West Lafayette board hears 2026 budget overview, warns of shrinking tax base and enrollment

The West Lafayette Community School Corporation board reviewed the proposed 2026 budget and a long-term fiscal outlook at a Sept. 8 work session, hearing that modest state funding increases and declines in enrollment and assessed value will pressure the district's finances in coming years.

“Tonight is the budget workshop for the 2026 budget,” said Missus Cronk, a business‑office staff member, opening the presentation that laid out revenue, levy and fund projections and the corporation’s budget calendar.

Board members were told the district expects only modest increases in state tuition support — about 1.13% for the 2025–26 year and 1.48% the following year after removing a one‑time curricular materials payment — while enrollment trends and changes from the recent legislative session threaten longer‑term revenue. “We’re kind of moving into a cash conservation mode, okay, to prepare for that coming down the pike,” Cronk said.

Why it matters: West Lafayette budgets depend on two key variables — student enrollment and certified assessed valuation — and the district’s documents and outside fiscal modeling presented at the session show both are likely to weaken. The result could be smaller operations and referendum fund receipts even if the corporation keeps current levies in place.

What the presenters told the board - State funding and formula changes: Cronk walked the board through the state tuition support tables and explained she had adjusted out a $158 per‑pupil curricular‑materials payment so trustees could compare “apples to apples.” She reported a net per‑pupil increase of about $79.37 for 2025–26 (1.13%). - Assessed value (AV) and referendum outlook: Cronk said certified net assessed value (NAV) for the district rose modestly for 2026 (about 1.62% excluding TIF, and roughly 7% including TIF). But both presenters and packet materials warned those gains may be temporary because of new deductions and credits the legislature enacted. - Legislative changes and credits: Fiscal consultant Mike Reuter told the board the session focused on property tax relief and that the law that emerged includes a homestead credit applied after a tax bill is computed (up to a capped dollar amount beginning in the 2026 tax year) and growing deductions for rental and business personal property in subsequent years. “We’re going to see some pretty substantial erosion of our tax base, going forward, which is going to impact the most is the referendum fund,” Reuter said. - Enrollment: Reuter showed the corporation’s internal enrollment counts and projections indicating a continuing decline through the near term, which compresses total district revenue because state funding follows actual pupils rather than seats. - Fund‑by‑fund outlook: Cronk reviewed each major fund (Education Fund 101, Debt Service Fund 200, Operations Fund 300, Operating Referendum Fund 160 and Rainy Day Fund 610), showing the education fund is currently in a relatively strong cash position but that both operations and referendum funds face structural pressure if trends continue. Reuter’s forecast scenario showed the operations fund could run a structural gap that might force consideration of education‑to‑operations transfers (statute allows up to a 15% transfer from education to operations).

Board questions and next steps Trustees pressed for follow‑up figures on how scenarios would play out under different assumptions (for example, closing transfers vs. keeping them open and referendum options). Reuter said he would produce models showing outcomes under different enrollment and AV scenarios, including what a run‑up to a future referendum could look like, but cautioned that the law and revenue assumptions remain in flux.

No budget adoption votes were taken at the work session. Cronk noted the corporation published the Form 3 Notice to Taxpayers on Aug. 27, the public hearing on the budget occurs at the district’s regular meeting (Sept. 8) and adoption is scheduled for Oct. 6, after which documents will be submitted to the Indiana Department of Local Government Finance for approval.

What to watch - The district’s formal budget adoption on Oct. 6 and the DLGF approval process through Dec. 31, which determine final appropriations and levies for 2026. - Reuter’s follow‑up fiscal models to show how changes to transfers, a possible referendum and expected AV declines would affect tax rates and cash balances.

Sources and evidence: The budget presentation and Reuter’s long‑term fiscal briefing were given at the Sept. 8 work session. Key excerpts in the transcript include Cronk’s opening statement and the fiscal overview from Reuter.