Question 1

What is an operating referendum, and why is Tipton Community School Corporation asking for one?

Accepted Answer

An operating referendum allows voters to approve additional local property-tax revenue to support the day-to-day operation of their schools. Tipton Community School Corporation is asking voters to approve an eight-year operating referendum because recent changes in Indiana property-tax law are significantly reducing the local revenue available to the school corporation. Those changes come primarily from Senate Enrolled Act 1, commonly called SEA 1. The law provides property-tax relief through new and expanded deductions and credits, but those changes also reduce the property-tax revenue received by local governments and schools. For Tipton Community School Corporation, financial projections estimate approximately $900,000 to $1.2 million in annual lost revenue from 2027 through 2031 from unfunded credits alone. The referendum would provide up to $2 million annually to help Tipton Community School Corporation respond to those losses while supporting and retaining teachers and staff, maintaining class sizes and academic programs, and supporting essential student health, safety, and transportation services.

Question 2

What is SEA 1, and how does it affect Tipton Community School Corporation?

Accepted Answer

SEA 1 is a property-tax law enacted by the Indiana General Assembly in 2025. The law makes a number of changes to the way property taxes are calculated. Among them, it increases homestead deductions over time, creates new deductions for other residential and agricultural property, provides a new homestead property-tax credit, changes the treatment of some business personal property, and makes other changes to deductions and assessments. Those provisions provide tax relief to property owners by reducing taxable assessed value or providing credits against property-tax bills. But when taxpayers owe less, local taxing units also collect less. For Tipton Community School Corporation, the financial impact grows as SEA 1 is phased in. Current projections estimate the school corporation will lose approximately $900,000 to $1.2 million annually from 2027 through 2031 from unfunded property-tax credits, directly reducing funding available for school operations. That loss is expected to continue beyond 2031.

Question 3

If SEA 1 was intended to lower property taxes, why is the school asking voters for a referendum?

Accepted Answer

That's an understandable question. SEA 1 provides property-tax relief in part by reducing the amount taxpayers owe. But those reductions also mean less property-tax revenue is available to Tipton Community School Corporation. In other words, the tax relief doesn't come with replacement funding from the state to make the school corporation whole. Tipton Community School Corporation was already managing financial pressures including declining enrollment and rising operating costs. SEA 1 accelerates that challenge by reducing local property-tax revenue beginning in 2026 and continuing as the law is phased in. The district's financial analysis concluded that there are two things Tipton Community School Corporation can control: continue reducing costs and ask local voters to consider an operating referendum. The analysis found that both are needed to maintain long-term financial stability. The referendum allows Tipton voters to decide whether to locally replace a portion of the revenue being lost and protect the teachers, class sizes, programs, transportation, and other services students currently receive.

Question 4

Why does the ballot say this will "increase" property taxes?

Accepted Answer

Indiana's required ballot language describes an operating referendum as an increase in property taxes and shows the maximum referendum rate that voters are being asked to authorize. For Tipton, that maximum rate is $0.2488 per $100 of assessed value, with a maximum annual amount of $2 million. Those are maximum amounts. They should not be confused with either the actual referendum rate that may be used in a particular year or the change a homeowner will see in their overall property-tax bill. SEA 1 makes that distinction especially important because the law simultaneously changes deductions and provides credits that affect what taxpayers actually owe. That's why the number printed on the ballot and the actual change in an individual homeowner's total property-tax bill can look very different.

Question 5

Why does the ballot use a $200,000 home when Tipton's actual median home value is about $180,600?

Accepted Answer

The ballot is required to include an example showing the estimated referendum impact on a median-value residence. Indiana's required calculation rounds the median assessed value up to the next $50,000 increment. Tipton's actual median assessed value is approximately $180,600, so the ballot is required to use $200,000 for its example. Using that required calculation, the ballot states that a $200,000 residence would see an annual property-tax increase of $216. That does not mean Tipton's actual median-value home is $200,000. The higher number is used because of the required rounding method for the ballot calculation.

Question 6

Does the $215 shown on the ballot include the deductions and credits put in place following SEA 1?

Accepted Answer

No. The $215 figure is the referendum impact calculated for the $200,000 residence used in the required ballot example. It does not show the full effect of the new property-tax deductions and credits put in place following SEA 1 on a homeowner's overall tax bill. For comparison, Tipton's actual median assessed-value home is approximately $180,600. The referendum itself is projected to cost that homeowner approximately $15 per month. After the new deductions and credits are applied, however, the estimated net change in that median homeowner's overall 2027 property-tax bill was projected at approximately $114 for the year — less than $10 per month. Those are two different calculations: Referendum impact: What the referendum itself adds. Net property-tax impact: What happens to the overall bill after the referendum and applicable SEA 1 deductions and credits are considered together. That distinction is important when comparing the ballot example with what an individual taxpayer may actually experience.

Question 7

What will the referendum actually cost me?

Accepted Answer

Every property is different. The actual impact depends on the property's assessed value, property type, applicable deductions and credits, and the referendum rate established for that year. The Impact Calculator available through the website navigation provides a more complete estimate for an individual property. Unlike the statutory example printed on the ballot, the calculator will reflect the impact after applying the applicable deductions and credits put in place following SEA 1. Because individual property circumstances vary, calculator results are estimates and actual tax bills may differ.

Question 8

Why is the maximum referendum rate $0.25?

Accepted Answer

SEA 1 changes the property-tax base over several years. As deductions increase, the same tax rate can generate less revenue. For that reason, the ballot establishes a maximum referendum rate of $0.25 per $100 of assessed value for the eight-year referendum. The important word is maximum. The ballot establishes the highest rate that may be used. It does not mean that Tipton Community School Corporation must levy the full $0.25 every year. The district's financial analysis was built around generating up to $2 million in annual referendum revenue while accounting for changes in assessed value and the continuing phase-in of SEA 1.

Question 9

Who decides the referendum rate each year?

Accepted Answer

The ballot establishes the maximum rate voters may authorize. It does not require that the maximum be collected every year. The actual referendum levy and rate are addressed through Tipton Community School Corporation's annual public budgeting process. That gives the district the ability to consider its financial needs, assessed values, state funding, SEA 1 impacts, and other available revenue as the budget is developed each year. If conditions change, the maximum ballot rate does not automatically have to be collected simply because voters authorized it.

Question 10

How much money would the referendum provide?

Accepted Answer

The referendum would authorize Tipton Community School Corporation to collect no more than $2 million annually for no more than eight years. The ballot describes the purpose as sustaining educational and operational funding stability in response to reductions in property-tax revenue. This is a maximum annual amount, not authorization to collect more than $2 million per year.

Question 11

Where does the referendum money go?

Accepted Answer

Indiana school finance separates school revenue and expenses into different funds. The Education Fund primarily supports student instruction and learning. The Operations Fund supports non-instructional operating expenses such as transportation, utilities, custodial services, maintenance, and other costs necessary to operate the schools. The Debt Service Fund is used for debt obligations associated with major capital and facility projects. An operating referendum provides a separate local source of revenue intended to help support the educational and operational purposes described in the referendum question.

Question 12

What will Tipton Community School Corporation use the referendum funding for?

Accepted Answer

The referendum question identifies the purposes voters are being asked to support. They include: • Supporting and retaining teachers and staff • Maintaining manageable class sizes • Maintaining academic programs and student opportunities • Supporting essential student health and safety services • Supporting transportation and other essential operations This is primarily about protecting the people, programs, and services Tipton students already have — not creating a large collection of new programs.

Question 13

Why doesn't the state simply replace the revenue Tipton Community School Corporation loses because of SEA 1?

Accepted Answer

Indiana schools receive state funding primarily through a per-student funding formula established by the General Assembly. Local property-tax revenue is a different source of funding and is particularly important to school operations. SEA 1 reduces local property-tax collections through its changes to deductions, credits, assessments, and taxable value. Those reductions are not automatically replaced dollar-for-dollar with additional state funding for Tipton Community School Corporation. That is why the district's financial projections show declining cash balances as the effects of SEA 1 grow. An operating referendum is one of the tools Indiana law gives local voters to decide whether they want to provide additional local funding for their schools.

Question 14

If enrollment is declining, shouldn't Tipton Community School Corporation simply spend less?

Accepted Answer

Tipton Community School Corporation has been adjusting expenses as enrollment has changed. The district's financial projections assume enrollment will continue to decline and incorporate that reality into the budget. But school expenses do not decline dollar-for-dollar when enrollment declines. Tipton Community School Corporation still operates an elementary school, middle school, and high school. It still needs teachers for classrooms, buses and drivers to transport students, nurses and safety personnel, utilities, maintenance, technology, and the staff required to operate the schools. The district's financial analysis concluded that continued cost reductions are necessary — but reductions alone are not enough to maintain long-term financial stability after the additional revenue losses created by SEA 1. That's why the financial plan includes both cost reductions and referendum revenue.

Question 15

Has Tipton Community School Corporation already reduced spending?

Accepted Answer

Yes. Tipton Community School Corporation has already made staffing and other expense reductions and has continued examining additional ways to control costs. Those efforts began before the referendum and are part of the district's long-term financial planning. The referendum is not being proposed instead of reducing expenses. The financial analysis presented to the School Board concluded that the district has two primary tools available to address its projected financial challenge: cost reductions and an operating referendum — and both are needed.

Question 16

Why can't Tipton Community School Corporation just make more cuts?

Accepted Answer

Additional reductions are possible. The question is what those reductions would mean for students. Personnel is the largest part of operating a school system. Eventually, reductions large enough to close a recurring funding gap affect the people and services students and families interact with every day. Without additional funding, Tipton Community School Corporation would have to consider reductions that could affect teachers and staff, class sizes, transportation, school nurses and student services, academic programs, agriculture, choir, and other student opportunities. The referendum provides an alternative to making reductions that could fundamentally change the educational experience Tipton students receive.

Question 17

Why can't construction money be used to pay teachers or cover operating expenses?

Accepted Answer

Indiana school finance separates the money used for major capital projects and debt from the money used for day-to-day educational and operating expenses. Major facility projects are generally financed through the Debt Service Fund. Those dollars cannot simply be redirected to solve an operating shortfall or pay classroom expenses such as teacher salaries. That's why Tipton Community School Corporation can be making needed facility improvements while simultaneously facing financial pressure in the funds that support people, transportation, utilities, and other day-to-day operations. No teaching position is created or eliminated simply by moving money out of a construction project, because those funding sources serve different purposes under Indiana's school-finance structure.

Question 18

What happens if the referendum doesn't pass?

Accepted Answer

If the referendum does not pass, the SEA 1 revenue reductions still occur. Tipton Community School Corporation would therefore have to rely much more heavily on spending reductions as those losses grow. Potential impacts identified during the district's planning include fewer teachers and staff, larger class sizes, reductions to nurses and student services, changes to academic and extracurricular programs, and significant changes to transportation. One transportation scenario examined during the referendum planning process could result in bus transportation times doubling or bus service being eliminated. The exact reductions would ultimately be decisions for the Tipton Community School Corporation Board of School Trustees. But the underlying financial problem does not disappear if the referendum fails. The district would have substantially less revenue available to maintain the current level of services.

Question 19

Who pays the referendum tax?

Accepted Answer

Property taxpayers within the Tipton Community School Corporation boundaries pay the referendum tax. That includes residential, agricultural, commercial, industrial, rental, and other taxable property. The referendum rate is applied to taxable assessed value after applicable deductions. Property owners may also qualify for credits that reduce their final property-tax liability. Indiana law does not allow a school operating referendum to apply only to families who currently have children enrolled in the schools.

Question 20

How would the referendum affect farmland?

Accepted Answer

Based on Policy Analytics’ projections, the referendum is expected to cost approximately $4 per acre of farmland in the first year. As the property-tax changes in SEA 1 continue to phase in, that impact is projected to decline to nearly $3.50 per acre over the following four years.

Question 21

How would the referendum affect businesses?

Accepted Answer

Business property is also affected differently than residential property. SEA 1 made significant changes affecting business personal property, including increasing the exemption threshold for certain business personal property and changing how some new business personal property depreciates for tax purposes. Because businesses vary significantly in real estate value, equipment, deductions, exemptions, and other circumstances, there is not one representative example that accurately describes every Tipton business.

Question 22

Will teachers receive raises if the referendum passes?

Accepted Answer

The referendum is intended to help Tipton Community School Corporation support and retain quality teachers and staff and remain competitive with nearby school corporations. District financial projections include assumptions for future salary and benefit increases, but passage of the referendum does not automatically guarantee any particular raise to any employee. Compensation decisions will continue to be made through the district's normal budgeting, collective bargaining, and School Board processes.

Question 23

Why should someone without children in Tipton schools support the referendum?

Accepted Answer

Strong schools affect the entire community. Tipton Community School Corporation is one of the county's largest employers. Its schools help prepare the local workforce, support local families, contribute to property values, and play an important role in Tipton's identity and quality of life. The school corporation also provides opportunities that benefit the broader community while preparing young people for college, careers, and life. Strong schools help make Tipton a community where families want to live, businesses can find qualified employees, and people want to invest. The referendum is an investment in students — but also in the long-term strength of Tipton.

Question 24

How long would the referendum last?

Accepted Answer

The referendum may continue for no more than eight years. The authority provided by this referendum expires at the end of that period. Any referendum funding beyond that period would require another public process and voter approval.

Question 25

Who can vote on the referendum?

Accepted Answer

Registered voters who reside within the Tipton Community School Corporation boundaries are eligible to vote on the referendum. The question will appear on the November 3, 2026 general election ballot for eligible voters within the school corporation. A majority of the votes cast on the referendum question must be YES for it to pass.

Question 26

Why can't Tipton Community School Corporation campaign for the referendum?

Accepted Answer

Indiana law restricts the use of public school resources to advocate for or against a referendum. Tipton Community School Corporation can provide factual information about the referendum, its finances, the ballot question, and the potential consequences of the decision. Advocacy asking voters to vote YES must come from an independent campaign organization rather than the school corporation. School employees may participate in campaign activities on their own time just like other members of the community, but school resources and work time cannot be used for campaign advocacy.

Question 27

Who is Friends of Tipton Schools?

Accepted Answer

Friends of Tipton Schools is the independent community campaign supporting passage of the Tipton Community School Corporation operating referendum.

Campaign expenses are paid for with private campaign contributions, not school tax dollars.

Donations made through this website support Friends of Tipton Schools and the referendum campaign. They do not fund Tipton Community School Corporation academic programs, technology, facilities, or other school corporation expenses.

PAID FOR BY THE FRIENDS OF TIPTON SCHOOLS. FRIENDS OF TIPTON SCHOOLS ARE THE PARENTS, TEACHERS, AND CONCERNED CITIZENS WHO BELIEVE IN OUR SCHOOL SYSTEM. NO TAX DOLLARS USED. BILL WHITE, CHAIRMAN, JACOB HEARD, TREASURER

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