Board hears state bills could cut levy growth; staff lays out operating-referendum timeline

At the Feb. 24 regular meeting, Northwest Allen County Schools officials told the Board of School Trustees that several bills advancing at the Indiana Statehouse could reduce local operating revenue and restrict the timing of future referendums, and that the district is preparing an operating referendum timetable that would aim for certification this summer and an election on Nov. 4, 2025.

Superintendent Trevor Barker said the district has received a legal timeline from Ice Miller showing the board would need to adopt a referendum resolution at the June 23 meeting and certify final language by Aug. 1 to appear on the Nov. 4 ballot. "These are the legal steps," Barker said as he described the calendar.

Board member Mrs. Schlatter, who reported on a recent ISBA (Indiana School Boards Association) Statehouse Day, said school funding was the central topic legislators discussed. She and district staff singled out several bills that could affect district revenue and borrowing. The district identified Senate Bill 1 as one major concern because it sets maximum levy growth quotient (MLGQ) numbers that district staff said would be 0% for calendar year 2026, 1% for 2027 and 2% for 2028. District staff estimated that if those limits hold, Northwest Allen could face a reduction in operating revenue of about $752,000 in 2026, $1.4 million in 2027 and $2.2 million in 2028, compared with current projections.

District staff also summarized provisions in House Bill 1001 and related budget language. The district said the House budget proposal embeds $160 million in curriculum-materials funding into the foundation formula but that much of the stated tuition-support growth—$180 million in year one—would be directed to Choice scholarship (voucher) expansion. "Of that first $180,000,000," a staff presenter said, "$139,000,000 is being spent on 15,000 private school students; the remaining roughly $41,000,000 would be divided among roughly 1,000,000 public K–12 students." The district cautioned that headline percentage increases in the state budget may not translate into equivalent per-pupil increases for public schools.

Board and staff also referenced Senate Bill 518, which the district described as a step toward sharing referendum revenue with charter schools under certain conditions; Northwest Allen County Schools is not currently in the category that would meet the bill’s threshold, staff said.

Staff emphasized that these bills remain in flux and that provisions from bills that die in committee can be attached to other legislation late in the session. Barker and district financial officer Trevor Basham said they will continue to monitor the session and to meet with local legislators. Barker said the district is working with Ice Miller and Winston Tarr Group on referendum planning and community engagement, and that more detailed public outreach and language development will follow if the board decides to proceed.

No formal referendum resolution was before the board on Feb. 24; staff presented the timeline and financial analysis for board review and said action on a resolution is planned for the June 23 meeting if the district pursues a referendum.