Schools seek answers after voters reject tax hikes

Who: Indiana and Muncie officials

What: Taking part in a public hearing to discuss waiver to end school busses without waiting the required two years

When: Dec. 9

Why: Without the waiver Muncie would be forced by state law to continue busing students without the funds to do so

MISHAWAKA, Ind. — Failed referenda in two Indiana communities are forcing school officials to regroup as they assess their needs for everything from leaky roofs to bus transportation.

Mishawaka voters this month rejected a $28 million referendum that would have helped upgrade security and technology, replace aging boilers, fix roofs and make other repairs. Muncie voters rejected a tax increase that would have raised more than $3.3 million to cover transportation expenses in 2014.

The voters’ decisions have left both districts with difficult decisions to make. Muncie is asking the state for permission to end school bus service for more than 3,500 students at the end of this school year, and Mishawaka is searching for ways to set aside money for the most critical repairs.

“As superintendent, I want to provide transportation, but right now, we don’t have the money to do it,” Muncie Superintendent Tim Heller told The Star Press.

Both districts say they have been hurt by property tax caps that have reduced revenue.

Mishawaka Superintendent Terry Barker said it’s too early to say whether his district will seek another referendum in 2015. He told the South Bend Tribune that he plans to ask city officials if they’d consider releasing some TIF funds to help finance the schools’ critical repair needs.

In Muncie, state and local officials will hold a public hearing on Dec. 9 to discuss the request for a waiver allowing the district to end school bus transportation after this year.

A state law passed in 2012 requires Indiana school districts to give a three-year notice if they plan to end transportation services but allows districts to seek a waiver from that waiting period.

Muncie Community Schools is the first district to seek a waiver.

If the waiver is denied, the district will be required to keep the buses running. But school officials say they can’t afford to wait three years because the district doesn’t have the money.

Both districts could go back to voters in the future. A Purdue University expert said districts that have lost tax-increase votes and then tried again have had some success the second time around.

“Eleven have repeated [referendums] and four have won,” said Larry DeBoer, an agricultural economist who studies referenda.

DeBoer said the style of campaign rather than the amount of money could be the key to victory.

“Early on,” when the referendum process first began, DeBoer said, “schools just put it out there and figured people would come vote ‘yes.’ Now, they’re hiring actual campaign consultants who go door to door.”

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