Understanding Carmel Clay Schools Referendum
Updated: 2 hours ago
Intern Mary, is back explaining the CCS Referendum, why it matters, why it's political, and what the actual impact is. Hint: it's not what the headlines might lead you to believe.
Quick Overview: Vote 'Yes' to support schools, students, teacher, and our community.
Understanding Carmel Clay Schools Referendum
To understand why school referendums are necessary and what they accomplish, it helps to first understand how Indiana public schools are funded.
How Public Schools Are Funded
Public schools don’t just get one big pot of money. Instead, funding comes from three main sources:
State Funding Formula: Every student brings in a base amount of state funding calculated to cover basic instruction. Districts receive additional funding for students with special needs, English learners, or children from low-income families.
Local Property Taxes: These tax dollars support teacher salaries, student transportation, safety initiatives, extracurricular activities, and facility maintenance.
Federal Funding: A smaller portion of overall funding, Usually tied to specific targeted programs like subsidized school meals.
The formula is designed to be fair, but it doesn’t cover everything. That’s where referendums come in.
Where Referendums Fit In
A referendum is a public vote allowing local communities to give school districts permission to get additional property tax funding beyond state-mandated caps.
There are three types:
Operating Referendums: Cover daily operations such as staff salaries, busing, and classroom resources.
Safety Referendums: Fund security personnel, School Resource Officers, and mental health programs.
Capital/Construction Referendums: Finance major projects such as facility renovations or new school construction.
Without referendums, districts may face cuts in staff, programs, or safety measures.
Why Carmel Clay Schools Proposed a Referendum
SEA 1 Property Tax Cuts
In 2025, Indiana Republicans passed Senate Enrolled Act 1 (SEA 1), which lowered property taxes for homeowners by increasing deductions and credits.
This law cut school revenue statewide.
Voucher Programs
Indiana’s Choice Scholarship Program allows families use state money to attend private schools.
When students leave CCS with vouchers, the state funding follows them.
CCS loses per‑student dollars but still has to pay for teachers, buses, and buildings.
Funding Formula Gaps
The state formula covers basic instruction, but not:
Competitive teacher salaries
Safety and mental health programs
Extracurriculars like sports and arts
Building maintenance and upgrades
Local Property Tax Caps
Schools already get money from property taxes, but Indiana law caps the base rate.
CCS cannot raise more money on its own.
A referendum is the only legal way to add or make up for lost funding.
What Ballot Language Includes
Indiana law requires referendum ballot language to contain specific details so voters know exactly what they’re approving. You’ll usually see:
Purpose statement > What the money will be used for (operating costs, safety, capital projects).
Maximum tax rate > Shown as “$0.XX ( whatever amount of cent ) per $100 of assessed value.” This is the maximum the district can collect.
Duration > How many years the referendum will last (often 8 years).
Estimated annual revenue > How much money the district expects to raise each year.
Median home impact > The estimated dollar amount a typical homeowner would pay annually.
Understanding the language:
The ballot always shows the maximum rate.
The school board can set the actual rate lower during the annual budget process.
But they can never go above the voter‑approved maximum without another referendum.
So the rate fluctuates year to year up to the approved max.
Assessed Value Explained
Every property (like your home) has a market value; what it could sell for.
The county assessor calculates an assessed value (AV), which is usually a percentage of the market value.
Property taxes are based on this assessed value, not the full market price.
What the New Referendum Does
Replaces the current operating (19¢) and safety (5¢) referendums.
Sets a maximum of $0.4274 per $100 assessed value for 8 years.
Expected to raise ~$47 million in 2027, with a maximum of $61.9 million annually.
What does this look like for Carmel Clay?
Carmel Clay says the new proposed referendum rate is $0.4274 per $100 AV.
When a referendum says $0.4274 per $100 of assessed value, it means:
For every $100 of assessed value, you pay .4274 cents in tax.
That gives you the annual tax impact.
For a median $500,000 home, CCS estimates an impact of roughly $1,062 per year once the new referendum is fully phased in.
The actual dollar impact depends on your home’s assessed value after deductions.
This is why ballot language always includes an example for a “median‑value home” so voters can picture the real cost.
The Reality:
The Actual Reality: Because this referendum replaces the existing $0.19 + $.5 rate rather than adding to it, the net impact for taxpayers is substantially smaller than the headline ballot figure suggests. For example if the new rate is $.42 then we really are only going to have a $.18 increase.
Comments