Property tax reforms in Indiana could have paved the way for “as many as 100 public school districts” to ask voters directly for more funding through referenda, according to the Indiana Capital Chronicle.

Advocates of the referendum approach argue public education is underfunded and taxpayers must cover the shortfall – estimated at $744 million through 2028 – because of Senate Enrolled Act 1, signed into law last year.

“When you adjust for inflation, we are actually spending at least $100 less per student now than we did 16 years ago, and that equates to about a 7% reduction in per pupil funding for public school students from the 2010-2011 school year until today,” Joel Hand of the Indiana Coalition for Public Education (ICPE) told the news outlet.

Hand, who is the group’s general counsel, lobbyist and co-founder, pointed to property tax caps in 2008 changing the way the state handled referenda – historically “through a petition and remonstrance process,” the Chronicle explained.

“Now, school districts are preparing to ask voters for support to offset reductions in property tax revenue, with only a 2% increase in K-12 funding provided in last year’s biennial budget.”

Reckoning with low voter approval rates

Referenda can help cover Indiana school expenses in security, construction or general operations, according to the article.

“The bill restricts school corporation referendums to general elections in even years to protect voters from unexpected tax increases approved in low-turnout elections, especially if there are no other questions or candidates on the ballot to catch voters’ attention,” Mackenzi Klemann wrote.

“This in turn limits how often schools can go to voters for new revenue, at a time when superintendents say they are likely to consider referendums to keep their districts afloat.”

However, even referendum supporters acknowledge voters often fail to approve these ballot measures.

For example, state voters rejected four of seven K-12 operating fund referenda in November 2022, according to the Chronicle.

Other states such as Minnesota and Wisconsin have also turned increasingly to referenda as a school funding tactic, with mixed results.

“Over the last six or seven years we have seen a somewhat of a decrease in the rate at which these referenda are approved,” said Mark Sommerhauser, communications director and policy researcher at the Wisconsin Policy Forum.

Recent legislation, Assembly Bill 71, would have eliminated Wisconsin’s recurring operating referenda and limited a non-recurring operating referendum to no more than four years.

However, it failed to pass the Senate in March after a public hearing.

“We wrote the bill so that every four years, the school districts have a chance to say, ‘This is what we’re spending, this is what we have, this is what we need’ and rationalize why they need extra money,” said Rep. Cindi Duchow, R-Town of Delafield. “If every four years they can say for whatever reason they’re still not getting enough money, (voters) can say ‘yes’ or ‘no’ and it’s up to the taxpayers to make that decision.”