Voters in the Metropolitan School District of Shakamak approved an operating referendum Tuesday, Nov. 3, authorizing the district to collect up to $499,000 annually in additional property tax revenue for no more than eight years.

Voters approved the referendum with 719 votes in favor and 683 votes against. This includes votes from Greene and Clay counties.

The measure authorizes an additional property tax rate of no more than 25 cents per $100 of assessed value to help fund daily school operations, retain teachers and staff, maintain academic programs and support school safety initiatives.

The Shakamak Board of School Trustees voted June 18 to place the referendum on the November ballot, citing financial pressures associated with changes in Indiana's school funding system and increasing operational expenses.

District officials have said changes in state funding, including Senate Enrolled Act 1, combined with rising insurance, transportation, utility and employee benefit costs, have created financial challenges for the rural school district.

According to information provided by Shakamak before the election, property and casualty insurance expenses increased from $55,434 in 2020 to $112,184 in 2025, an increase of approximately 102%.

Health insurance expenses increased from $670,312 in 2021 to $1,114,717 in 2025, an increase of approximately 66%.

District officials also cited reductions in taxable assessed valuation, circuit-breaker losses and limited local revenue growth as factors contributing to the need for additional funding.

Although the referendum authorizes a maximum tax rate of 25 cents per $100 of assessed value, district officials have emphasized that the actual rate could be lower.

Before the election, Shakamak officials said financial projections indicated the district could begin with a rate closer to 18 cents per $100 of assessed value.

The School Board would vote publicly on the actual rate each year based on the district's financial needs, assessed valuation and overall financial condition.

Ballot information estimated the annual property tax increase for a median residence with an assessed value of $100,000 at $81 under the maximum proposed rate.

District informational materials also estimated that the average taxpayer would pay approximately $66 annually, or $5.50 per month, at the maximum rate.

The additional revenue is restricted to operating expenses and may be used to maintain staffing, academic programs, school safety initiatives, class sizes and daily educational operations.

District officials have said referendum money would not be used for new building construction, major facility expansions or athletic facility construction.

With voter approval, Shakamak will now have the authority to collect the additional operating revenue within the limits established by the referendum.