School districts weigh budget plans after Indiana referendum results

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What referendum results mean for schools

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Voters in at least two dozen Indiana school districts approved measures Tuesday to collect more property taxes, while 12 referendums failed.

School leaders are now preparing for what the results could mean for their budgets.

In Indianapolis and Hamilton County, voters approved most referendums to help fund their local schools.

In Hamilton County, voters approved referendums in Hamilton Southeastern, Carmel Clay, Noblesville and Westfield Washington.

Funding from the approved referendums for IPS and Hamilton Southeastern will begin in 2027.

Matt Kegley, superintendent of Hamilton Southeastern Schools, said the referendum’s approval will support teacher salaries and benefits, provide some counseling resources for students, and address safety measures. “It’s a continuation of work we’re already doing. We just wanted to be able to support that moving forward.”

Coming off its referendum’s approval, Hamilton Southeastern School Board on Wednesday approved the district budget and a tentative contract with teachers.

Indianapolis Public Education Corp. also received voter approval to provide additional funding for Indianapolis Public Schools (IPS). The district plans to use the money to help support its schools as it continues to address financial challenges.

“There are two specific actions we will take this month,” said IPS Superintendent Aleesia Johnson. “One, we will ask our board to act on our recommendations for school mergers going into next school year. Two, we will ask our board to take the necessary action that allows us to formally begin rightsizing our existing Innovation Network schools agreements.”

IPS Innovation Network Schools are public, autonomous schools operated by nonprofit boards.

The Indiana School Boards Association is a private nonprofit that represents public school boards and board members across Indiana. The association said voters in most communities chose to support additional funding despite concerns about the rising cost of living. Executive Director Terry Spradlin said 27 referendums were approved.

“It reinforces that voters support their local community public schools and view public schools, their schools, as anchor institutions,” Spradlin said.

But not every district received that support. Failed referendums included Decatur Township Schools in Indianapolis. Superintendent Scott Collins said the district will navigate the challenges ahead with students at the center of every decision. Collins issued a written statement.

“Without this funding, our district will face difficult decisions regarding the necessity to cut over $8 million from our budget by 2028. Over the coming months, district leadership and the School Board will carefully evaluate our financial situation, identify staffing and programming to cut, and determine the adjustments necessary to operate within our available resources.”

A referendum also failed in Shelby County. Superintendent Matt Vance of Shelbyville Central Schools said the district will do everything possible to minimize the impact on students and staff. He issued a statement.

“As we move forward, we will continue to carefully evaluate our financial position, make responsible decisions, and explore every opportunity to preserve the educational experiences and opportunities our students deserve. We will also likely need to prepare for another referendum in the future as we continue working to maintain the programs and services that are important to our students, staff, and community.”

Failed referendums could lead to layoffs, larger class sizes, and delays to programming and maintenance in the next few weeks and months, the Indiana School Boards Association said.

“A lot of those decisions need to be made to help execute to help the budget balance,” said Spradlin. “They have to live within their means of the revenues available and, unfortunately for some, that means expenditure cuts, which have implications of personnel and programs.”

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