The Hamilton Southeastern (HSE) School Board is preparing to ask voters to approve another operating referendum during the 2026 general election. Superintendent Patrick Mapes made the recommendation at Wednesday night’s board meeting, held to review the district’s 2026 budget.
“We cannot wait, and now they’ve [the state legislature] changed the law—you can only do a referendum on a general election year, either ’26, ’28, or ’30,” Mapes told board members. “The loss that we have, we cannot continue having enough money to actually operate the school district.”
While the district’s gross assessed property valuation is expected to rise in the coming years, state lawmakers have enacted larger deductions through 2031 that reduce the net assessed valuation. Because tax revenue is based on that lower net figure, HSE will collect less money even at the same referendum tax rate.
The district’s current referendum rate is $0.1995, which will generate just under $30 million in 2026—most of it used to fund teacher salaries. Under current law, however, revenue from the referendum fund will begin to decline as the expanded deductions take effect.
Mapes also said county officials initially misapplied the new law when providing assessed valuation numbers to local governments, and corrected figures now show that HSE must seek voter approval for a new referendum in 2026.
HSE is not alone. Mapes expects other Hamilton County school districts will also place referendums on the 2026 ballot in response to the property tax changes.
“Now we’re going to have to ask for a higher rate, but we will not use that highest level of rate until the last year of the referendum,” Mapes explained. He offered an example of requesting voter approval for a 40-cent rate, while initially levying only 22 cents, then possibly 25 cents the following year, as deductions continue to increase.
“That will be a big education piece for everyone because it’s no longer just a fixed tax rate,” Mapes said.
District staff will now begin drafting a formal proposal. The school board will make the final decision on whether to place the referendum on the ballot and what rate to request.
The current referendum rate was approved by voters in 2023, when state law allowed a school referendum to be placed on the ballot in an odd-numbered election year. It went into effect in 2024.