Voters approved a third consecutive referendum for the School Town of Speedway in 2023. Under a proposed bill in the Indiana Statehouse, Speedway would need to wait a year after its current levy ends before asking voters for a new referendum. (Eric Weddle / WFYI)
Some school districts have turned to voters repeatedly to approve or renew a local property tax referendum to increase or maintain funding for teacher pay and student academics.
But a proposed bill could add more restrictions, to the dismay of school leaders.
Senate Bill 8 would require school districts to wait at least one calendar year after an operating or safety referendum ends before asking voters to approve another increase. It also requires more financial information about the referendum to be included in the ballot question.
The bill’s author Sen. Brian Buchanan (R-Lebanon) said the bill places “guardrails” around school referendum levies.
Schools are funded by the state through a per-student formula to pay for teachers, staff and academic programs. A voter-approved increase to local property taxes is one of the only ways a district can increase general funds and ensure its stability for eight years.
There are three types of referendums to fund operations, construction and safety. The legislation targets operation and safety levies.
Safety referendums can fund school resource officers, mental health counselors, or campus security upgrades. Operating referendums go to day-to-day impacts like transportation, insurance and classroom work — sometimes filling budget gaps left by enrollment shifts. Operating referendum money cannot be used on capital or construction projects.
“The operating referendum is an essential piece of the puzzle that allows us to maintain appropriate class sizes and pursue excellence for our students,” said Brian Tomamichel, the district’s assistant superintendent for business and operations for Westfield-Washington Schools.
In 2022, 67 percent of voters approved a $67 million referendum for the district.
Westfield-Washington could stand to lose nearly $11 million in local tax funds if the bill passes with a required gap year, Tomamichel said.
“The only way for us to make up that difference – because we do not have the reserves to calculate that difference – would be roughly laying off 100 plus teachers and IA support staff members,” Tomamichel told members of the Senate’s Tax and Fiscal Policy committee.
Tomamichel said the district “would not be able to continue” with a gap year rule.
The bill would also limit when school boards could place a referendum on the local ballot.
A referendum would only be allowed during primary elections in general election years or general elections. This would prohibit referendums during municipal elections. In 2023, 18 operating referendums were on municipal election ballots across the state. That would not be allowed under Senate Bill 8.
Tomamichel said the primarily Republican city struggles to get voters to ballot boxes in November because of strong participation in primaries.
“Our primaries are actually one of the most contested races that you see in our district,” Tomamichel said. “We have to remind people that they have to vote in November.”
Chip Pettit, superintendent for Duneland Schools, said the bill requiring districts to sit out a cycle before renewing a referendum will negatively impact the district’s plans for students.
“I would understand limiting the referenda on the ballot if it requires a special election,” Pettit said. “But if the polls are open, why limit the options.”
Duneland, which is on the southern shore of Lake Michigan in northern Indiana, has passed two operating referendums since 2012. And they intend to ask voters to extend that referendum again in 2026, Pettit said he hopes
“Our taxpayers have chosen to do more than the minimum for the benefit of our students,” Pettit said. “Please do not disenfranchise that choice.”
Terry Spradlin, executive director for the Indiana School Boards Association, said the organization is against the bill. But altering ballot language – long-viewed as confusing and tedious for voters – in Senate Bill 299 could garner ISBA’s support.
“The system works and voters are empowered to make choices on the local public question for what's best for their community,” Spradlin said.
Spradlin said referendums are used sparingly. More than half of Indiana school districts have never sought a referendum, he said.
The committee is expected to bring back Senate Bill 8 for more discussion and a possible vote next month.
Rachel Fradette is the WFYI Statehouse education reporter. Contact Rachel at rfradette@wfyi.org.
