A school corporation may conduct a referendum to create a property tax levy for purposes of supplementing the revenue it receives from the state funding formula. The Valparaiso Community Schools (VCS) Board of Trustees passed a resolution that states that the proposed referendum would be used to supplement existing revenues received from the state of Indiana for the purpose of managing class sizes and essential health & safety initiatives, retaining teachers and staff, and funding academic and educationally related programs.
An operating referendum creates an additional levy that goes into a special fund titled “referendum fund” for a period not to exceed eight years. However, a referendum tax rate may be re-imposed or extended under the law if approved by the voters of the district.
The reduced rate referendum is a renewal of a referendum passed by voters in the VCS district in 2015. In order to renew the referendum, Indiana law requires Valparaiso Community Schools hold the election in 2022. The maximum tax rate on the ballot in the November election is over one-fourth (27%) lower than the tax rate the school requested in 2015. In May 2022, VCS will be voting to extend the referendum for up to another 8 years.
The revenue is collected by the county through the property tax bills of property taxpayers in the school district. The money does not pass through the state, but goes directly to the school for the purposes of supplementing the education and operation funds of the school corporation. The education fund pays for faculty and staff.
The referendum is only on the ballot of voters registered to vote in the VCS district (Center Township.) Registered voters living outside of the VCS district will not be voting on the referendum. The reduced referendum tax rate will take effect only if a majority of the voters vote “Yes” to the ballot question. If it passes, the reduced referendum rate goes into effect next year.
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