ST. JOHN — Voters in the Lake Central School Corp. will decide later this year whether to extend the district's operating referendum at a higher rate.
The Lake Central School Board voted during a special meeting on June 30 to place the school funding question on the ballot in a special election on Nov. 4.
The referendum, first approved with over 53% support in 2018, is set to expire at the end of next year. It currently generates over $11 million in revenue for the district. The referendum has been used for teacher and staff retention, hiring nurses and school resource officers, and paying for academic programs and student services.
If renewed by voters, the additional property tax levy would be renewed at 26.14 cents per $100 of assessed value for eight years, up from the current rate of 17 cents.
Superintendent Larry Veracco said the changes to property taxes enacted in Senate Enrolled Act 1, signed into law by Gov. Mike Braun earlier this year, would significantly reduce the amount of revenue the district collected in property taxes.
"This referendum that we're proposing is about maintaining stability, not expanding services," said Veracco. "It's about protecting all that we've worked for and built, not adding anything new, and it is not a new tax, it's a continuation with an updated rate that reflects our response to the new rules from the state,"
According to the non-partisan Indiana Legislative Services Agency, Lake Central schools are projected to lose approximately $12.3 million in property tax revenue over a three-year period starting in 2026.
Under the new rate, the district would collect up to $17.7 million annually from the operating referendum, if renewed by voters. However, Director of Business Services Rob James said that amount would gradually decrease year over year due to the changes enacted by SEA 1.
Veracco said that while the proposed rate was higher, a majority of homeowners would not pay more in taxes due to the deductions and tax credits in the property tax relief bill.
According to the superintendent, the overall property tax bill for a median-priced home of $333,000 in St. John Township would decrease by around $100 next year, even with the new referendum rate.
In addition to Lake Central schools, the Hanover Community School Corp. and Duneland School Corp. will be seeking referendum renewals this fall.
SEA 1 limited all school referendum ballot questions to general elections in even-numbered years starting July 1. However, the law did allow school districts to seek a new operating referendum or the extension of an existing one this year if their school board approved it by June 30.
© Copyright 2025, nwitimes.com, Munster, IN