If the local referendum to continue paying for Muncie Community Schools busing passes after a vote today, Ball State student’s rent may rise with property taxes.
Chris Hiatt, owner of Hiatt Printing and several rental properties around Muncie, said in an interview with WCRD that he has already sent out a letter informing his renters of the ramifications of the referendum.
“[The letter is] me telling them that I am going to incur this additional cost and that this cost will affect their rent,” he said.
Businesses that incur this cost will be forced to raise their prices to cover the additional property taxes, which could be up to a maximum of 39.39 cents for every $100.
Hiatt said the average increase in tax dollars will between $200 to $400 yearly, which will then be passed on to renters, who are often the poorest of Muncie residents.
“How can you be concerned?” Stacy Walker, a Muncie bus driver, asked after hearing Hiatt’s statement. “You can’t be concerned [about those in poverty] and hurt them in the same sentence.”
Mark Burkhart, MCS chief financial officer, said although Hiatt may say he cares about those in poverty, those are the exact same people the referendum looks to help.
He said the loss in a bus service would affect students living in poverty the most because they have no other way to access their public education.
Burkhart said the rate has already been set for the first of the seven years the referendum would cover at 22 cents, lowering any previous estimates for a tax increase.
Another problem Hiatt has with the referendum is his belief that the consequences of failing to raise the tax rate are “felicitous.” He also said he believes the school system is using a threat to students as a way to further their own goals.
“Targeting the children for the purpose of addressing their agenda is despicable,” he said. “I think [the tax] is unnecessary, we think it has been launched under suspicious means.”
According to Indiana law, a school district must inform the public three years in advance and also must get permission from the state before ceasing operation.
MCS has asked the state for a waiver of the three year law, and the state has decided to withhold judgment on the waiver until a vote on the referendum.
Walker said she hopes those voters can stop thinking about their wallets and instead, think about how the cease of operation will impact the children.
“We hope that [the referendum] does pass,” she said. “We don’t want to have to look the kids in the eye and tell them we are taking their school buses away.”
Hiatt said when it is all said and done, today’s vote is on an increase in taxes.
“At the end of the day when you go to the voting box, it is simply a tax,” he said. “There is no mention of children in the referendum.”
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