Consultant: Senate Enrolled Act 1 will mute Jennings County school revenues, push tax rates higher

Barry Gardner, a consultant with Policy Analytics, told the Jennings County School Corporation work session that Senate Enrolled Act 1 will shrink the district’s taxable base and mute revenue growth while pushing tax rates higher.

Gardner said the law, signed into force as “Senate Enrolled Act 1,” changes homeowner deductions, introduces a 10% homestead credit (up to $300) beginning in 2026, raises certain deductions for seniors and veterans, increases the business personal property reporting exemption to $2,000,000 in 2027, and alters farmland base-rate calculations — all of which reduce net assessed value (AV) available to fund local governments and schools.

Why it matters: the district’s net assessed value is projected to decline through 2030 under Gardner’s model, producing a statewide pattern of higher tax rates to generate roughly the same levy. For Jennings County Schools, Gardner said those mechanics could create a roughly $2 million gap in revenue beginning in 2028 compared with pre‑Act projections; under scenarios in which the district attempts to keep its current tax…