Voters in the Metropolitan School District of Shakamak will decide in November whether to approve an operating referendum that could generate up to $499,000 annually for the district for no more than eight years.

Ahead of Election Day, district officials are encouraging residents — whether they support the proposal, oppose it or remain undecided — to attend upcoming information sessions, ask questions and learn more about the referendum and its potential impact on taxpayers.

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The next community information session will be held at 6 p.m. Tuesday, Sept. 15, at Lebanon Church in Midland. A second session is scheduled for 6 p.m. Monday, Oct. 19, in the Shakamak High School Library in Jasonville. Superintendent Dr. Jacinda Smith will present information about the proposal, the financial factors behind it, its estimated taxpayer impact and how referendum funding could be used.

Smith said she hopes residents will submit questions in advance so the presentations can address the issues community members want to better understand.

“We have a form available and are asking people to submit questions prior to the meeting,” Smith said. “I want to make sure I am prepared. I want to make sure I am addressing their questions. I want to make sure I am meeting the needs of the people and respecting their time.”

The district says questions submitted in advance will help guide the information presented during the sessions and allow officials to prepare complete responses.

Submit a question before a Shakamak referendum information session

Smith is encouraging residents to attend even if they have already formed an opinion about the referendum.

“I understand the referendum can feel complicated,” Smith said. “These sessions are an important opportunity to hear directly how it would affect our school and you as a taxpayer. Even if you already have an opinion or are undecided, I hope you take the time to understand what is being proposed before election day.”

What voters will decide

The Shakamak Board of School Trustees adopted a resolution June 18 to place the operating referendum on the Nov. 3 ballot.

The proposed ballot question would authorize an additional property tax rate of no more than 25 cents per $100 of assessed value, with a maximum annual amount not exceeding $499,000. The referendum would last no more than eight years.

The district emphasizes that 25 cents is the maximum rate that could be imposed, not necessarily the rate taxpayers would pay each year.

According to information provided by Shakamak, district officials currently believe they 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.

The ballot language is required to show the estimated taxpayer impact at the maximum proposed rate and levy. For a median residence with an assessed value of $100,000, the ballot language estimates the property tax increase at $81 annually at the maximum.

District informational materials also provide an estimate based on what they describe as the average taxpayer. At the maximum 25-cent rate, the estimated impact is approximately $66 per year, or $5.50 per month. At a 15-cent rate, the estimated impact is approximately $40 per year, or $3.30 per month.

Why Shakamak says the referendum is needed

According to information provided by the district, changes in Indiana school funding, including SEA 1, are reducing local revenue available for daily school operations while expenses continue to rise.

Shakamak cites reduced taxable assessed valuation, rising transportation, utility, insurance and employee benefit costs, unfunded mandates and circuit-breaker losses, and limited local revenue growth in a small rural school district among the financial pressures it faces.

District figures show property and casualty insurance expenses increased from $55,434 in 2020 to $112,184 in 2025, a 102% increase. Health insurance costs increased from $670,312 in 2021 to $1,114,717 in 2025, an increase of 66%.

Utility costs increased from $249,335 in 2020 to $263,468 in 2025, while the district estimates the cost to replace a school bus at approximately $165,000 and rising.

Shakamak also projects declines in its net assessed value per student during several of the coming years. The district says a smaller taxable base means less local revenue for daily operations if tax rates remain unchanged.

How the money could be used

If voters approve the referendum, the additional revenue would be restricted to operating expenses.

According to the district, referendum funding could be used to maintain daily educational operations; recruit and retain teachers and staff; support school safety initiatives; preserve manageable class sizes; and maintain academic programs and opportunities for students.

The district says referendum money would not be used for new building construction, major facility expansions, athletic facility construction or capital improvement projects funded through debt or bonds.

Shakamak also says it has taken steps to address its financial outlook before pursuing the referendum, including monitoring the effects of SEA 1 since 2025, conducting long-term financial forecasting, reviewing staffing and expenditures, using attrition and efficiency measures, seeking grants and additional revenue opportunities, and consulting with Policy Analytics, Baker Tilly and legal counsel.

If the referendum passes, the district says the additional revenue would help maintain staffing, educational programs, safety initiatives, class sizes and daily operations.

If it does not pass, district officials say they would continue evaluating reductions, efficiencies and other financial decisions that could affect staffing, programming and operations.

Two opportunities to learn more

The district describes the upcoming sessions as part of its effort to make information available to voters before the November election. Its Sept. 5 announcement says the meetings are intended to provide residents with factual information and an opportunity to have their questions addressed.

The upcoming sessions are:

Tuesday, Sept. 15, 6 p.m. — Lebanon Church, Midland

Monday, Oct. 19, 6 p.m. — Shakamak High School Library, Jasonville

Residents may submit questions before the meetings through the district's online form: Submit a referendum question to MSD of Shakamak

Additional information about the sessions is available through MSD of Shakamak's announcement.

Voters within the MSD of Shakamak will make the final decision on the referendum in the Nov. 3, 2026, election.