Lake County school corporation outlines property tax changes and funding challenges

In a pivotal meeting held on June 19, 2025, the Griffith Public Schools Board discussed significant changes to property tax legislation that could impact local homeowners and the school district's financial future. The atmosphere was charged with concern as board members and community stakeholders gathered to dissect the implications of Senate Enrolled Act 1, which aims to provide relief to property taxpayers while simultaneously restructuring how schools receive funding.

The overarching goal of the new legislation is to lower annual property tax bills through increased deductions on assessed home values. As property values are expected to rise in line with historical trends, the law seeks to ensure that the taxable value of homes does not grow at the same pace. This means that while homeowners may see their property values increase, the amount they are taxed will be reduced, providing some financial relief.

However, the board highlighted a looming challenge: starting in 2028, property tax replacement credits—which currently help offset tax bills—will be eliminated. This change is expected to lead to a significant decrease in revenue for the school district, potentially resulting in a 15% reduction in property tax receipts. The implications of this shift are profound, as the school corporation relies heavily on property taxes and state funding, both of which are constrained by the new legislation.

The board also addressed the financial health of the school district, revealing that a recent analysis uncovered a budget imbalance primarily due to higher-than-anticipated salary and benefit expenditures. This situation was exacerbated by a difficult financial software transition and the unexpected influx of federal stimulus funds during the COVID-19 pandemic. As the district works to rectify its budget, it is crucial to consider the timing of future referendums to secure necessary funding.

With the potential for flat revenue growth in the coming years, the board faces tough decisions about when to seek voter approval for renewing the operating referendum. The options are to run the referendum in November 2028 or wait until 2030, with the understanding that failing to secure funding could leave the district without essential resources for two years.

As the meeting concluded, the board expressed hope that state legislators would respond to these challenges, emphasizing the need for proactive measures to ensure the sustainability of Griffith Public Schools. The discussions underscored a critical moment for the district, balancing the need for taxpayer relief with the financial realities of maintaining quality education in the community.