Although some residents are against a tax hike and say the increase has been figured incorrectly, four local school districts are asking voters to pass a tax increase to bolster their revenue.
Gary Community School Corp., River Forest Community School Corp., Hanover Community Schools and Valparaiso Community Schools all want a tax increase. These four local districts are joining school systems in Munster, Crown Point, Hebron, Chesterton and Union Township, which already have passed referendums.
Almost every school district across the state has been experiencing budget problems. After a law was changed in 2008, the state assumed funding for each school corporation’s general fund through an increase in the sales tax. Before that, schools were supported by property taxes.
However, the recession that began in 2008 hindered sales tax revenue -- which in turn reduced funding for schools.
Gary Community School Corp. is asking for a tax increase of 41 cents per $100 of assessed valuation for a total of $51.8 million over seven years. The referendum is designed to help the general fund, or operating budget, which mostly pays for salaries and benefits and some programs.
The Gary school district has a $23.7 million deficit, and Gary Superintendent Cheryl Pruitt has said it doesn't have the money to repair its buildings, pay its vendors or finance new programs. Last year, the district closed five school buildings and reduced staff.
The Indiana Department of Education also labeled the Gary Community School Corp. an "at-risk" district, appointing a representative from its own department to oversee the district's federal dollars.
Pruitt has said more than 51 percent of students are living below the poverty line, and 81 percent of students qualify for free and reduced-price lunch, which is in direct relationship with Gary having one of the highest unemployment rates in Indiana.
"There are several important reasons that people need to come out and vote," she said.
"Education is important and we are moving in a new direction. We need to make sure the opportunities and programs continue for our children. As the state legislature takes a final vote on the two-year budget, we could be looking at another decrease, about $9 million. We need to make sure that we can continue to offer high-quality programs in our schools. We have a very successful preschool program, and we want to expand that and other programs for our students."
River Forest Superintendent Steve Disney said the school district is the foundation of the community, and the state has cut the district's funds by something like $1.35 million since 2010.
"If your school district goes down, your property values go down," he said. "Our schools, our students, are the foundation for our future. The most important thing we can do is to invest in our future. We don't know what will happen when people go to their polling place, but we hope the pride in our community will come out and people will support the River Forest school community."
River Forest Community School Corp. wants a property tax increase of 42 cents per $100 of assessed valuation. Disney said someone who owns a house valued at $75,000 will pay an extra $82 a year, or $574, over seven years.
Hanover is asking voters for a tax increase of 29 cents per $100 of assessed valuation. Hanover Superintendent Tom Taylor said a resident whose home is valued at $200,000 would see a tax increase of a little under $300 per year.
Taylor has held community meetings to talk to the public and explain the increase and what it will mean for the district. Taylor also says the extra money will help to eliminate a $638,000 deficit. He said the bottom line is that Hanover is a growing district and is gaining students each year.
"We are a high-performing district, yet we receive less money from the state," he said. "We need the community's support to stay strong. A strong school district adds to the quality of life of a school system and enhances property values."
Valparaiso Community Schools is the lone district asking voters to approve both a general fund referendum and a construction referendum.
The district is asking voters to support a $148 million facilities plan to include a new elementary building, renovating Valparaiso High School and other buildings. The general fund referendum asks residents to support raising nearly $31 million over seven years to support teacher salaries and benefits.