Schools Eye Property Tax Referendum

(posted 8.30.09)

Speedway voters could be looking at a referendum by the May 2010 primary election to decide if they want to pay additional property taxes to fund Speedway Public Schools.

Superintendent Ken Hull explained the school's financial problems are worse than he projected, and an increase in property taxes may be the only viable solution.

Hull said the school system can no longer run with its deficit, brought on by the reassessment and new property tax caps. If a referendum passed in May, money from taxes would arrive by January 2011, just about the time the schools would be hitting financial rock bottom.


“The biggest thing we fought off last year was consolidation, and when consolidation wouldn't happen politically, now it's being looked at financially,” Hull said.

During the August 13 school board meeting, Hull talked for nearly two hours about the severity of the school's financial situation. He said the town's latest estimated net assessed value was $593 million, down from $812 million in 2005.

The school district's problems are not all due to property tax legislation. The district is also expected to lose about $700,000 in student funding from lower enrollment. The lower enrollment at Wheeler Elementary is due to a higher vacancy at International Village, but Hull had no data to explain why enrollment in the other schools is lower than his worst case projections.

He expected the district might have to start making personnel cuts within the year. He tossed out other options of consolidating the elementary schools and ending sports programs, but doubted these proposals would gain support.

Hull recommended a marketing campaign to inform the public that all options have been looked at before suggesting a property tax referendum. School Board President Tom Smith agreed that it would take community support to educate Speedway taxpayers who do not have children enrolled in school that raising taxes would be a positive step.

The school board's budget hearing is set for September 8 at 7:30 pm in the high school's board room.