As Hamilton Southeastern Schools officials begin making their case to the community for a new operating referendum, Chief Financial Officer Tim Brown told the school board Wednesday night he will recommend a lower referendum tax rate for 2027 than the district projected earlier this year — the result of new assessed valuation data from Hamilton County.

The county’s numbers show the assessed value of property inside HSE boundaries will come in higher than originally projected. A larger tax base means the district can raise the revenue it needs at a lower rate. Brown will recommend the board adopt a rate of 22 cents per $100 of assessed valuation for 2027, down from the 22.75 cents he outlined this spring.

For a home valued at $400,000, the practical difference is modest but real. Under the earlier recommendation, that homeowner would have seen an annual property tax increase of about $37. Under the new recommendation, the increase drops to roughly $26 a year — a little more than $2 a month.

Why HSE is asking

HSE is one of roughly 40 to 50 Indiana school districts expected to put a referendum question before voters this fall, including Hamilton County neighbors Carmel, Noblesville and Westfield. The common cause is Senate Enrolled Act 1, the 2025 property tax overhaul signed by Gov. Mike Braun, which phases in substantially larger homestead deductions between 2026 and 2031.

Those deductions do not change a district’s tax rate. They shrink the assessed value the rate is applied against — meaning the same rate now yields significantly less money. Consultants project HSE will collect about $45.3 million less than previously expected between 2026 and 2031.

In the past, a district could ask voters for a single rate that would bring in sufficient revenue for the life of the referendum. The new deduction regime has changed that calculation, and state law now requires the ballot to show the maximum rate a district might need across the full term. For HSE, that ballot figure is up to 36 cents per $100 of assessed valuation over eight years. District officials have consistently said they do not expect to levy the maximum in any year; the board sets the actual rate annually.

Timing matters

Under the new law, school districts set the referendum tax rate as part of the annual budget process, which must be completed by Nov. 1. The referendum, however, is on the Nov. 3 general election ballot — two days later.

That sequence means HSE will build its 2027 budget assuming the referendum passes. If voters reject it, the district’s existing rate of 19.95 cents, approved by voters in 2023, remains in place, with a significant impact on 2027 revenue and a hole the district would have to close through further reductions.

SEA 1 also narrowed when districts may ask. Referendum questions may now appear only on general election ballots in even-numbered years, so a defeat on Nov. 3 would leave HSE without another opportunity until November 2028.

Superintendent Matt Kegley and Brown are presenting the proposal to community groups through the fall. The district has posted a tax calculator and a set of frequently asked questions on its Referendum 2026 page.