Indiana’s public schools will soon enter a new financial landscape. Senate Enrolled Act 1 (SEA 1) changes how property taxes are calculated, and those changes will affect public school districts throughout the state. Crown Point Community School Corporation is not alone in facing these shifts. Districts large and small, urban and rural, will need to adjust.

SEA 1 was designed to provide property tax relief for homeowners. The law will significantly reduce the net assessed value of homes across Indiana over the next several years. Net assessed value is the taxable amount of a property after deductions. When that value drops, the amount of revenue school districts and other taxpayer-supported entities can raise locally through property taxes drops, too.

Because Indiana school districts rely on property tax revenue for certain core funds, SEA 1 will create multiyear budget constraints. These constraints will start impacting district finances in 2026 and deepen every year through 2031.

SEA 1 reduces two key local funding sources: property-tax revenue for operations and propertytax revenue that supports the Referendum Fund. Because referendum collections are tied to assessed values, when those values fall, the referendum will not generate as much income, even though the community recently voted to renew it.

That’s why CPCSC’s May 2025 referendum renewal, while still essential, will not yield what it was expected to before SEA 1 passed. The voter-approved rate was set in December 2024 (before the legislative session), meaning CPCSC could not accurately predict SEA 1’s future effects. While SEA 1 doesn’t erase the community’s “yes” for the referendum, it reduces the value of that yes.

86% of CPCSC’s expenses in the education, operations, and referendum funds are spent on salaries and benefits for staff. As a service agency, the majority of our funds are spent on the individuals who provide services to our students. Of that 86%, 2.8% is spent on district administrators.

The 2025 referendum was a renewal of existing support first approved by the community in 2011 and renewed in 2018. Nearly 83% of voters chose to continue that investment in 2025. CPCSC’s current referendum funds teacher stipends for extracurricular activities, class-size reduction teachers, school nurses, and safety initiatives.

To read more about how upcoming property tax changes will impact the referendum, CPCSC has posted a “Letter to Our Community” at www.cps.k12.in.us/budget. The letter from school board president Brian Smith and superintendent Dr. Terrill provides a summary of why SEA 1 undercuts the support approved by the community. Across Indiana, districts will be working through the same questions: How do we maintain the student experience and achievement families expect when local revenue is changing? How do we keep schools strong while adapting to new state rules?

CPCSC is approaching these questions deliberately, with decisions guided first by student well-being and achievement. Reviews are happening across programs and services, and communication will continue through district updates, building leaders, and public budget hearings, which are posted on the CPCSC website and are available to watch on the district’s YouTube channel.

SEA 1 will shape school funding for years to come. Understanding how it works is the first step in protecting what matters most: strong schools that serve students and our community well. CPCSC will continue to share updates, financial resources, and a place to ask questions at www.cps.k12.in.us/budget, including the community letter about the referendum fund and ongoing FAQs.

What seem like small changes add up to a larger budget impact for public schools. Here are just some of the changes CPCSC has experienced in the last few years.

• Universal Vouchers   With no income cap for families who use vouchers for private schools, appoximately $3.5 million has been diverted from CPCSC to private schools. These schools are not required to publicly report or be audited on the use of taxpayer dollars that support these vouchers.
• Slower Enrollment Growth   Despite new housing locally, Crown Point’s enrollment is relatively flat: new students are offset by graduates because most empty nesters choose to stay in their homes. Enrollment growth is far less than many assume.
• Textbooks and Supplies   A 2023 state law changed how school districts collect money for textbook and curricular materials. CPCSC has collected approximately $2 million less every year under this new law.
• Exceptional Ed Growth   Since the 21-22 school year our Exceptional Education student count is up 31%, while our overall enrollment is up only 2.5%, driving significant increases in specialized staffing and service costs.
• Service/Utility Increases  Even with 10% reduction in energy use, CPCSC’s utility costs are up more than $1 million over the past two years. Like most homeowners and businesses, rising costs are impacting public schools.