Sheridan Community Schools referendum aims to maintain existing funding, not increase taxes

Submitted by Sheridan Community Schools

As voters prepare for the Nov. 3 election, Sheridan Community Schools wants residents to understand that the proposed operating referendum is NOT intended to increase district funding. Instead, it would replace the referendum approved by voters in 2023, providing flexibility to maintain approximately the same level of funding despite changes to Indiana’s property tax system under Senate Bill 1 (SB1).

The proposed referendum would establish a maximum tax rate of $0.40, replacing the current $0.25 rate. However, the $0.40 rate is a maximum, not the rate the district intends to collect.

“We are NOT asking our community for more money,” Superintendent Dr. Dave Mundy said. “We are asking for the flexibility to maintain the funding our voters already approved. As assessed property values change and changes to property tax calculations are implemented, we need the ability to adjust our rate to maintain that revenue. Under Indiana school finance laws, we cannot do that without another community vote.”

What will this cost taxpayers?

Although the ballot indicates that the maximum rate could cost approximately $454 annually for a $250,000 home, the district does not intend to levy the maximum rate at this time.

At the October School Board meeting, Dr. Mundy and Director of Finance Mrs. Popejoy recommend maintaining the existing $0.25 rate for 2027 if the referendum passes.

That means for a home assessed at $250,000, the estimated annual referendum cost would be:

• 2026: $303 (current rate)
• 2027: $284
• Annual savings: $19

These estimates reflect changes to the standard and supplemental homestead deductions under SB1. As a result, a homeowner with a $250,000 assessed home would actually pay less in referendum taxes in 2027 than in 2026.

“We want our community to understand that the maximum rate on the ballot is not what we intend to collect,” Mundy explained. “Our goal is to maintain the funding necessary to support our schools without collecting more than we need.”

Why is the referendum necessary?

Without replacing the existing referendum, Sheridan Community Schools anticipates losing more than $500,000 in property tax revenue over the next five years.

The district is also facing reduced summer school and Alternative Education funding, a projected $300,000-plus deficit in its textbook and technology fund, reduced operations funding, and rising insurance and fuel costs. In preparation for these challenges, Sheridan Community Schools has already reduced spending by more than $300,000 over the past year.

One hundred percent of referendum dollars remain at Sheridan Community Schools, and support teacher and staff salaries. This funding is essential to attracting and retaining quality educators, maintaining smaller class sizes, and providing the educational opportunities Sheridan families expect.

“We work very hard to be responsible stewards of taxpayer dollars,” said School Board President Tyler Henning. “At the same time, we must remain competitive in retaining the outstanding teachers and staff who make Sheridan such a special district. This referendum allows us to balance those responsibilities.”

A commitment to transparency

Sheridan Community Schools has held more than 25 meetings with community groups to explain the referendum and answer questions.

“We support property tax reform, but we must also adapt to those changes without sacrificing the quality of education we provide,” Mundy said. “While we certainly hope our community supports the referendum, our priority is making sure voters understand the facts and what this means for Sheridan schools.”

The message is simple: Sheridan Community Schools is not seeking additional funding. The district is asking voters to help preserve the investment they already approved in 2023.