The MCCSC is officially seeking a 2022 referendum. Here's what you need to know about it.
After months of community meetings and informational sessions, the Monroe County Community School Corp. voted Tuesday to place a 2022 referendum on the November ballot.
As November approaches, the corporation plans to ramp up its advocacy for the referendum. This will include forming a political action committee and door-to-door campaigning.
Here’s what to know about the MCCSC referendum before heading to the polls in November:
What is a referendum, and why does MCCSC need one?
A referendum is a public question that a local unit places on a ballot. In terms of schools, voters decide whether to allow an increase in property taxes to supplement school funds.
School referenda can be used for purposes such as construction projects or increasing teacher salaries. The MCCSC’s referendum is for its operations fund, which means it pays for teacher and staff salaries and student programs but not for building renovations.
The MCCSC's current referendum, which was passed in 2016, is set to expire this year. The corporation has relied on referendum funds since 2010, when then-Gov. Mitch Daniels ordered the state education budget be cut by $300 million and the MCCSC was forced to lay off more than 60 teachers.
When the 2010 referendum passed, MCCSC restored much of what was lost in the initial cut and added programs and resources. The additional funding from a special property tax rate of up to 14 cents per $100 of assessed valuation was approved for six years.
Again, in 2016, voters in the MCCSC district approved a referendum that has helped fund the school system. The additional funding from a property tax rate of 11.5 cents per $100 of assessed valuation runs through the end of this year.
Since 2010, referendum funds have brought in about $7.3 million annually.
What will the MCCSC referendum pay for?
If the 2022 referendum passes, about 93% of the funds will go toward salaries and wages, MCCSC Superintendent Jeff Hauswald said.
It does not fund principal or superintendent salaries or building renovations or repairs. It also does not go toward the school board or anyone outside of the schools.
With the referendum funds, each teacher would get a $4,500 raise. This would put starting teacher salaries close to $50,000 a year, and top-earning teachers would earn about $85,000 a year.
Additionally, support staff would get an additional $2.25 an hour, bringing the minimum hourly wage to about $15 an hour. This would also bring the starting pay for bus drivers to about $23 an hour, which would be one of the highest rates in Indiana.
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Referendum funds would also provide about $1.2 million a year to performing arts and STEM programming, special education services and additional support services. This includes about $400,000 a year for staff such as guidance counselors and social workers.
What will the MCCSC referendum cost me?
The MCCSC is seeking a new referendum rate of 18.5 cents per $100 of assessed valuation.
If the proposed referendum rate passes, the average Monroe County home — one with a market value of about $217,000 — would see a $125 yearly increase in property taxes.
Adam Terwilliger, MCCSC’s assistant director of business operations, compared the increase to a weekly cup of coffee, 12 medium pizzas a year or a basic monthly Netflix membership fee.
This rate is higher than previous years but accounts for inflation, Hauswald said.
What happens if the MCCSC referendum doesn’t pass?
If voters don’t approve another referendum this year, without some serious cutbacks, the district's finances will be in the red within two years.
The corporation is already losing a significant number of teachers — especially those in their first five years of teaching — to the private sector and public school districts with more competitive pay, Hauswald said.
“We get a lot of rejections because our wages are simply not quite high enough,” he said.
The MCCSC already has about 120 staff vacancies. If the referendum doesn’t pass, at least 100 more positions will be cut. Student programs such as performing arts and STEM will also lose funding or be cut entirely, and class sizes would likely increase due to a shortage of teachers.
What will the MCCSC referendum look like on the ballot?
The phrasing will look different — and more confusing — than in 2010 and 2016.
Indiana lawmakers changed the law in 2021 to require new referendum language on ballots. Instead of presenting the referendum increase as a dollar amount, it will be presented as a percentage.
This means the referendum will likely be stated on the ballot as a 35% increase.
This can be misleading, Hauswald said, because the county already has a low tax rate.
When Hauswald explained the issue at a meeting last month, he compared the MCCSC to a 50-pound calf and other school districts with higher tax rates to a larger calf.
If a 50-pound calf gained 20 pounds, its weight would increase by 40%. But if a 100-pound calf gained 20 pounds, its weight would only increase by 20%.
Are other Indiana schools passing referenda?
Yes. This past election cycle, eight Indiana school districts attempted to pass referenda. Six passed. The two that failed, Franklin Township and Vigo County, were only seeking to fund construction or renovation projects.
Five districts — Perry Township, Edinburgh Community Schools, Griffith Public Schools, Mt. Vernon Community Schools and Valparaiso Community Schools — were seeking operational referenda for purposes such as pay raises and smaller class sizes. One district, Lebanon Community Schools, was seeking funding for both purposes.
Contact Christine Stephenson at cstephenson@heraldt.com.
This article originally appeared on The Herald-Times: What Monroe County voters need to know about the 2022 MCCSC referendum
