Legislature delays special vote on school tax rate referendums

ANDERSON — Elwood Superintendent Thomas Austin balked Thursday at legislation that ended hopes for a July special ballot proposing a school tax, and said it may not fair as well on the November ballot because of misinterpretations.

As the Elwood Community School Corporation joins many school systems around the nation in trying to close enormous budget gaps created by a recession and education funding cuts, Austin said Thursday that the Indiana legislature threw one more curveball their way by sneaking in the addition to a bill.

“Up until this morning at 7:30, the law said schools districts could initiate a general fund referendum and have voters vote during a special ballot,” Austin said Thursday night.

According to Austin, the proposed tax rate will now appear alongside a state proposal to include a property tax cap in the Indiana constitution.

The problem, he said, is that the voter who hasn’t researched the two issues will automatically vote “yes” for the tax cap and “no” for the school tax, because they’re in the mind frame of saving money.

“So, John Q. Public is going to look at the tax cap over here and say, ‘Yeah, I want a cap,’” he said. “Then, John Q. Public is going to look at the school tax and say, ‘Well, no, I don’t want a tax.’”

State Senator Tim Lanane, D-District 25, and State Rep. Terri Austin, D-District 36, were not available Saturday for comment.

At a Thursday school board meeting where Austin also recommended closing the middle school to help with a nearly $3 million budget shortfall, consultants presented a suggested school tax rate to aid in closing the gap.

The School Operation Fund Referendum would require Elwood residents and business owners pay about $43 to $115 per year for the next seven years, depending on a tax rate ranging from 30 cents to 80 cents. The tax would levy $59,000 to $1.75 million.

Austin said, although he retires in June, he will help lead a public campaign to educate residents about what each tax referendum really means. He insisted that the school tax rate is vital to the school.