Carmel Clay Schools officials warn budget cuts, staff reductions if referendum fails

Carmel Clay Schools board members and staff spent the meeting weighing levy options and contingency plans for the district’s operating and safety referendums, with finance staff warning that a failed vote could force rapid, large-scale cuts to personnel and programs.

“Assume there is no raise. You still will drain cash very quickly and you will have to make major millions of dollars worth of cuts,” said Roger Brown, who during the discussion described the short window the district would face if a referendum failed in January and contracts for certified staff remained in force. Brown and other staff said the district would likely use cash balances briefly but that a safety referendum loss — roughly $8 million by staff estimate — would create an immediate crisis.

The board reviewed three levy scenarios, including lines staff labeled roughly $45 million and $47.1 million; staff said the $2 million difference between those two lines roughly translates into teacher- and support-staff equivalents and emphasized there are limited nonpersonnel savings to fill the gap. “Two percent is $3 million on $150 million,” a presenter noted while explaining how modest percentage changes in salary pools translate into millions of dollars of recurring cost.

Board members and staff repeatedly highlighted that much of the district’s education fund is devoted to salaries and benefits — staff cited about 96% of the operating referendum fund going to those costs — and that special-education obligations constrain options for cuts. One member said special-education enrollment in Carmel schools has grown about 40% over the last nine years, increasing legally required staffing levels.

Speakers also discussed the broader state funding context. Multiple participants said recent state policy changes (referenced in the meeting as SP1 and circuit-breaker limits) mean homeowners’ higher tax bills have not produced equivalent increases in district funding; that gap is a driver of the referendum discussion and explains why district leaders are considering asking voters to approve a higher maximum levy now to avert deeper cuts later.

Several board members urged crafting a ballot question that is likely to pass, balancing revenue need and public appetite. One board member said they favored the middle levy option among the three presented, saying it would be lower than some proposed ballot numbers while still addressing staffing and program needs.

The board did not take a final vote on a levy at the session. A procedural motion to adjourn passed by voice without a roll-call tally at the end of the meeting.