The impact of a GOP state property tax relief law has caused the Crown Point Community School Corp. to lay off employees and end a popular early childhood learning program.
Crown Point is bracing to lose about $13.1 million over the next three years. Republican Gov. Mike Braun urged districts “to do more with less,” when he introduced the measure as the cornerstone of his legislative agenda.
The law affects other taxing authorities, as well, including local governments and libraries.
In Crown Point, the district has laid off 26 paraprofessionals who work in classrooms, credit recovery programs and study halls.
The district is also discontinuing its Birth to School early childhood program, triggering the elimination of two jobs.
Superintendent Todd Terrill shared the bad news on the district’s website last week.
“We understand any change can cause concern. These decisions were made after careful discussion while making sure students’ well-being and achievement remain our top priorities,” Terrill said.
Via an email exchange, Terrill said the 26 paraprofessionals were told they could apply for 30 other open positions that weren’t impacted by the cuts.
“Many expressed interest in staying with the district,” he said. “They will work with our HR team this week to find which role works for them and to plan transitions into their new positions.”
Meanwhile, he said the reduction in staff could cause some schedule changes in schools, but all the services students are receiving will remain in place next semester.
The Birth to School free program for infants and young children, based on Indiana’s Early Learning Foundations, will end in December.
It served hundreds of young families.
“This was a difficult decision, and it comes with heavy hearts,” Terrill said in a website statement.
The program, which offered once-and-twice a week classes for infants, toddlers and 2-and-3-year-olds, began with a grant. The district decided to finance it when the grant ended because of its value to children.
“We know how meaningful Birth to School has been in helping our youngest learners and their caregivers feel connected and prepared for kindergarten,” Terrill said.
In May, 83% of voters approved the renewal of a $67.2 million eight-year property tax referendum. Because of the new tax law, the district will collect about $3 million less from its referendum fund.
Terrill said SEA 1 undermined the voters’ support for its referendum and now it’s placed the promise of lower class sizes, safety initiatives and extra-curricular programs at risk.
Asked if Crown Point would opt for another renewal with a higher tax rate in November 2026, Terrill said it’s too early to say.
“What we do know, however, is that SEA 1 will result in millions of dollars of loss for our district. Those losses are going to have a big impact on us, and the board will need to determine how we confront that loss,” Terrill said.
SEA 1 provides heightening deductions to property owners through 2028 that will lower their tax bill and they’ll get a new tax credit, allowing them to take 10% up to a maximum of $300 of their bill.
SEA 1 is expected to cost Indiana public schools about $744 million in revenue.
The losses vary across the state and in Northwest Indiana districts.
While Crown Point stands to lose the most at $13.1 million, Valparaiso Community Schools, which has more schools than Crown Point, is expected to lose $5.7 million over the same time period.
Matt Ruess, Crown Point’s chief financial officer, said: “Each district is very different in terms of overlapping tax rates and circuit breaker losses, so it’s hard to say without looking into specifics at every district.”
Meanwhile, state Sen. Rick Niemeyer, R-Lowell, said the new law could face changes when the legislature reconvenes later this year.
“We have to figure out how to fund schools; it’s the number one priority,” said Niemeyer, who opposed the bill. He missed the final vote, however, because of a family member’s surgery.
“Cities and towns can increase income tax. School can’t,” he said.
Niemeyer, whose Senate district includes Crown Point, said schools will feel the biggest impact in 2027.
“It’s ongoing, and I don’t know what’s going to happen. We have to do something….”
Niemeyer said he didn’t support the bill because its impact happened too fast without enough answers.
“That bill is a work in progress,” he said.
For more information, visit https://www.cps.k12.in.us/.
Carole Carlson is a freelance reporter for the Post-Tribune.
