A Message from Superintendent Dr. Jacinda Smith
I wish the question voters will see on November 3 were different.
When our School Board began discussing an operating referendum, I can assure you this was not something any of us wanted to do. No superintendent looks forward to asking neighbors to pay more in property taxes. And I know our School Board didn't take that decision lightly. Especially here, in a small, rural community where families, farmers, businesses, and retirees are already dealing with rising costs.
But here's the thing. This isn't about what I want or what our School Board wants. It's about making sure our community understands the financial challenges facing Shakamak and has the information needed to decide what comes next.
If I could write the question on the ballot, I would want it to explain how Indiana’s school funding system has changed and how operating costs continue to rise, then ask whether our community wants to preserve the progress we’ve made and the people, programs, and opportunities that make Shakamak the school community we know and value.
Unfortunately, that's not the question voters will see on November 3.
The actual ballot question is written according to Indiana's legal requirements. It explains the purposes of the referendum, but it also includes tax rates, maximum levies, and estimated property tax increases that can be difficult to understand without additional context.
Here is the question voters will be asked to answer:
“Shall the Metropolitan School District of Shakamak increase property taxes paid to the school corporation for no more than eight (8) years for the purpose of funding and maintaining daily educational operations, including recruiting and retaining teachers and staff, supporting essential safety initiatives, maintaining class sizes, and funding academic programs and opportunities to meet the learning needs of all students, in response to reductions in property tax revenue, by imposing a property tax rate that does not exceed $0.25 and results in a maximum annual amount that does not exceed $499,000. If this operating referendum public question is approved by the voters, for a median residence of $100,000, the property's annual property tax bill would increase by $81 per year.”
That's a lot to take in, especially when you're standing in a voting booth.
And while every number in that question serves a purpose, there are a few things I believe voters deserve to understand before deciding what those numbers mean for them.
Understanding The Numbers on the Ballot
Let me explain.
First, Indiana law requires the median home value used in the ballot question to be rounded up to the next $50,000. For Shakamak, the actual median gross assessed value was approximately $88,300. But the state-required calculation uses $100,000.
For the ballot illustration, that means using a home value nearly $12,000 above the district’s actual median. This calculation does not change the assessed value of anyone’s property.
Second, the ballot must also show the maximum tax rate and maximum annual levy. For Shakamak, those figures are $0.25 per $100 of assessed value and $499,000 annually.
But here's what the ballot doesn't tell you. The maximum rate is not necessarily the rate the district plans to collect.
Our financial planning has included beginning at $0.18 rather than the maximum $0.25. The School Board would determine the actual rate each year based on the district's needs.
Why ask for a higher maximum? Because we're being asked to plan eight years into the future. Think about how much the cost of insurance, utilities, fuel, and employee benefits has changed in the last eight years. Now imagine trying to predict those expenses eight years from today.
The maximum gives the district flexibility, but it does not require the Board to collect that amount.The ballot's estimated tax impact is also calculated using the maximum authorization. For Shakamak, the county auditor verified an estimated $81 annually, or approximately $6.75 per month, for a home valued at $100,000.
That figure represents the estimated amount attributable to the referendum at the maximum authorization. It does not necessarily reflect what every homeowner would pay or the total change someone might see on their property tax bill.
Shakamak’s Financial Needs and Proposed Uses
And there is another complication. Indiana is implementing property tax changes through Senate Enrolled Act 1. Those changes are designed to provide tax relief to property owners, but they also reduce certain revenues available to public schools.
We are trying to plan for the next eight years while the state's property tax system is changing underneath us. That's complicated for school officials. I can only imagine how frustrating it is for a homeowner simply trying to answer the question, "What will this cost me?"
And there is something else the ballot cannot explain.
Shakamak has a small property tax base, but many of the same expenses as larger, wealthier school districts. A school bus doesn't cost us less because we're small. Neither does insurance, heating our buildings, or hiring a qualified teacher.
We've worked hard to manage those costs. Our property tax rate has been declining, and we continue to examine our expenses. We restructured our Central Office, reducing five positions to two and saving approximately $178,000 annually. But even careful financial management cannot eliminate every rising expense or overcome every disadvantage of a limited tax base.
The ballot also cannot explain what those dollars would support. It would support things like transportation needs, smaller class sizes for our youngest readers, the programs preparing students for college and careers, the staff helping students who need extra support, and the work of maintaining safe schools.
These are the people and opportunities behind the numbers.
I know some residents support the referendum, others oppose it, and many are still trying to make sense of it all. I respect that. This is an important decision, and the financial concerns of our taxpayers deserve just as much consideration as the needs of our schools.
That's why I encourage everyone to take a little time before November 3 to understand what the ballot is actually asking. Look at the maximum rate, but also understand how the actual rate would be determined. Review the district's proposed uses of the funding. And consider how the estimated referendum tax impact relates to your own property.
We've made that information available, along with frequently asked questions, at www.shakamak.k12.in.us/page/referendum-2026. Because every property owner’s situation is different, I encourage you to use the Shakamak Referendum Tax Calculator to explore the estimated referendum tax impact for your own property.
Whatever decision you make, I want it to be an informed one. The ballot question gives you numbers. But behind those numbers are the financial realities of our schools, the concerns of our taxpayers, and the students we serve every day.
Our community deserves to understand the whole picture.
Dr. Jacinda Smith
Superintendent
MSD of Shakamak