The Duneland School Corporation wants to stay ahead of potential financial challenges posed by a new state law by asking voters Nov. 4 to renew a referendum levy.
Indiana Senate Enrolled Act 1 enacted property tax reforms that provide breaks for homeowners, but will cap future revenue growth for municipal governments and school districts.
A fiscal analysis performed by the state’s Legislative Services Office on the impact of Senate Enrolled Act 1 estimated that Duneland Schools could lose about $8.3 million in property tax revenue over the next three years, starting in 2026.
Voters first approved the referendum at 22 cents per $100 of assessed property value in 2012. Duneland voters renewed the levy in the May 2019 election, with a 73% favorable vote.
The school board decided to approach voters a year early by putting the issue on the November ballot. The 8-year renewal’s stated purpose is for “sustaining educational and operational funding stability in response to reductions in property tax revenue.”
“The referendum renewal allows us to maintain what we have now. This is not to add new programs or staff,” Superintendent Chip Pettit said. “I would contend that the community does not want us to trim 15 to 20% of our budget.”
The levy seeks an increase to 39 cents per $100 of assessed property value. The reason is that the state has changed the way that property taxes are calculated, with homeowners getting larger deductions on their property valuation. As a result, governmental entities will receive less.
A resident with a home assessed at the median value of $350,000 would still pay $25 to $40 less in property taxes next year if the levy is approved, the school district says.
The average savings from the new property tax law are around $300. In essence, the school district is asking voters to give it a portion of the projected savings created by Senate Enrolled Act 1.
The Nov. 4 ballot language states that the levy would raise a maximum of $16.1 million. The language for the two prior referendums didn’t state a specific amount of money to be raised.
Currently, the levy raises $8.9 million per year. Operating levy referendums don’t cap property tax revenue, so the school district has seen an increase in yearly receipts from when the referendum was first approved.
Lynn Kwilasz, the assistant superintendent and chief financial officer, said during the budget hearing on Oct. 6 that if the referendum is approved by voters, she favors putting aside $5 million in a rainy day fund so the district can be prepared.
Pettit said that Duneland is likely to see lower revenues from the referendum in the coming years because the property value deductions for homeowners are scheduled to rise.
Altogether, Duneland projects that it will not realize $30 million in potential revenue with the new state changes over the eight years of the referendum, Pettit said.
Originally, the Duneland Schools were going to ask for the renewal during the spring 2026 primary.
But Senate Enrolled Act 1 also mandated that school districts could only approach voters with a referendum vote during the November general election.
Kwilasz, Pettit and the school board believed it was a better idea to go a year early and put the issue on the Nov. 4 ballot.
School districts usually approve their budgets in October, so there would be uncertainty about next year’s budget if they had to wait until November 2026 to put the measure on the ballot.
School Board member Jocelyn Hibshman acted as a co-chairman for the referendum renewal in 2019.
Hibshman explained that the first referendum was prompted by changes the Indiana Legislature made in 2010. The state changed the way funds were distributed to local school districts, reducing the amount to Duneland Schools.
The pitch to the Duneland voters in 2012 was to supplement the educational program. Ballot language this November states the levy would be used to recruit and retain teachers and staff, essential student health and safety initiatives, maintain class sizes, and advance academic programs and opportunities to meet the learning needs of all students.
“Dr. Pettit has been a game changer,” Hibshman said.
Pettit assumed leadership of the Duneland School Corporation in June 2019 after serving for seven years as principal at Crown Point High School. During his Duneland tenure, he oversaw a $171 million building program that built a new Yost Elementary School and expanded the Liberty and Westchester Intermediate Schools so they could accommodate seventh and eighth graders, resulting in the closure of the Chesterton Middle School.
Hibshman said she believes that Pettit’s biggest accomplishment has been in upgrading the school district’s academic performance. Duneland finished first in Northwest Indiana and eighth in the state on the ILEARN examinations for 3rd through 8th graders.
“He is very teacher-focused and curriculum-focused, making sure that every student has the opportunity to learn,” Hibshman said.
In particular, Hibshman said that more aides have been hired to help with children who are falling behind, and assistant principals have been added at the elementary school level to handle disciplinary issues.
The referendum campaign has gone with the slogan “Continue the Excellence.”
There is no organized opposition to the referendum, but there are some social media posts from people who say they are unhappy with the school district asking for the renewal.
Early voting for the referendum starts Monday and continues through Nov. 3. Duneland voters can cast ballots from 8:30 a.m. to 3:30 p.m. Mondays, Wednesdays and Fridays; 11 a.m. to 7 p.m. Tuesdays and Thursdays; and 8 a.m. to 3:30 p.m. on Saturday Oct. 25 and Nov. 1. Voting locations are the Porter County Administration Building, 155 Indiana Ave., Suite 102 A, Valparaiso. and Duneland School Corporation Trojan Learning Center Annex, 411 S 5th St., Chesterton.
Early voting ends at noon Monday, Nov. 3. More information can be found at www.portercountyin.gov/1111/Early-Voting.
Jim Woods is a freelance reporter for the Post-Tribune.
