Kokomo School Corporation’s referendum that will be on the November ballot is likely the first since at least 2010, if not ever.
Kokomo school officials hope city residents will vote favorably as it eyes salary increases for staff, improving elementary literacy programs and increasing high school offerings with the proposed property tax increased.
If approved, the referendum would net Kokomo schools about $6.16 million in additional revenue each year for eight years, which is the maximum. The new taxy levy would collect 26 cents per $100 in assessed valuation.
Most of those funds are earmarked for teacher and staff salaries. Superintendent Mike Sargent told the Tribune on Monday the tax proposal came about through community conversations and looking at communities with school referendums.
“When you compare us with communities that do have a referendum, we’re not competitive,” he said.
More competitive salaries aim to attract and keep staff, and not just teachers, though they make up about half of the school corporation’s 800 employees.
“This would impact all of our employees,” Sargent.
Additional tax revenue would also be spent on elementary literacy programs and high school offerings.
Indiana schools are required to teach curriculum aligned with science of reading starting this school year. The science of reading is a collection of research that explains how people learn to read and write. Literacy rates have been a focus of the Indiana Legislature and Indiana Department of Education since the pandemic.
More funding could serve as a boost to the newly implemented programming.
Expanding dual credit offerings for high school students, as well as career and technical options, are part of the plan, too.
Kokomo High School students earned more than 3,600 dual credits (which count for both high school and college credit).
“This will allow us to provide a lot more opportunities and options,” Sargent said. “That’s been a real board focus. We don’t want to limit student opportunities.”
The superintendent said if the referendum passes, it could lead to more Kokomo Area Career Center offerings, depending on student interest.
The career center will launch a new program this year, smart manufacturing, meant to align with the new electric vehicle battery plants. Students who complete the three-year program are guaranteed a job with Samsung SDI. The classes are taught in conjunction with Ivy Tech Community College Kokomo.
“Our desire is to keep local talent local,” Sargent said.
As this is an operating referendum, funds cannot be spent on building projects, paying utilities or purchasing buses.
A proposal to increase property taxes could be an uphill battle for Kokomo schools.
A 2021 legislative change to referendum language requires the average tax rate increases for residences and businesses be listed. For the Kokomo referendum, the ballot question lists those average increases as 31% and 24%, respectively.
Those might seem like stark increases, which can lead to some confusion and has been the source of criticism from school officials.
Trent McCormick, superintendent of Blue River Valley Schools, told WFYI earlier this year the wording makes voters think they’ll pay a lot more in taxes.
“The question is convoluted, long, and quite honestly, it’s designed to scare the taxpayers,” he said. “It’s disingenuous.”
Blue River’s referendum failed in May.
“This is probably our biggest challenge,” Sargent said of the ballot wording. “As a school corporation, we’re going to communicate with facts.”
The averages only apply to the amount of property taxes paid to a school — a lesser amount — not the entirety of property taxes paid.
Kokomo schools has a property tax calculator on its website where residents can enter their assessed value to see how much more they would pay in taxes.
The calculator can be accessed by going to the school’s website, clicking “School Board” then “Referendum.”
For a home with an assessed value of $150,000, the referendum would mean a property owner would pay $165.75 more per year. Put another way, that’s $13.81 per month.
“I think they’re going to be surprised …,” Sargent said. “It’s not as high as other communities have done. I hope we are in the realm of acceptability of the community.”
Property taxes approved through a referendum are not subject to the 1% property tax caps, meaning some could have a tax bill that exceeds the cap.
Sargent said there is no risk of staff reduction or funding cuts if the referendum does not pass.
“If the community doesn’t approve it, we’re going to continue doing what we’ve been doing the last three to four years,” he said. ‘It’s not about reduction.”
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