Indiana's Property Tax Cap, Explained

Background

Indiana voters passed an amendment to the State Constitution by referendum in 2010 which made permanent changes to the local property tax formula.

The measure limited local property tax rates to one percent for residential homesteads, two percent for commercial property and second homes, and three percent for industrial and agricultural property. Tax rates set through referendum are exempt from the prohibition. If a school’s tax rate exceeds the cap, then the shortfall must be made up by other entities in the taxing group — for example, the city, township or county.

Governor Mitch Daniels proposed and designed the amendment, which effectively limits the amount local governments and schools can raise by issuing bonds and debt without turning to voters for approval. More than 70 percent of voters cast ballots in favor of the amendment.

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October 4, 2012

Video: Explaining Indiana School Budgets

Understanding the “silos” in Indiana school districts’ budgets is important.

September 20, 2012

‘The Pain Is Not Over’ For Indiana District Hit By Tax Caps & Busing Controversy

A reconstituted state panel held its first meeting Thursday to look at the budgets of three financially-troubled school districts.

May 8, 2012

Voters Say ‘Yes’ To Six Of Seven School Issues On Tuesday’s Ballot

Fort Wayne Board of Trustees Vice President John Peirce breathed a sigh of relief as results came in Tuesday night. Voters approved a $119 million construction referendum 2 to 1 at the polls. “It’s an affirmation of the achievements and hard work of teachers and administrators have put into improving the academics in our schools,” [...]

What’s At Stake For Indiana Schools In Tuesday’s Election

Rusting pipes in the basement of Snider High School would be replaced if voters in the Fort Wayne Community School District approve $119 million in building projects and infrastructure repairs. More than half of the district's 51 school facilities would receive upgrades if the referendum passes.

Voters in Fort Wayne Community Schools, Indiana’s second-largest school district, are weighing in on a $119 million construction referendum that would pay for building projects at 36 of the district’s 51 schools, upgrading HVAC systems, replacing windows and restoring the masonry. “I wouldn’t even call them improvements,” said John Peirce, vice president of the Fort [...]

March 27, 2012

The Good News & Bad News About The End Of Franklin Township’s Busing Fees

They caused traffic jams, drove parents out of the district, and even brought on a lawsuit. They were the most explicit sign of the pressures Indiana school districts felt as a result of the state’s new, constitutionally-enshrined property tax caps. But now, Franklin Township’s “pay-to-ride” school busing fees are a thing of the past — [...]

January 4, 2012

Is Indiana’s Right To Work Bill An Education Issue?

The statehouse's reflection shines in the windows of the building housing the Indiana State Teachers Association, the state's largest teachers union.

Will the right-to-work bill would affect Indiana teachers and schools, or simply crowd out other educationally-relevant issues?

December 8, 2011

Franklin Township Schools Chief: Attorney General Playing Politics With Busing

Traffic jams built up outside Franklin Township schools in August on the first day school busing in the district was no longer free to families.

The AG published an opinion supporting the premise of a lawsuit against Franklin Township for the district’s cancellation of bus service, but superintendent Walter Bourke is standing firm.

November 22, 2011

Franklin Township School Corporation Defends Busing Fees

Franklin Township School Corporation decided to implement the fee in response to cuts in funding from the state. Parents and state officials have repeatedly criticized the move claiming charging for bus service creates a barrier to free public education.

A story from Network Indiana about the ongoing controversy of bussing fees at Franklin Township. Franklin Township will defend its controversial busing fees in court. In a vote of 3-2, the school board voted to go ahead with litigation to defend the district against a suit filed seeking class-action status. The school district partnered this [...]

November 18, 2011

Low Enrollment Brings Letter Grade Results Into Question

North White Primary School has received an A for the last two years. The year before that, the school received a D.

Remember report cards from elementary school? Whole semesters spent filling out worksheets, taking tests, preparing class projects, writing papers– all of it adding up to a final letter grade. But what if instead, all grades were based on a single test? For Indiana’s schools, this is how things are. It’s a predicament which causes superintendent [...]

November 10, 2011

Indiana Attorney General Says Busing Fees Are Illegal

Parents in Franklin Township have accused the district of double taxing for use of bus services.

The Indiana Attorney Generals office issued a legal opinion today. The finding does not have the authority of law, but could be influential in a lawsuit brought against Franklin Township School Corporation.