HSE Schools Submits $340.9 Million Budget Proposal

LarryInFishers.com

The Hamilton Southeastern (HSE) School District has submitted its proposed 2026 budget to the Indiana Department of Local Government Finance (DLGF), but district officials caution that the numbers are preliminary.

At a budget work session Wednesday night, Chief Financial Officer Tim Brown explained that the figures sent to the state are intentionally on the high side. By law, the DLGF can lower requested amounts but has no authority to raise them.

The proposed budget for 2026 across all funds totals $340.9 million, up from $326.3 million in 2025.

Enrollment Trends a Concern

State funding is tied largely to student enrollment, and current numbers show HSE’s total student population at 20,313—below the demographer’s most recent forecast. Brown highlighted an enrollment imbalance as a long-term concern: about 1,200 kindergarteners compared to 1,800 seniors.

To address declining enrollment, HSE has allowed families from outside district boundaries to apply for admission. Seventy-nine students enrolled this year through that program. Superintendent Patrick Mapes said the district plans to extend the application deadline in future years after some families expressed interest too late.

Local Revenue and Spending Pressures

Brown said he expects a small increase in the 2026 property tax rate—less than one cent. Local property taxes cover expenses such as operations, facilities, debt service, and transportation.

The district also plans to draw down cash balances to help fund the 2026 budget, a practice Brown warned is not sustainable.

Additional financial pressures include:

  • Teacher Retirement Fund: A state-mandated $600,000 contribution, which Brown described as a “curveball.”

  • Health Care Costs: An anticipated $4.4 million increase that will affect both the district and employees. Final details will be shaped through contract negotiations with the teachers’ association.

Looking for Savings

Mapes stressed that administrators are examining cost-saving measures that avoid direct impact on classrooms. He pointed to the ongoing redistricting process as one such effort. A proposed redistricting map is expected to go before the school board before the end of this year.

You can review Tim Brown’s entire presentation to the school board at this link.