Dear voter: Help pay for education

Since 2008, when the state switched to funding schools with sales tax revenue instead of property taxes, 128 out of 389 districts have sought referendums asking for more money.

With the switch, Indiana allowed school districts to go directly to voters with referendums.

A legislative change in the state funding formula this year helped districts such as Tri-Creek School Corp. and Valparaiso Community Schools. Before that, such districts complained their per-pupil funding was less than districts with more socio-economically challenged students such as Gary and Hammond schools.

While some districts have seen referendums passed, others -- especially in areas of greater poverty -- have failed to get a referendum passed, or not even attempted to get one on a ballot.

Not so simple

Tri-Creek School Board President Douglas Ward said Tri-Creek will see an increase of more than $400,000 from the previous year. And while the school system is not looking at a referendum, it's not off the table, either, he said.

"It would have been more, but we had a drop in enrollment this year," he said. "There was a $1.1 million deficit, but we hope to erase that by the end of the year."

The district hopes to do so through attrition and retirements.  

Lowell resident Laura Clifford has six children in district, along with one who recently graduated. She is not in favor of a referendum.

Clifford  said she supports the teachers and their classroom activities and knows the district is having financial problems.  

Still, Clifford said she's not sure she could vote for a general fund referendum to bolster the operating budget.

"I don't think they are making the right choices for our students, and they are definitely not taking care of our teachers," Clifford said, referring to the New Tech method of education.  

The Tri-Creek School Board and teachers just settled the teacher's contract. Teachers did not receive a raise, but will share a $200,000 stipend, getting about $1,200 each.

Lowell parent Robin Sepko also is unsure she would support a referendum for Tri-Creek schools, similarly because of her dislike of the New Tech method. New Tech, or project-based assignments, calls for students to work together in groups across subject areas.  

"I have been a school teacher and I have home-schooled my children, and I've had them in the public school," Sepko said. "I'd like to see textbooks back, rather than the project-based learning format. I think Tri-Creek can spend its money better."

Finding support -- or not

Of 13 referendums on the ballot in Northwest Indiana since 2008, nine passed. Most recently, River Forest Community School Corp. passed a referendum in May 2015, along with Valparaiso Community Schools, which passed two referendums -- one for the general fund and one for construction -- and Hanover Community Schools.

River Forest Community School Corp. asked voters in May to approve an increase in property taxes not to exceed 42 cents per $100 of assessed valuation for the next seven years.

River Forest Superintendent Steve Disney said the district needed the money because of the loss of $1 million in state support because of declining enrollment.

Steven Kissel, of Hobart, supported River Forest's referendum and was a member of a committee to get it approved.

"The community overwhelmingly came out in support of our schools," he said.

"I remember sitting in the meetings when they talked about going forward with the referendum. People are behind the school system."

In Valparaiso, the $148 million construction referendum includes building a new elementary school; renovating seven of the eight elementary schools; building additions onto three elementary schools; renovating the high school and building a new high school pool. Work could begin in June.

The general fund referendum will raise $4.4 million per year for seven years. It will fund such items as teacher salaries, technology and mental health workers.

In May 2013, voters approved a general fund referendum for School Town of Munster, but the school system still faces a deficit of $8 million. There has been some discussion of a second referendum, but Munster schools Superintendent Jeffrey Hendrix said there are no immediate plans for requesting a referendum.

Munster's September 2015 official enrollment was 3,895 students, down 82 students from last fall, Hendrix said. In January, 50 non-certified staff were laid off, followed by teacher layoffs. Hendrix said there have not been any new layoffs, but the district did not bring back the playground aides.

During the fall, the district surveyed the community. Two questions specifically addressed the public’s opinion on raising taxes for teachers and capital projects.

Resident Kevin Cappo, who attends school board meetings, said he could support a one-year referendum, but nothing long term.

"Until the district cleans house, and the board members that did so much to destroy the district leave or are removed, I can't trust them with any amount of money, and will never support an additional referendum," Cappo said.

No plans for referendum

Duneland School Corp. Assistant Superintendent James Goetz said the district, which had a successful general fund referendum three years ago, does not need another one.

"We were able to continue our programs, and we haven't had to cut anything," he said.

He said after the seven years of the current referendum ends, the district will readdress its budget.

"I don't want to speak for other school districts, but it wouldn't surprise me if several of them were considering a referendum," Goetz said. "There is less and less money from the state."

Theresa Mayerik, chief administrator of academic affairs for School City of Hammond, said the district is facing a deficit of $2 million. She said open enrollment helped the district in the past two years, with an additional increase this school year of 50 students. Of the 13,139 students enrolled, 189 students are from outside the district.

The district is still looking at cost-cutting, she said, but there have not been discussions of a referendum.

Whiting schools Superintendent Sandy Martinez said the school system does not need to consider a referendum.

"Our big crisis happened during the tax reassessment in the early 2000s, and we put in several cost containment measures," she said. 

Those included attrition and nonresident enrollment.

Martinez said the district also has a shared services arrangement with the city of Whiting where they use the city services and, in turn, the city uses the district's cleaning staff to clean City Hall or the baseball stadium. 

However, she said the legislative change in the funding formula last year regarding the complexity index did hurt the district -- and will probably cost it $200,000. The index determines how much additional per-pupil money schools with more socio-economicaly challenged students will receive.

Traditionally, the complexity index was based on the number of students on free and reduced-cost lunch. Now, the state awards more money based on children whose families qualify for federal low-income services, foster care, food stamps or Temporary Assistance for Needy Families.

Martinez said they haven't had to make any cuts or lay off any teachers, and have a "healthy rainy day fund at about $4 million."

"All I can say is that in my 20 years of experience in Whiting, we have a very supportive community."

She said she would "have no problem allowing someone to come in and examine our books and our budget."

"We've been very conservative. ... If we communicate to the community that we're in dire straits, I'm confident the community will step up and support our schools," Martinez said.

Porter Township School Superintendent Stacey Schmidt was not superintendent when Porter Township schools pitched -- and lost -- a referendum in May 2009.

They have cut three jobs through attrition or retirement, Schmidt said.

"We are as lean as we can get, so the discussion (about a referendum) is not off the table for our district," she said.

Lake Ridge Superintendent Sharon Johnson-Shirley said the district, which has been conservative in its spending, does not need a referendum. But she said residents are not likely to approve a referendum no matter what.

"If you can't collect 100 percent of your (property) taxes, how could you possibly get a referendum passed?" She noted the property tax collection rate is about 65 percent.

The district has closed a school, reduced staff and outsourced some services.

"We are working with a limited staff and limited program, but we are still accountable to the state for everything else, including test scores, dual credit, students graduating and going to college," Johnson-Shirley said.

"Our buildings are old and we can't afford to build new facilities. We patch our buildings and try to keep the roofs from leaking. All of those are funding issues, and we're very concerned about them."