The Hamilton Southeastern (HSE) School District is navigating one of the more challenging financial stretches in its recent history — a squeeze rooted in declining enrollment, sweeping changes to Indiana property tax law, and rising costs that are straining budgets across the state.
To make sense of it all, I sat down with HSE Chief Financial Officer Tim Brown for a wide-ranging podcast conversation about where the district stands and what families can expect in the year ahead.
We covered the district’s overall financial picture, including how a drop of more than 400 students last year — and further declines projected for 2026-27 — flows directly through to the bottom line, since Indiana funds schools largely on a per-student basis. That enrollment slide is a big reason the district has moved to trim staffing, with adjustments expected to touch roughly 60 positions, about 4% of the teaching staff.
A central thread of our discussion is Senate Enrolled Act 1, the property tax overhaul state lawmakers passed in 2025. The law lowers bills for homeowners and businesses, but it does so by changing the net assessed value used to calculate property taxes — which means less money flowing to schools and local governments. The Legislative Service Agency projects Indiana’s public schools will lose roughly $744 million over three years beginning in 2026. CFO Brown walks through what that means in concrete terms for HSE.
We also talked about the district’s budget-cutting committee, which helped identify approximately $7.8 million in reductions, and the new fees coming for the 2026-2027 school year — including a proposed “consumables fee” of up to $100 per student to cover one-time-use items like workbooks, culinary-class food, and science lab materials.
Finally, we get to what may be the biggest decision facing local voters this fall: the operating referendum the HSE Board of Trustees voted to place on the November 3 general election ballot. The measure carries a maximum rate of 36 cents per $100 of net assessed value over an eight-year term, though the district plans to start lower — around 22 cents — and step it up over time. District administrators estimate the average property owner would pay roughly $37 more in 2027 than under the current referendum. The funding is aimed at teacher retention, school safety staffing, and student behavioral health services, and HSE leaders say passage would avoid teacher layoffs.
It’s a lot to unpack, and Tim Brown does it candidly. Whether you’re a parent, a taxpayer, or simply trying to understand why your property tax bill and your kids’ school budget are moving in different directions, this conversation is worth your time.
This podcast series is sponsored by Citizens State Bank.
Listen to my full conversation with HSE CFO Tim Brown at this link, or the link below.
