Answering questions about school funding, cost to taxpayers
NOBLESVILLE SCHOOLS
For The Reporter
Editor’s Note: The following is Part 2 of a 4-part series written by Noblesville Schools administrators in an effort to explain their proposed 2018 referendum to voters and parents. This referendum will be on the ballot during the Nov. 6, 2018 election and, if passed, will affect Noblesville school district taxes. Each part of this series will be available on our website, ReadTheReporter.com, and on our Facebook page, Facebook.com/HamiltonCountyReporter, on the date of publication.
How are schools funded in Indiana?
The state provides a specific amount of money per student, and this amount is different for each school district and changes year to year.
Districts that serve more affluent areas get less money per student from the state. Districts with a higher percentage of low-income students (determined by the number of students who receive free/reduced lunch) get more funding per student for all students.
In 2019, these state dollars will be deposited to the district’s education fund to be spent on instructional programs including salaries and benefits, guidance and media services, and supplies.
Other district needs like transportation, capital projects (construction and building maintenance), bus replacements, and debt services are funded through property and special taxes.
When the state implemented property tax cap legislation, it significantly decreased funding for schools. Schools can now no longer fully collect property taxes from residents.
Referendum dollars are a funding source that must be voted on and approved by the community. They support the district and can be used in any budget area. Because of property tax cap legislation and decreases in state funding, districts are now more dependent on referendum funds to maintain services for students.
What’s the referendum proposal for Noblesville Schools?
The current operating referendum tax rate is 18.9 cents. The new referendum would replace the 18.9 cents rate with a new rate of 37 cents. This would raise $6.25 million per year for eight years.
For a median Noblesville home valued at $206,000 this means $15 more a month.
Noblesville Schools is seeking this increase in funding so they can address mental health, school safety and teacher compensation needs. The new referendum would replace the existing one and would provide funding through 2026.
In 2016, Noblesville voters approved an extension of the district’s operating referendum at a reduced tax rate to maintain the status quo of programs, staff and services. Since then, additional school safety, mental health services and staff compensation needs have been identified.
The safety of our students and staff is our top priority and we need additional funding to provide enhanced protections, safety staff and safety-related services.
Also, the teacher shortage in Indiana continues to make recruiting and retaining talented teaching staff a significant challenge. Other area school districts have recently increased teacher compensation and we must do the same or we will continue to lose talented staff to other districts and the private sector. In some cases, our teachers are making $10,000 less than equivalent teachers in neighboring districts. Strong teachers are the most important factor for student growth, academic excellence and safety.
How much will the referendum actually cost me?
Noblesville Schools is asking the community to increase the referendum already in place to a rate of 37 cents. This would raise $6.25 million per year.
The referendum rate is an annual rate applied to every $100 of a home’s assessed value.
For a median Noblesville home valued at $206,000 this means $15 more a month.
The website milleryes.org has a calculator tool Noblesville residents can use to see how much they pay currently with the 18.9 cent rate and what they would pay under the new 37 cent rate.
What’s the difference between capital and operating referendums?
Capital referendums fund building construction projects. For example, a 2010 capital referendum funded Promise Road Elementary as well as several building additions and renovations.
Operating referendums pay for people and programs including staff salaries, benefits, curricular offerings, supplies and equipment.
Our current referendum is an operating referendum and we are asking that it be expanded. Teacher compensation and the majority of our safety enhancements are best addressed through operating funds.
We anticipate that we will have some construction projects related to safety and we plan to fund those through a loan (bond) rather than a capital referendum. A construction loan will not increase property taxes.