Tipton schools face cash shortfall; associate superintendent outlines referendum plan

Associate Superintendent Scott Jaworski told the Tipton Community School Corporation board on May 12 that the district is facing a structural funding shortfall driven by declining enrollment and reductions to property-tax revenue under Senate Enrolled Act 1 (SEA 1).

"If nothing changes, these numbers can't work. We legally cannot end the year with a negative cash balance," Jaworski said as he presented multi-year projections showing cash balances could fall below zero by 2028 if the district does not act.

Jaworski explained the district's funding structure and the trade-offs involved. The district relies mainly on the state basic grant and local property-tax revenue routed to the operations fund for transportation, utilities and maintenance. He said Tipton receives about $7,475 per student from the state basic grant, roughly $259 below the statewide average of $7,734. With current enrollment (about 1,300 students), he said that gap is roughly $345,000 annually.

The presentation described two revenue pressures: declining enrollment, which reduces state funding tied to student counts, and SEA 1, which reduces taxable assessed values and adds homeowner credits that the district will not be reimbursed for. Using a $200,000 home example, Jaworski showed how taxable value and per-household operations revenue fall through 2031 under the law's phase-in.

Jaworski also summarized staff and program reductions the district has already made and those proposed for next year. Since 2020 the district has reduced 42 positions (including 11 teachers and a 25% reduction in administration); for the coming year the district is planning more than $900,000 in reductions affecting roughly nine teachers and 10.5 full-time staff positions, he said.

As one option to address the structural shortfall, Jaworski presented sample language for a November 2026 operating referendum (not a construction referendum). The example he described would allow a maximum rate of 25 cents per $100 of net assessed value for up to eight years and a maximum annual collection cap of $2 million. He gave an illustrative homeowner impact at the maximum rate of about $216 per year on a $200,000 home using projected assessed values.

Jaworski framed the conversation as one of community choice: continue deeper reductions that will affect class sizes and programs, or seek local voter approval for additional ongoing operating revenue. He closed by asking the public and board to consider trade-offs and to engage in the process if a referendum is advanced.

Next steps: the presentation served as public information and no referendum vote was taken that night. The board retained the option to pursue community engagement and later place a referendum question on a ballot should it choose to do so.