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Chicago Tribune
a day ago
- Business
- Chicago Tribune
Duneland voters to see operating referendum renewal in November
The Duneland School Board unanimously decided Thursday to place an operating referendum renewal levy before the voters on the Nov. 4 ballot. The board voted to proceed at a brief special meeting held Thursday morning. Superintendent Chip Pettit said the decision to go forward with the renewal in November was spurred by the recent property tax changes made by the Indiana legislature with Senate Bill 1. School referendum votes are now required to be voted on in November elections. The Duneland School Corporation wanted to ensure that the funding would be available for 2026 and beyond. The 8-year renewal would raise $8.9 million annually to retain funding to maintain the teacher class size, recruit and keep teachers and staff, continue essential student health and safety initiatives and to support academic programs and student services. 'It's not a new tax. It continues funding that the voters approved in 2012 and 2019, both with strong community support,' Pettit said. The current 7-year referendum's term – which raises $8.9 million annually – would expire at the end of 2026. The ballot will show that the amount to be collected with the renewal would be 39 cents per $100 in assessed valuation, which would be up from the current 22 cents per $100 in valuation. However, the new state law changes the way that property tax bills are calculated. Many homeowners will see little or no change in what they will actually pay, Pettit said. An example cited by the Duneland School Corporation is the overall property tax bill for a median value Chesterton home, $319,000, would be reduced by $40 per year. 'We're committed to being responsible stewards of taxpayer dollars,' Pettit said. Alayna Lightfoot Pol, who presided over the school board meeting because President Brandon Kroft wasn't in attendance, stated this was a decision that came after deliberation. 'We spent a lot of time looking and discussing, and I want to thank all the board members for their time and commitment,' Pol said.
Chicago Tribune
03-06-2025
- Business
- Chicago Tribune
Duneland voters may see school referendum renewal earlier because of state law change
The Duneland School Corporation might ask the voters this November to renew an operating referendum because of a change recently enacted by the state legislature. Superintendent Chip Pettit during Monday's school board meeting emphasized that he hasn't decided what he will recommend. The board will make the final decision. Duneland officials are still analyzing the potential financial impact of Senate Enrolled Act 1 on the school budget. The wide-ranging bill includes provisions that cap how much local governments and school districts can realize from an increase in property values in coming years. Voters in 2019 approved the 7-year referendum, which provided $8.8 million annually to supplement the school corporation's educational programs. The levy is currently calculated at 22 cents per $1,000 of property valuation. The funds generated make up 10% of the 2025 budget, which was $89 million. Originally, Pettit said it was likely that he was going to ask Duneland voters to renew the operating referendum in the May 2026 primary. But one of the changes with Senate Enrolled Act 1 is that school districts can no longer put an operating referendum up for a vote in a primary. Referendums now must appear on the November general election ballot. 'As a result, once specifics to how Senate Enrolled Act 1 will impact the Duneland community and school corporation (are known), I may ask the Board to consider placing the referendum on the ballot in November 2025,' Pettit said. If the renewal doesn't appear in November 2025, it would have to be on the November 2026 ballot. The Duneland School Corporation would like to know if the operating referendum is renewed because it would 'provide cost certainty for budget development in 2027 and beyond,' Pettit said. 'With our current referendum funds lasting through 2026, I believe it would be difficult to ask the Board to approve a budget in the fall of 2026, for 2027, without knowing whether referendum funding is available,' Pettit said. About half of the school corporation's budget comes from property taxes collected within the Duneland School Corporation while the state provides the remaining amount. 'We are currently working with our financial advisors to sort out the projected impact of SEA (Senate Enrolled Act) 1,' Pettit said. Pettit said one certainty is that inflation in the past few years has been significant, causing operating costs for the school corporation to increase. 'If tax revenue decreases, the budget cannot support the same or an increased level of expenses, which means that reductions and cost-cutting measures must be taken,' Pettit said. School Board President Brandon Kroft, during his presentation on the recent Indiana legislative session, noted that Senate Enrolled Act 287 eventually settled on keeping the vote for school board members to the general election. The change is that candidates for the school board can declare a political party affiliation or choose to say they are independent or make no party declaration at all. School board elections before had been non-partisan.
Chicago Tribune
21-04-2025
- Business
- Chicago Tribune
Local schools rocked by tax relief law
Some local schools could see crippling job losses and service disruptions as a result of a sweeping GOP tax reform bill that reduces residential property taxes at the expense of Indiana school districts. School officials are reacting cautiously to the new law aimed at providing tax breaks for homeowners that could lead to deep cuts that impact the classroom. The proposal was the centerpiece of new Gov. Mike Braun's legislative agenda as he advised schools 'to do more with less.' With a little more than a week left in the General Assembly's budget session, the school funding picture is still hazy while school leaders await the fallout from Wednesday's revenue forecast that projects a $2.4 billion budget shortfall. They hope they won't face more cuts. From 2026 to 2028, Indiana schools could lose an estimated $744.2 million, according to the Indiana Legislative Service Agency. Schools could lose the most — $336 million — in 2028. Schools rely on property taxes to fund transportation, utilities, maintenance, technology and school safety. Because of the impact of property tax caps in Lake County that limit tax collections, many districts turn to voters to ask for more money. This year, Hobart and Crown Point districts are holding special elections May 6 to extend their current referendums that were successful in 2017. Locally, the growing districts of Crown Point and Lake Central stand to lose the most tax revenue with Crown Point at $13.2 million and Lake Central at $12.3 million. Gary, which just left state control because of its shaky finances, was projected to lose $12.5 million. In addition, Gary could lose more revenue through a provision in the new law that calls for districts to share property tax revenue with charter schools that draw legal residents in Gary. Gary has eight charter schools and about 35% of the district's 11,764 children go to the traditional school district while the rest are dispersed across charter and private schools, as well as neighboring districts with open enrollment. In Porter County, Duneland schools could lose as much as $8.3 million. Duneland Superintendent Chip Pettit declined an immediate comment, saying there were a lot of moving parts still in play, including the state revenue forecast anticipating a $2.4 billion shortfall. Lake Central Superintendent Larry Veracco said the growth quotient in Senate Bill 1's formula was frozen for 2026 'so that regardless of the upward trend in property values, the taxes generated will be flat,' he said. His district has about 9,200 students in 10 schools, second only to the School City of Hammond. 'We have a higher assessed value, which is normally a great thing and good when there aren't parts of the formula frozen. Of course, the impact is worse for districts with more facilities to maintain.' Growing Hamilton Southeastern and Carmel Clay districts near Indianapolis were hit hard with three-year losses at $26.7 million and $25.2 million, respectively. South Bend Community Schools would lose the most at $27.4 million. Veracco said Lake Central's on sound financial footing now, but still can't control rising energy costs and other expenses. 'We will need to analyze each staff position when a retirement or resignation occurs to see if we can operate with one less person in that area.' Hobart Superintendent Peggy Buffington said local school officials were still analyzing the impact. 'There is devastating loss no matter which chart we look at. My district is already hit hard by the current property tax caps. We already lost 80% of our levy.' Property tax loss projected from 2026 to 2028* Lake County Hanover Community $6.1 million River Forest $1.6 million Merrillville $5.3 million Lake Central $12.3 million Tri-Creek $3.7 million Lake Ridge $1.8 million Crown Point $13.2 million East Chicago $2.8 million Lake Station $1.2 million Gary $12.5 million Griffith $26 million Hammond $9 million Highland $2.8 million Hobart $4.2 million Munster $7.3 million Whiting $665,900 Porter County Boone Township $1.2 million Duneland $8.3 million East Porter $1.9 million Porter Township $2.7 million Union Township $2.7 million Portage $3.3 million Valparaiso $5.7 million
