EDUCATION

3 Indy area school districts win property tax hikes

Eric Weddle
eric.weddle@indystar.com

Three Indianapolis-area schools won voter approval Tuesday for higher property taxes to shore up finances hit hard by the state's property tax cap and other funding fluxes.

The victories were overwhelming for Decatur Township schools in Marion County and Eminence Community Schools in Morgan County. But the referendum for Mount Vernon Community Schools in Hancock County passed by a thin 10-vote margin.

Eminence faced the dire consequence of closing its doors after next year if the referendum failed. Instead, 87 percent of the vote in the small farming community backed the tax hike, said Superintendent Terry Terhune.

That's the highest percentage of "yes" votes for a school referendum since they were first allowed in 2008.

"It comes down to the community and that was their response to how important the school was," Terhune said. "We had tremendous amount of people come out. Many told us they were only voting for the school."

Terhune and referendum supporters said the school of about 400 students is the heart of the community. If it was shuttered, many worried the town could follow.

The referendum could generate up to $4.4 million in the next seven years with a local property tax rate increase of 40 cents per $100 of valuation. But Terhune said in at least the first year, the district would increase the rate only by 25 cents to raise $390,000.

Decatur voters approved a $27 million referendum that will help save two of the district's schools, possibly save bus service and help district stabilize its budget that had taken a hit from property tax caps.

About 64 percent of voters supported the referendum, with all precincts reporting.

Dozens of students, parents and staff celebrated in the Decatur High School library. Many wore blue and gold "Decatur proud!" T-shirts and cheered when the news came in. A few parents cried for joy.

"When I got here and saw the budget, I saw we had some obstacles we had to deal with," said Superintendent Matt Prusiecki as he held back tears.

"Coming together like this is incredible," he told referendum supporters. "Without your support, we would not have achieved this."

Prusiecki became the district's leader last September. Before he arrived more than $12 million was chopped from the budget since 2010, but the district still faces a $2.5 million annual deficit.

Mount Vernon's thin victory will bring a much-needed $2.5 million over three years to pay off debt and reinvest in the classroom. A grass-roots initiative to pass the referendum paid off, said Superintendent Bill Riggs.

Unlike the failed referendums in 2010 and 2012 promoted by Riggs and school board members, two parents initiated this year's referendum. McCordsville fathers Larry Longman and Jeff Mull became the face of the movement to shore up the school's funding.

"The public came to us — Larry and Jeff — and said let us run with this," Riggs said. "It was the parents saying that we really need the money."

Asked if he feared a recount, Riggs said he did not.

"I do feel good and I will enjoy this moment," he said.

Statewide, the three districts were among nine primary referendums to raise local property taxes for school construction projects or operating funds. Since 2008, a state law has required voters to decide whether to give more funding to public school districts above and beyond property tax caps.

Since 2011, 36 referendums for operational funds have been waged in Indiana, 13 more than for new construction projects. It's a sign that more schools are desperate for money to pay teachers, run buses and keep academic programs operational than they were just a few years ago when efforts to build new schools were more common.

Call Star reporter Eric Weddle at (317) 444-6222. Follow him on Twitter: @ericweddle.

Indy's three approved school referendums

• Decatur Township Schools: $27 million funded from an increased property tax rate of 29 cents per $100 of valuation, starting in 2015 and continuing for seven years. Tax bills would go up about $80 a year for homes with an assessed value of $92,500.

• Mount Vernon Community Schools: $2.5 million funded from increased property tax rate of 11 cents per $100 of valuation, starting in 2015 and continuing for three years. Tax bills would go up about $40 a year for homes with an assessed value of $100,000.

• Eminence Community Schools: Up to $4.3 million funded from an increased property tax rate of 40 cents per $100 of valuation, starting in 2015 and continuing for seven years. District officials will ask for only a .25 cent increase in the first year. Tax bills would go up about $58 a year for homes valued at $108,000 at the reduced rate. For the full rate, bills would increase $93 per year.