New state tax law squeezes school money; board members raise a possible referendum

What happened

A consultant told the board on February 23, 2026 that Indiana's new property tax law (Senate Enrolled Act 1) will lower the district's assessed value and keep operations fund money flat. An operating referendum, which would add a tax that voters must approve, was named as one way to make up the difference. No referendum has been proposed.

Why it matters to families

Less property tax money could mean cuts, or a vote by residents on a new school tax in the next few years.

The evidence

In the February 23, 2026 work session recording, Policy Analytics says operations fund revenue "from 25 to 26 is flatlined" and that "an operating referendum can help offset those expenditures, but it would be an additional at an additional tax rate." At the March 9 meeting a board member said a referendum may be needed "in the next one to three years". In August staff said assessed value dropped 3%.

The source