For likely the first time in Howard County history, there’s a school referendum on the ballot.
Kokomo School Corporation is asking voters to approve an operating referendum that would net the school district $6.16 million in additional revenue each year for eight years, which is the maximum. The tax levy would collect 26 cents per $100 in assessed valuation.
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 …,” Kokomo Superintendent Mike Sargent said this summer. “It’s not as high as other communities have done. I hope we are in the realm of acceptability of the community.”
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.”
The additional tax revenue is mainly eyed for salary increases for staff, along with improving elementary literacy programs and increasing high school offerings.
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.
Expanding dual credit offerings for high school students, as well as career and technical options, are part of the plan, too.
Sargent didn’t rule out more Kokomo Area Career Center offerings if the referendum passes when he spoke to the Tribune over the summer.
Kokomo schools likely faces an uphill battle in getting its referendum approved.
Not only is it a property tax increase, but the wording voters will see on the ballot might make them believe they’ll pay a lot more in taxes.
It’s due to a 2021 legislative change that 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.
The averages only apply to the amount of property taxes paid to a school — a lesser amount — not the entirety of property taxes paid.
Put another way, it’s an increase to a smaller piece of the property tax pie.
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.
As this is an operating referendum, funds cannot be spent on building projects, paying utilities or purchasing buses.
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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