Why Are So Many School Referendums on Indiana Ballots This Year?
10/08/2026

A record 38 Indiana school districts have referendum questions on the ballot this November, far more than voters typically see in an election. Most are seeking funding for everyday operating expenses, including staffing, transportation and student programs.

So why the big jump in numbers? It comes down to several factors: inadequate state funding, recent property tax reforms, inflation-driven cost increases for schools and recent legislative changes that limit when schools can hold ballot referendums.

Strained school budgets aren’t new. Indiana currently ranks 40th in the nation in per-student spending. However, some of the current pressures are new. The legislature’s property tax reforms last year reduced the property tax revenue schools were expected to receive, with those revenue losses projected to continue in the coming years. At the same time, districts continue to face rising costs for salaries, transportation, insurance, utilities and other expenses. State law also now limits school referendums to November general elections in even-numbered years.

The debate is also more organized this year. A pro-private school voucher special interest group financed by out of state billionaires has launched a statewide campaign opposing school referendums through paid advertising, local events and materials for activists. That makes it especially important for voters to understand what their local referendum actually does.

What does a referendum do?

An operating referendum allows local voters to approve additional property tax revenue for their school district. The General Assembly established the modern referendum system as part of major property tax and school funding changes in 2008. Those changes shifted responsibility for school general fund tuition support from local property taxes to the state. At the time, ISTA was told by lawmakers that having the state assume that responsibility would provide more reliable funding and that public schools would be fully funded. Instead, state funding has not kept pace with the needs of public schools, while lawmakers have continued to fund and expand other priorities, including private school vouchers and charter schools.

Referendums have increasingly become the mechanism lawmakers point to when local schools need resources beyond what the state provides. Many districts on the ballot this year are asking voters to continue or replace funding they already receive, not to create entirely new programs. In some communities, state law also requires a portion of referendum revenue to be shared with eligible charter schools serving students who live within the district.

How would it affect my taxes?

For districts that already have a referendum, state law requires ballot language to calculate the tax impact as though the existing referendum does not exist. That can make things confusing and the number on the ballot much larger than the actual change from what residents pay today.

In Noblesville, for example, the ballot shows a $955 annual impact for the average homeowner. Because residents already pay an existing referendum tax, the district says the actual increase for an average $350,000 home would be about $22.56 per year.

What happens if a referendum fails?

The effects can reach directly into classrooms. Noblesville Schools says losing its referendum revenue could mean staff reductions, larger class sizes, program cuts and possibly an elementary school closure. After Tri-Creek voters rejected a referendum in 2023, the district eliminated about 10% of its staff, reduced curricular materials and capped class sizes.

The record number of referendums also raises a larger question for the next budget-writing session in January. In many communities, these referendums are not about adding new programs. They are about maintaining the educators, programs and services students already have. ISTA believes our students and communities deserve better. Lawmakers should prioritize finding ways Indiana’s school funding and property tax policies can provide public schools with more stable, sustainable funding.

Make your voice heard on school funding at the ballot box by making a plan to vote and by contacting your lawmakers and telling them to make funding for public schools a priority in the next state budget.