Hamilton Southeastern Schools voters will decide Tuesday whether to replace the district’s operating referendum. The current measure is only three years into its eight-year term. It was approved in 2023 with about 70% of the vote.
HSE is one of five Hamilton County districts with an operating referendum on the ballot, along with Carmel Clay, Noblesville, Sheridan and Westfield. Across Indiana, a record 38 public school districts put referendums totaling around $500 million on the November ballot.
Why now
District leaders say they would not be asking for a higher rate if not for Senate Enrolled Act 1, the 2025 state property tax overhaul. The law phases in larger homestead deductions. Those deductions shrink the assessed value the referendum rate applies to. HSE projects losing about $45.3 million from 2026 through 2031 without a new levy.
The same law restricted school referendums to general elections in even-numbered years. If the measure fails Tuesday, HSE’s next chance is 2028.
Where the money goes
The referendum fund is primarily used to pay teacher salaries and benefits, which account for over 97% of the 2026 budget. The ballot question lists salaries and benefits for about 275 staff members. It also lists a behavioral health contract that puts therapists in school buildings, shared school resource officer costs, a director of school safety, traffic control, after-school event security, and safety supplies.
The district has already cut nearly 60 positions this year as elementary enrollment declines.
Reading the ballot language
The question sets a maximum rate of 36 cents per $100 of assessed value and caps yearly collections at $47.5 million. State-required wording says the tax bill on a median $400,000 home “would increase by $700 per year.” That number reflects the full referendum levy at the maximum rate, not the difference from what homeowners already pay.
The current rate is 19.95 cents. Chief Financial Officer Tim Brown has recommended a 2027 rate of 22 cents. At that rate, a homeowner with a 2026 gross assessed value of $400,000 is estimated to pay approximately $26 more per year, or about $2 a month.
Under Indiana law, school districts must seek voter approval for the highest possible rate they may need during the life of the referendum. The school board would set the actual rate each year and approve an annual spending plan through the public budget process. A rate schedule presented to the board in May showed the rate climbing about 6% a year, reaching roughly 33 cents by 2034.
The case for
Superintendent Dr. Matt Kegley cites three schools with 100% IREAD proficiency, a 97.3% districtwide third-grade passing rate, and both high schools ranking in the top 5% nationally by U.S. News & World Report. He wrote in an op-ed, “There is no substitute for having talented, capable professionals in front of students every day.” Advance HSE, a political action committee, is campaigning for a yes vote.
The case against
No organized local opposition has formed against HSE’s measure. Statewide, Americans for Prosperity-Indiana is running ads against school referendums. When the group opposed a Northwest Allen County referendum last year, it said the measure “would raise property taxes on families already struggling to make ends meet” and called for sustainable reforms instead. Lt. Gov. Micah Beckwith, a Hamilton County resident, has criticized the measures. He has said districts sometimes use the threat of layoffs to pass referendums. Skeptics also point out that the ballot authorizes a ceiling well above what HSE plans to charge next year.
How to vote
Early voting ends Monday, Nov. 2, and Election Day is Tuesday, Nov. 3. Check your registration, polling place and sample ballot at IndianaVoters.in.gov. The district has about 83,000 registered voters.