Podcast: HSE referendum, property taxes and what comes next for local schools

Hamilton Southeastern Schools voters will decide a referendum question November 3, and there are several questions worth exploring before casting a ballot. Why is the district returning to voters after passing a referendum in 2023? What would this proposal cost homeowners? What happens if voters say no?

For this podcast, I am joined by Laura Cole, chair of Advance HSE, the political action committee advocating passage; Superintendent Dr. Matt Kegley; and Assistant Superintendent for Finance Tim Brown.

Much of our conversation centers on the difference between the maximum tax rate voters would authorize and the rate school officials intend to use initially. The proposal would replace the existing operating referendum and allow a maximum rate of 36 cents per $100 of assessed value over eight years. Brown says the district plans to use a rate of 22 cents in 2027.

In the interview, Brown estimates the increase for the median homeowner at about $26 for the entire year in 2027. Individual amounts would vary. The district’s referendum information page also lists that estimate and provides a calculator for homeowners to check their own property.

Brown explains how changes in Indiana’s property tax law reduce the revenue HSE can collect under its existing referendum, even as property values grow. He also addresses why the tax impact described on the ballot differs substantially from the district’s first-year estimate.

Kegley discusses where the money would go, with teacher salaries and benefits accounting for the largest share, along with school safety and student behavioral health supports. He says the proposal is intended to sustain services the district already provides.

We also discuss the approximately $7.8 million in budget reductions district leaders describe in the interview, declining enrollment and the staffing changes already made. I ask what additional reductions might follow a referendum defeat. Kegley and Brown say programs and staffing could be affected, although they do not identify a final list of cuts.

Cole explains the work of Advance HSE, the people supporting its campaign and how she responds to residents concerned about property taxes. That includes a question facing many households in our community: Why support the referendum if you no longer have children in the schools?

This episode is sponsored by Citizens State Bank.

Listen to the full conversation at this link or the link below.