School Funding Crisis in Northwest Indiana Amid Property Tax Reforms

School superintendents in Northwest Indiana face a severe financial crisis. If local referendums don’t pass on Election Day, November 3, districts will struggle financially. Senate Enrolled Act 1 (SEA 1) limits schools’ reliance on property taxes for funding, leaving administrators with no option but to seek taxpayer support to avoid cutting staff, transportation, extracurricular activities, and more.

SEA 1, enacted in 2025, revamped the property tax system. It offers taxpayers $300 savings on tax bills but reduces local governments’ revenue by $1.4 billion through 2028. Consequently, schools now receive less property tax revenue, impacting their budgets. Indiana schools now have to place referendums on ballots to raise property taxes.

In Northwest Indiana, several school corporations face this challenge. In Lake County, Tri-Creek, River Forest, Crown Point, and Whiting, and in Porter County, Porter Township and Union Township, are all holding referendums this November.

Impact of SEA 1 on Schools

“Positioned as property tax reform, SEA 1 significantly cuts funds for school corporations and municipal bodies, with reductions growing annually through 2031.” – Indiana Coalition for Public Education (COPE)

According to COPE’s 2025 study, 65.3% of school corporations have reduced or plan to reduce support staff, 55.8% have cut or will cut teaching staff, and 40.8% have limited facilities improvements.

Since SEA 1’s implementation, funding shortfalls have left districts across Indiana scrambling. Some districts have incurred extra obligations and costs without additional resources, all while managing rising expenses in insurance, utilities, IT infrastructure, and school safety.

Tri-Creek School Corporation’s Dilemma

Tri-Creek’s Superintendent Andy Anderson wants to maintain current funding by requesting a temporary property tax increase to replace lost revenue. Without the referendum, they may eliminate bus service and cut sports and extracurricular programs. “The state put us in this position,” Anderson stated. Tri-Creek failed a similar referendum in 2023 but hopes for more community support now.

Anderson emphasized, “A community lacks appeal without essential services like bus routes.” He argued that a weakened school district would hurt property values, further shrinking tax revenues.

River Forest Community School Challenges

Superintendent Kevin Trezak highlighted the need to renew a 2019 referendum to prevent drastic measures like eliminating bus service. If not renewed, River Forest won’t afford utility bills by 2028. Trezak remains hopeful, citing past community support but acknowledges the risk of failure.

Crown Point Community School Corporation’s Strategy

Superintendent Todd Terrill noted that the referendum would increase taxes on a $350,000 home. Despite opposition, Terrill’s team focuses on campaigning to ensure continued student opportunities. “We must venture into politics to secure funding,” Terrill stated.

Past successes offer some optimism. Still, failure might cut numerous education positions and programs.

Whiting’s Dual Referendums

The School City of Whiting tackles two referendums: $24 million for operations and $35 million for infrastructure. Superintendent Dave Verta highlighted the funding dilemma due to the district’s size. “Whiting schools got more funds per student in 2006 than now,” he lamented. Further losses by 2028 could force staff and service cuts.

Union Township’s Cautious Approach

Superintendent Leigh Barnes proposed a moderate tax rate increase, intending a careful annual review. Without the referendum, Union Township won’t maintain stable budgets, Barnes argued.

The focus remains on educational quality and adequate resources, vital for rural areas where bus service cuts impact severely.

Porter Township Financial Struggle

Porter Township faces doubling bus times or cutting routes if the referendum fails. Superintendent Stacey Schmidt noted severe budgeting implications. “We handle the lowest state funding,” she stated, emphasizing past budget cuts as insufficient.

Community resilience offers hope for upcoming challenges, where public understanding might sway the referendum’s outcome.