Voters in the Metropolitan School District of Shakamak will decide Tuesday, Nov. 3, whether to approve an operating referendum that would authorize up to $499,000 annually in additional property tax revenue for the district for no more than eight years.

The proposal would allow the district to impose 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 question on the November ballot.

District officials say the referendum is intended to address financial pressures caused by changes in Indiana's school funding system, rising operational expenses and reductions in local property tax revenue.

What voters will decide

The referendum asks voters whether the district should be authorized to increase property taxes for up to eight years to support operating expenses.

A "yes" vote would authorize the additional tax, subject to the maximum rate of 25 cents per $100 of assessed value and a maximum annual amount of $499,000.

A "no" vote would reject the proposed additional operating tax.

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

According to district officials, current financial projections indicate Shakamak 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.

What would the referendum cost taxpayers?

The ballot language includes an estimated annual property tax increase of $81 for a median residence with an assessed value of $100,000, calculated using the maximum proposed rate.

District officials have emphasized that this figure represents the maximum-rate estimate required for the ballot and does not necessarily reflect the rate the district expects to collect.

Shakamak's informational materials provide additional estimates for what the referendum could mean for property owners.

For what the district describes as the average taxpayer, the estimated annual impact would be approximately $66, or $5.50 per month, at the maximum 25-cent rate.

At a rate of 15 cents, the district estimates the impact would be approximately $40 annually, or $3.30 per month.

Actual increases would vary depending on individual property assessments, applicable deductions, tax caps and the rate adopted by the School Board.

Why district officials say additional funding is needed

According to information provided by Shakamak, changes in Indiana's school funding system, including Senate Enrolled Act 1, are reducing local revenue available for daily school operations while expenses continue to increase.

The district cites several financial challenges, including reduced taxable assessed valuation, rising transportation and utility expenses, increasing insurance and employee benefit costs, circuit-breaker losses and limited local revenue growth.

District figures show 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%.

Utility costs rose from $249,335 in 2020 to $263,468 in 2025.

The district also estimates that replacing a school bus costs approximately $165,000, with costs continuing to rise.

Shakamak officials say these expenses, combined with changes in state funding and the district's relatively small property tax base, have created financial challenges for maintaining existing services and programs.

How referendum funding could be used

If approved, the additional property tax revenue would be restricted to operating expenses.

According to the district, the money 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 student opportunities.

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

Shakamak officials say the referendum is focused on maintaining existing educational operations rather than funding new construction projects.

What happens if the referendum passes or fails?

If voters approve the referendum, Shakamak would be authorized to collect additional local property tax revenue within the approved limits for up to eight years.

District officials say that revenue would help maintain staffing levels, educational programs, school safety measures, class sizes and daily operations.

If voters reject the referendum, the district would not receive the proposed additional tax revenue.

According to district officials, Shakamak would then need to continue evaluating potential spending reductions, operational efficiencies and other financial decisions that could affect staffing, academic programs and daily operations.

The district has said it has already taken steps to address its financial outlook, including long-term financial forecasting, reviewing staffing and expenditures, using attrition and efficiency measures, seeking grants and additional revenue opportunities, and consulting with financial and legal advisers.

Election Day information

The referendum will appear on the Nov. 3 general election ballot for eligible voters residing within the Metropolitan School District of Shakamak.

Polls will be open from 6 a.m. to 6 p.m.

Greene County operates as a vote center county, meaning registered county voters may cast their ballots at any of the county's designated vote centers.

Voters can check their registration status, review their ballot and find voting information through the Indiana Secretary of State's voter portal at indianavoters.in.gov.

For additional information about the referendum, including financial projections, frequently asked questions and the district's referendum calculator, residents may visit the MSD of Shakamak's 2026 referendum information page.

The final decision on whether to authorize the additional operating tax will rest with voters in the school district Tuesday, Nov. 3.