It would appear the Hamilton Southeastern (HSE) School Board is set to act Monday night (1/25) on a tax referendum on the May 3rd primary election ballot.  Per a posting on the HSE Schools Web site, school administrators are prepared to ask the board for approval of a property tax hike in that referendum.

School referendums for operating expenses expire after 7 years, per Indiana state law.  The current referendum rate, enacted in 2008, adds 10 cents per $100 of assessed property valuation to property taxes paid in the HSE School District.  The proposal from the school staff would request 12.75 cents be added to the current 10 cent additional rate approved in the last referendum.

How this would impact individual taxpayers is a complicated question.  Homeowners are allowed deductions from their tax bills.  Also, the property tax caps impact different property owners in different ways, depending on whether that homeowner is at or below the cap amount.

The Web site posting indicates class size is the number one reason to request the additional money from taxpayers.   Below you will see how Grades K-6 would be impacted if the referendum is passed:

It is not clear whether the school corporation would need additional building projects to realize the class size reductions, but this referendum would be aimed at increasing teaching staff levels.

The second reason for the tax increase request is to “Attract and Retain a Quality Teaching Staff.”  Administrators say teaching salaries at HSE are in the bottom third of area school systems, citing 2 science teachers that recently left HSE for a $10,000 increase in pay.

The third reason listed by HSE for the referendum amount is to “Prepare Students for Global Competition.”  Several programs are listed here, including entrepreneurship and foreign language classes.

The Indiana General Assembly did approve additional money for HSE schools in the current 2-year state budget cycle.  That has clearly helped.  But to reach the goals of lower class sizes, attracting and retaining staff and preparing students for the world we see today, school officials are saying the additional money is needed.

This referendum campaign should be an interesting one.  In the past, local voters have approved school referendums by a healthy margin.  However, it appears there will be organized opposition to this referendum, which has not been the case in previous plebiscites.  A Political Action Committee (PAC) advocating for passage of the referendum has already been created.

If, as expected, the school board approves the administration’s request, the school funding referendum will appear on the ballot in May.  Let’s see how the campaign unfolds.