Revenue Sources
Federal
Federal dollars make up a small portion of the HSE budget and are designated for specific programs, including Title grants, special education, and other grant-supported initiatives.
State
State dollars are distributed through the tuition support formula. This starts with a base amount that is the same for every student across the state. Additional funding (complexity) is then added based on student needs, including those who qualify for SNAP, TANF, or foster care.
Beginning in 2025–2026, curricular materials support (approximately $158 per student) is included in the tuition support formula. Previously, this funding was provided as a separate grant. For HSE, curricular materials support totals about $3.2 million. This change is important to consider when comparing tuition support amounts between school years.
Schools receive additional state funding through grants to support special education, English language learners, and certain career and technical education programs, and academic performance.
Hamilton Southeastern Schools ranks in the bottom 2% of all Indiana school districts in state tuition support per student.
Local
Local dollars from property taxes support essential district operations, including transportation, maintenance, and capital projects. Communities may also support schools through voter-approved referendums. A maximum Operations Fund levy is set each year for HSE. In 2026, the levy is $42,582,439.
In 2023, voters in our district approved a referendum with a maximum tax rate of $0.1995. In the 2026 budget, 97% of those dollars support teacher salaries and benefits, with the remaining portion dedicated to safety and security.
Property Tax Caps
Indiana’s property tax cap helps protect homeowners by limiting taxes on primary residences to 1% of a home’s gross assessed value. If a tax bill goes beyond that threshold, a credit is applied to reduce it.
That credit is shared across all local taxing units, including schools, resulting in a proportional adjustment to the amount received. In 2025, this meant a $4.6 million reduction for Hamilton Southeastern Schools.
Referendum and debt service exempt rates are not included in the 1% cap.
Homeowner Calculation Example
For this example, we will apply the Homestead Standard Deduction ($48,000) and the Supplemental Homestead Deduction (40% after the standard is applied).
$300,000 - $48,000 = $252,000
$252,000 x .40 = $100,800
$252,000 - $100,800 = $151,200
The tax rate in 2026 for HSE is $1.1476
rate x (NAV/100) = levy
$1.1476 x ($151,200/100) = $1,735.17
For this home, $1,735.17 in taxes would potentially go to HSE. Additionally, the maximum this homeowner will pay in taxes is $3,000 (1% of $300,000) before referendum-approved taxes. This includes the school and all other local taxing units, such as city/county and township taxes.
You can estimate your property tax bill and apply other deductions on the Indiana Gateway website.
Supplemental Homestead Credit
Beginning in 2026, an additional homestead credit will reduce a taxpayer’s bill by the lesser of 10% of their liability or $300. This credit is applied after the tax caps and deductions outlined above. In this example ($300,000 home), the homeowner would pay a maximum of $3,000 before any approved referendum taxes and then receive a $300 credit.
In 2026, the homestead credit is estimated to have an impact of $4.5 million on HSE.
In 2026, the homestead credit will impact both the Debt Service Fund and the Operations Fund. Starting in 2027 and beyond, all homestead credits will impact the Operations Fund.