Northwest Allen County Schools leaders outline operating referendum plan and explain how school funds work

Superintendent Barker and district finance staff told the Northwest Allen County Schools board and the public on Monday that the district plans to ask the board on June 23 to authorize an operating referendum for the November 2025 ballot, and they explained how different school funds can — and cannot — be used.

The presentations by Mr. Basham and Superintendent Barker laid out the district’s five fund types — education, operations, debt service, capital referendum debt service and an operating referendum fund — and stressed that the education fund is paid entirely from state tuition support while operations and debt service are supported by local property taxes.

Mr. Basham said the education fund “is for direct instructional things” such as teachers’ salaries, curriculum and classroom technology, while operations covers building maintenance, custodial staff, transportation and utilities. He added that debt service “has one sole purpose: to cover principal and interest on obligations” and cannot be used for salaries or supplies.

The presentations also addressed recent state legislation and the district’s exposure to circuit-breaker loss — the difference between levies and what is actually collectible after statutory caps and deductions. Mr. Basham gave district examples: the district’s most recent circuit-breaker loss estimate was about $940,000 and staff later said they were tracking potential additional losses of roughly $1.7 million to $2 million depending on final calculations.

To help voters estimate personal impact, the district released a web-based referendum calculator that lets homeowners select township and assessed value to see estimated annual and monthly tax changes for a proposed $12 million, eight-year operating referendum. Mr. Basham showed a Perry Township example in which the calculator output for a $12 million request produced a median assessed-value liability of $293.39 in one model and, in a no-growth scenario, an annual increase of $131.18 (about $10.93 monthly) in another. He cautioned the results depend on which township and growth assumptions are used.

Superintendent Barker said district staff are continuing to work with the Allen County Elections Board and the Department of Local Government Finance to finalize ballot language and polling logistics. The administration plans to return to the board June 23 with an authorizing resolution that will include the proposed ballot question.

Board members asked staff whether increased assessed value from new commercial development would raise operations revenue. Mr. Basham said it generally would not increase the operations levy beyond the state’s allowed growth quotient (commonly capped around 4%), though new large taxpayers can affect the district’s tax rate and overall tax burden distribution. The board also discussed the difference between assessed-value growth from “new homes/businesses” and natural growth and the possibility of advocating to the legislature for different treatment of growth for fast-growing districts.

The board did not vote on the referendum at the meeting; staff presented options and requested direction to return with an authorizing resolution at the June 23 meeting.

Less urgent details: staff emphasized the operating referendum proceeds can be used for salaries, class-size reduction, safety, CTE staffing and other operational needs, and they urged residents to use the district’s online calculator once posted.