Dr. Schaefer: State tax changes lowered assessed values and cut nearly $1M from district operations funding

Dr. Schaefer, presenter, said in the final video of a school finance series that changes in state law have reduced net assessed property values and strained the district's operating budget. "When net assessed values decrease, the revenue available to local governments, including schools, decreases as well," he said.

The video explained how property tax bills are the product of multiple overlapping taxing units — county, township, town, library, fire territory and the school corporation — each setting its own rate. Dr. Schaefer said the intent of the recent legislation was to provide property tax relief but that the change, which he identified as "Indiana Senate Enroll Act One," has the effect of lowering assessed values and therefore reducing revenue available locally.

He stressed that the community-approved master campus plan has not changed: "The projects, the scope, and the total bond repayment amount remain the same as originally approved," Dr. Schaefer said. But he warned that changes in how assessed values are calculated have shifted how the levy is generated and "can affect tax rates even when the total amount being collected has not increased."

Dr. Schaefer said the combined effect of lower local assessed valuation capacity and increasing circuit breaker losses has resulted in "nearly a $1 million reduction" in the district operations fund, which supports "utilities, transportation, insurance, maintenance, technology, infrastructure, and custodial services." He noted that the district is growing — adding students, programming and square footage — which raises operating obligations even as that revenue declines.

On capital funding, Dr. Schaefer clarified that construction funding is legally separated from operations funding: bonds may be used only for capital improvements and cannot be tapped to pay operational costs such as personnel, utilities or transportation. "It leaves us committed to transparency. It leaves us focused on fiscal responsibility and it leaves us dedicated to protecting what matters most, student learning," he said.

The video did not identify the speaker's official title beyond "Dr. Schaefer," nor did it specify the district by name in the transcript. The presenter encouraged continued partnership and engagement with the district on these financial issues.

The district's next procedural steps or options for addressing the operations shortfall were not specified in the video.