Here's some extra motivation for residents of the Crown Point and Hobart school districts to vote in Tuesday's school funding referendums.

It's the last time a ballot question like this will be asked at a May election in Indiana.

Senate Enrolled Act 1, the controversial property tax cut that's likely to lead to long-term local income tax increases, also included language limiting tax rate ballot questions to elections when voter participation generally is at its peak.

As a result, beginning July 1, school funding referendums and other local public questions only may be posed to voters on a general election ballot, alongside races for national, state and local elected offices.

 
 
 

Shool districts, for better or worse, no longer will be able to have their requests for additional funds for operations, building or school safety projects considered by voters separate from the passions that typically animate general elections in the Hoosier State.

"The turnout in the general election is significantly higher than in the primary election. The objective is to have as many voters and taxpayers as possible to weigh-in on these referendums to be most reflective of the populace," said state Rep. Tim Wesco, R-Osceola, during debate on House Bill 1681 that got merged into the property tax law.

According to the Department of Local Government Finance, school referendums routinely pass and fail at both primary and general elections, in even- and odd-numbered years, usually due to local factors.

 
 

That's why state Rep. Carolyn Jackson, D-Hammond, believes local officials still should get to decide when to put a referendum on the ballot and the Republican-controlled General Assembly shouldn't be limiting voter decisions on school funding questions to one chance every other year.

 

"Repeated cuts to school funding have led more of our school districts to turn to referendums to maintain funding for academics and teacher pay. The current system works and empowers voters to make a choice on what is best for their community as well as their schools," Jackson said.

State Rep. Chuck Moseley, D-Portage, also suggested the long delay between referendum opportunities could lead to higher taxpayer costs for school construction projects due to inflation or tariffs enacted in the interim.

The new law additionally requires school districts share a portion of their property tax receipts, including any operating referendum revenue, with local charter schools, and imposes a one-year "cooling off" period before a local unit of government can reissue a general obligation bond or undertake a new, debt-funded capital project.

 

"The practice has been, especially in school corporations, for that debt to roll just from one year to the next, so the taxpayer doesn't have an opportunity to see a reduction in the (property tax) rate," said state Sen. Travis Holdman, R-Markle.

 

"This way the taxpayer sees a reduction in the rate because there's no obligation by the corporation, whether it's a school, city, town, township or county, to renew that."

State Sen. Greg Taylor, D-Indianapolis, suggested any perceived savings from that provision will be "smoke and mirrors," since it will cause Hoosiers' property taxes to yo-yo from one year to the next as old debt gets paid off and new debt is incurred.

Republican Gov. Mike Braun signed Senate Enrolled Act 1 into law April 15.

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