Warren Township Schools ask voters for tax increase on $88M ballot referendum

MSD of Warren Township School district wants voters to approve an $88 million operating referendum in the May 2 primary election. The proposed property tax referendum would replace a levy approved by voters five years ago with a higher tax rate. 

The referendum

If approved, homeowners  in the boundary of the Indianapolis school district on the east side of the city would pay 30 cents per $100 of property value — an increase of 9 cents from the current tax rate. That would create roughly $11 million annually for each of the next 8 years. An average Warren Township homeowner would see a $4.79 per month increase, according to the district. 

In 2018, 65 percent of Warren voters approved an operating levy for a rate of 21 cents – that will generate roughly $7 million per year or $56 million over eight years, according to the district. 

But Matthew Parkinson, chief financial officer of the Warren Township School district said a higher tax rate is needed to replace the 2018 levy to maintain financial stability and respond to state and federal funding shifts. 

“As we're getting around to the community and talking about what this is to us, these are the basics of running a school district in 2023,” Parksin said during a March school board meeting. “We're not adding new programming, we don't think that we're doing anything that's far out there.”

Indiana lawmakers are considering various changes to how schools are funded during the current General Assembly. Federal COVID-19 pandemic relief funds are also scheduled to dry up in 2024. 

Replacing the referendum

Parkinson is concerned the language on the ballot, as required by a 2021 law,  could confuse voters. The ballot question includes an estimated property increase the school district will receive, but it’s calculated as if the 2018 referendum is not already in place —  making the property tax increase seem larger. 

“Because of the way that it's been rephrased, it would be completely understandable for a voter to get to the polling place and read it and maybe not quite see exactly what it’s trying to say,” Parkinson said. 

If voters reject the proposed increase the current property tax levy will expire in 2026. If voters approve the referendum on the May ballot the current 2018 referendum would expire at the end of 2023 and the new rate would then take effect, according to Parkinson. 

Where the money goes

If the referendum passes, Warren Township school leaders plan to provide more funding to five areas:

• $3,000,000 for transportation: Fund a portion of the wages and benefits for roughly 98 bus drivers and 36 bus monitors. And pay for other expenses, such as bus fuel and maintenance costs. 
• $2,836,402 for staffing needs: Fund a portion of the wages for all non-transportation support staff, such as instructional assistants, custodians and secretaries. And pay for other costs related to retention and recruitment, professional development, and family engagement. 
• $1,500,000 for technology: Provide device and other technology equipment purchases and services for students and staff.
• $1,600,000 for safety: Fund salaries and benefits for roughly 11 school resource officers, 14 school safety officers and equipment and supplies. 
• $2,100,000 for academics: Fund salaries and benefits for approximately 24 certified counselors and supplies. 

The district will host a community forum about the referendum on April 25 at the Warren Education Community Center. 

Early voting has begun for the May 2 primary election.

Contact WFYI education reporter Elizabeth Gabriel at egabriel@wfyi.org. Follow on Twitter: @_elizabethgabs.