The Hammond School Board approved a nearly $133 million budget for 2026 — a spending plan that holds steady from last year, but reflects the district's uphill financial battle.
The budget approved Tuesday night by the school board sets aside $80 million for the education fund, which covers teacher salaries and classroom materials, $30 million for operations and $14.8 million for debt service to pay off long-term obligations. The capital referendum fund was allocated $8.1 million, which will be used toward the $110.6 million bond voters approved in 2017 for the construction of Hammond Central High School.
While the total spending is $412,000 higher than this year's budget, it remains well below previous years. The district's budget this year was nearly $23 million less than in 2024, when it still benefitted from the operating referendum that had generated about $15 million annually for Hammond schools before expiring at the end of 2024. A presentation of the district's four-year cash flow projections from the consulting firm Cender Dalton in May showed the education fund expected to run a nearly $3 million operating deficit next year, while the operating fund set to run out of cash by 2027.
Speaking to The Times Wednesday afternoon, Carlotta Blake-King name board president, said they are focused on maintaining student enrollment, careful spending and seeking out other revenue sources.
"We are on top of that," she said. "We have to be hopeful."
Voters in November 2023 declined to renew the operating referendum, leaving the district to continue to reshape its financial outlook and rely on fewer revenue sources. The local funding stream is drying up, forcing school officials to deal with the impact which includes less hiring flexibility and adding to instructional programs. Facility upkeep could also be impacted.
Hammond schools are set to lose nearly $8 million to tax circuit breakers, which cap residential property taxes to 1% of their assessed value. Adding to the pressure, a new tax credit included in Senate Enrolled Act 1, approved by state lawmakers earlier this year, allows homeowners to take 10%, up to a maximum of $300, off the amount billed on their home.
The total tax rate approved by the board is at nearly $1.29 per $100 of assessed value. However, the rate is expected to drop slightly once the Department of Local Government Finance finalizes the district's budget by the end of this year.
The flat budget illustrates the district's balancing act between maintaining essential classroom operations and absorbing revenue cuts due to local and state policy.
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