Carmel Clay Schools told SEA 1 could shrink referendum revenue by $94 million; board weighs levy options and voter messaging

Carmel Clay Schools trustees spent the work session on Wednesday hearing how changes in Indiana law could reduce property-tax revenue and complicate any operating or safety referendums the district might place before voters.

Barry Gardner, a consultant with Policy Analytics, told the board that Senate Enrolled Act 1 (SEA 1) changes several long-standing deductions and exemptions — converting the standard homestead deduction to a percentage-based deduction phased to about 67% by 2031, creating a 10% homestead tax credit (up to $300) beginning in 2026, adding deductions for a so-called “2% class” (apartments, long-term care and farmland) and raising the de minimis business personal property investment threshold — all of which reduce the district’s net assessed value and therefore lower property-tax revenue available to support referendums.

"As we increase deductions, we're going to push down net assessed value," Gardner said, adding that his firm projects the district could receive about $7 million less in referendum revenue in 2031 than it would have under the prior tax structure, and that cumulatively the district faces much larger shortfalls under baseline scenarios.

Why it matters: the board’s operating and safety…