Frequently Asked Questions

An operating referendum is a voter-approved funding source that allows school districts to raise local revenue for day-to-day expenses that are not fully funded by the state. 

For Hamilton Southeastern Schools, referendum funding primarily supports teacher salaries and benefits, as well as essential school safety and security measures. 

Yes. The 2023 referendum remains in effect and does not expire until 2031. The proposed 2026 operating referendum is designed to replace the previous 2023 operating referendum. 

However, during the 2026 legislative session state lawmakers approved changes to Indiana property tax law (SEA-1) that are expected to reduce the amount of revenue HSE Schools receives from the referendum. This impact is projected to total more than $45 million over the final six years of the approved referendum period (2026-2031). As a result, the district is projected to receive less funding than voters intended when the referendum was approved. 

Senate Enrolled Act 1 (SEA-1) is expected to increase deductions for taxpayers, which will reduce local revenue available to HSE Schools, including revenue generated through the district's operating referendum. While voters approved the current referendum in 2023, the district is projected to receive less revenue than originally anticipated due to changes in state law. 

The referendum fund is primarily used to support teacher salaries and benefits, which account for more than 97% of the 2026 referendum budget. The remaining funds support essential safety and security measures that help protect students and staff. 

For 2026, the referendum fund includes approximately: 

• 67% Salaries 
• 30% Benefits 
• 3% Professional services related to safety and security 
• Less than 1% Supplies and materials related to safety and security 

For 2026, the referendum fund includes: 

• Budgeted expenses: $29.96 million 
• Projected revenue: $28.49 million 

These funds support teacher compensation and school safety initiatives throughout the district. 

The referendum fund is supported through additional local property taxes approved by voters. The current referendum approved by voters in 2023 has a maximum tax rate of $.1995. 

The exact impact will vary based on your property's assessed value and individual tax situation. While the ballot question will indicate that the median homeowner would see an increase of approximately $700, the actual increase in 2027 for the median homeowner is projected to be about $37 per year, or roughly $3 per month, compared to 2026. 

The $700 figure assumes this is a brand-new referendum and that the full $0.3600 tax rate would be levied in the first year. Neither of those assumptions applies to HSE Schools' proposal. 

Prior to recent legislation, through the referendum process most school districts selected an annual rate that was used each year of an 8-year referendum.   Generally, for HSE the same voter-approved rate was used each year and with annual increases in Net Assessed Value (NAV), the levy the district received increased each year.  This helped to support inflationary costs on an annual basis. 

With recent legislation projected to result in declining NAVs over at least the next five years, the district must establish a maximum rate and maximum levy not to exceed over the next 8 years. (Using the same rate each year under current legislation would actually result in a decline in revenue each year.)  Our proposed approach would be to gradually increase the rate each year to provide some annual increases to the Referendum Levy. Based on all current funding and legislative assumptions, it is not our intent to utilize the maximum rate or maximum levy during the 8-year proposed term of the referendum. 

Like many Indiana school districts, HSE Schools relies on a combination of state funding and local referendum funding to support district operations. State funding alone does not fully cover the costs of maintaining competitive teacher compensation, school safety measures and other services expected by the community. 

Operating funds support the day-to-day educational and administrative functions of the district, including employee salaries, benefits, instructional materials, transportation, and utilities. Construction/debt service funds are dedicated to building, maintaining, and financing school facilities and infrastructure.

No, annually during the budget process a Referendum spending plan will be presented for approval.  This takes place through the budget process where public input is welcomed over multiple meetings.  Once approved, the spending plan will document the specific expenses that can be paid from the Referendum Fund.  

Just like with your own home, repairs and preventative maintenance are necessary to ensure the longevity of our school buildings.  The larger renovations and remodels to our buildings are funded through bonds.  This is a separate bucket of funds that have specific spending requirements.  Bond dollars cannot be used for salaries and benefits of instructional staff members.   

HSE Schools receives less state funding per student than most Indiana school districts. For the 2025-26 school year, HSE Schools receives approximately $7,121 per student, ranking 370th out of 376 school districts (including charter schools) in Indiana. 

Yes. Recently, HSE Schools has identified more than $7 million in ongoing cost reductions through operational efficiencies, staffing adjustments, contract reviews and other cost-saving measures. Additionally, district leadership continues to evaluate spending while working to maintain high-quality educational opportunities for students. 

If the referendum is not approved, then the district will continue with the current rate of $.1995. This will require the district to identify further budget reductions to address projected revenue losses. Because referendum dollars primarily support teacher salaries, benefits and school safety measures, reductions could affect staffing, programs, services and other supports currently provided to students. 

If approved, during the annual budgetary process, the Board of Trustees will approve a Referendum Fund rate for the next calendar year in October through a resolution.  In addition to the rate, a spending plan will be required to be shared with the community and approved by the Board.  

If approved, referendum funding would help continue supporting: 

• Teacher recruitment and retention 
• Competitive compensation and benefits 
• School safety and security measures 
• Student behavioral health supports (new) 
• Academic programming and student services 

Like all spending, oversight and approval are provided by our School Board.  Additionally, annual financial reports and auditing processes ensure spending is managed appropriately.  Our district finance page provides additional details on the monthly expenditures from the Referendum Fund.    

The referendum question will appear on the November 3, 2026 ballot. Register to vote, check your voting status, and final your polling location online at Indiana's Voter Portal.