When writing a story that involves complex numbers, it takes some extra work to get it right.

That was the case for me after Wednesday’s work session of the Hamilton Southeastern School Board.

I came home with a mountain of numbers, charts and data to sort through, all tied to the complicated way Indiana funds its local school districts. My challenge was to write a story that could be understood by readers who do not spend their evenings digging through school finance presentations.

I did the best I could.

Now that I have had a few more days to digest what was presented, here is another look at where things stand.

Wednesday’s meeting was a work session, meaning no votes were taken. But a very involved issue was reviewed by HSE administrators and a consultant hired by the district. The subject was a likely new HSE operating referendum, which now appears headed for the Nov. 3 general election ballot, assuming the board takes formal action next month.

The reason this is coming up now is Senate Enrolled Act 1, approved by state lawmakers during the 2025 legislative session. The law made major changes to Indiana’s property tax system, and HSE officials say those changes will have a significant impact on the amount of money the district can collect under its existing referendum.

HSE voters approved the current operating referendum in 2023, with collections beginning in 2024. That referendum was approved by about 70 percent of voters and was expected to run through 2031.

The current referendum rate is .1995 per $100 of assessed property valuation. At the time voters approved that rate, the rules for calculating property values and homeowner deductions were known.

The 2025 action by state lawmakers changed the picture. Over a five-year period, additional homeowner deductions will be phased in, reducing the taxable assessed value available to local units of government, including school districts.

That matters because if HSE keeps the current .1995 referendum rate through 2031, the district projects it will collect much less money than anticipated when voters approved the referendum in 2023.

The operating referendum is used primarily to support teacher salaries and benefits. If the money generated by that rate declines, district officials say it could affect staffing levels, class sizes and HSE’s ability to attract and retain teachers while competing with other districts in the area.

HSE Chief Financial Officer Tim Brown and Matt Parkinson of Policy Analytics, the district’s consultant, laid out what the state tax changes mean for the district. The proposal under consideration would place a question on the Nov. 3 ballot listing a maximum referendum rate of 36 cents per $100 of assessed valuation, after allowable deductions.

Brown emphasized that the district must list the highest possible rate it may need over the eight-year life of the referendum. HSE could not exceed that 36-cent limit if voters approve the measure. But Brown also said he expects the actual rate to be lower.

The school board would vote each year on the actual rate to be used, as part of the district’s annual budget process.

For 2027, Brown is proposing a rate of .2275 per $100 of assessed valuation, assuming the board votes to place the item on the ballot and voters approve November 3. While that is higher than the current .1995 rate, district officials say it would still generate less revenue than HSE would have received under the old property tax structure, before the Legislature changed the rules.

That is one of the more confusing parts of this issue. The tax rate may go up, but because more assessed value is being deducted from the tax base, the district says the amount of money collected may still be less than originally expected.

Brown’s projections show that even with higher rates over the life of a new referendum, HSE would collect somewhat less money than it would have collected had the state not made the property tax changes approved in 2025, but would provide sufficient funding for HSE staffing.

The presentation also showed how the ballot language could appear to voters. Because state law requires the ballot question to use the maximum possible rate, the ballot would show the impact of the full 36-cent rate. For a median HSE residence, rounded up under state rules to $400,000 in assessed value, that would show an annual property tax bill increase of about $700.

District officials stressed that this does not mean the district expects to collect the full 36-cent rate in 2027. The 2027 rate would be set separately by the school board during the budget process.

The board is expected to decide at its June 10 regular meeting whether to place the new referendum proposal on the Nov. 3 ballot. If the board votes to move forward, a political action committee would likely be formed to advocate for passage of the referendum.

I have already seen some social media posts indicating that at least a few people plan to oppose the new referendum. If the school board places the question on the ballot, I expect the debate to be a spirited one in the months leading up to Election Day.

For now, the next key date is June 10, when the board is scheduled to consider the referendum resolution.

I plan to keep an eye on this issue and report on developments as they happen.