether the district already has a referendum in place.
Many districts attribute the need for a ballot question to Senate Enrolled Act 1 from 2025, which will bring property tax relief to homeowners by phasing in new property tax deductions and creating new property tax credits — changes that at one point were estimated to cost districts a collective $744 million.
But districts also face a multitude of other challenges, including rising operational costs, declining enrollment, and a competitive school choice landscape that, for the first time this year, will include private school vouchers for every family regardless of income. Districts are also now restricted in how often they can ask voters for a referendum to the November general election, which are held every even year.
Chalkbeat Indiana and WFYI have compiled a referendum guide to help you understand your district’s ballot question.
What to know about referendums at the polls
If voters in your school district have recently passed a referendum, the new ballot question is likely asking them to replace it with a higher tax rate — not charge the new rate on top of the existing one — to offset revenue the district expects to lose under property tax reform.
Yet some school districts are warning voters that the ballot question does not clearly explain that distinction.
State law requires ballot language to describe a referendum’s cost as if a district currently has none. In Westfield, for example, the ballot question lists an $873 annual increase for a $450,000 home, based on a maximum rate of $0.3941 per $100 of assessed value. But Westfield Washington Schools already collects a rate of $0.17 per $100 under a referendum voters approved in 2023.
If voters approve the measure in November, the new tax rate would replace the existing $0.17 rate rather than be added on top of it. As a result, the owner of a $450,000 home would pay closer to $494 more a year, not $873, according to the district.
Five districts are seeking a property tax increase for the first time: the Metropolitan School District of Shakamak, Mississinewa Community School Corporation, Shelbyville Central Schools, Tipton Community School Corporation, and Tri-Central Community Schools.
State law previously required that districts in four counties — Lake, Marion, Vanderburgh, and St. Joseph — share their operating referendum proceeds with charter schools enrolling students living within their boundaries. But beginning in 2028, all districts statewide must share with charter schools that enroll students within their borders.
This year, only districts in Marion and Lake counties have stated that they will share their potential revenue with charters, which is estimated at over $49 million for about 60 charter schools, according to documents districts submitted to the Department of Local Government Finance. Spending plans and amounts for charter schools were submitted by districts, although these plans may not include all of the charters eligible to receive money.
Statewide, the requested tax rates range from an extra $0.9912 per $100 of assessed value for the River Forest Community School Corporation to an additional $0.09 for the Clark-Pleasant Community School Corporation.
Search for details on your district’s ballot question below. Figures in district spending plans and charter school amounts are estimations.
The general election is on Nov. 3, and voters can register to vote, check their sample ballot, and check voting locations at https://indianavoters.in.gov/. Early voting starts on Oct. 6.
Amelia Pak-Harvey covers schools for Chalkbeat Indiana. Contact Amelia at apak-harvey@chalkbeat.org.
Eric Weddle is WFYI's education editor. Contact Eric at eweddle@wfyi.org.
