Derek R. Smith, Daily Reporter

    GREENFIELD — Voters in the Eastern Hancock school district delivered a resounding “No” on the district’s tax referendum on Tuesday. 

    “Obviously, I’m disappointed with the results,” said EH Superintendent Randy Harris, “but the community has told us by their vote that we’ve got to make do with the money that we have.” 

    EH taxpayers voted against the referendum, which would have allowed property taxes to rise to bolster the school district’s general fund, by a two-to-one margin. The defeat came despite an earnest appeal by school officials and supporters. 

    Longtime Shirley resident Gary Vaughn was among those who voted against the referendum. 

    “I wasn’t able to help them,” said Vaughn, 58, after leaving his polling place Tuesday afternoon. “Things is tough, and they’re going to be tougher. Time will tell whether we made the right decisions on this.” 

    Greg Fields voted for the referendum. He said his son attended EH and that his grandson will start school there next year. 

    “It’s a good school,” said Fields, 43. “They need a few improvements, and I’d like to see it go that way rather than the other way so they can get their money.” 

    Voter turnout was unusually high in each of the district’s four townships, and polling officials cited the referendum as the reason for the higher volume. 

    Outside each polling location, “Vote Yes for EHS” supporters handed out fliers touting EH’s record of financial responsibility. 

    But referendum opponents turned out to be the faceless majority. 

    Although opponents weren’t outside the polls shaking people’s hands, they had put up homemade signs at polling places and in fields and lawns. 

    Mike McMahan, chairman of the “Vote Yes” effort, was surprised by the referendum’s margin of defeat, but admitted “it’s a pocketbook issue, and a lot of people are feeling some pain.” 

    If voters had endorsed the district’s plan, property owners would have paid an additional $400,000 beyond what they would otherwise pay in 2011. Depending on the funding situation, taxpayers might have paid that amount for an additional six years. 

    Farmers and large landowners appeared to constitute the majority of referendum opponents. 

    “There’s no doubt that a property tax increase affects large landowners more,” Harris said. “I fully understand that. It makes sense.” 

    However, now that the state controls the general fund of each Indiana school district, the referendum is the designated way for schools to get more money, he added. 

    “From a school board perspective, our hands are tied,” Harris said. “We have no option to increase income tax, sales tax.” 

    Despite the referendum setback, EH leaders have already taken steps to keep the district financially viable, Harris added. Staffing cuts that have been made were based on the referendum not passing and an additional state funding cut of 10 percent in 2011, he said.

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