INDIANAPOLIS – Gov. Mitch Daniels recently declared the new referendum process is "working pretty darn well" in Indiana.
Capital construction projects and operational increases for schools have failed more often than not since November 2008 – a 58 percent failure rate overall and 65 percent when considering just capital-project votes.
Under the previous remonstrance process involving dueling petition drives, school projects had a 50-50 history of passing.
"It’s about the economy more than it is an anti-public school issue. The bottom line is people are looking at their pocket books and they are empty," said Dennis Costerison, executive director of the Indiana Association of School Business Officials.
"I think districts will struggle getting construction referendums passed until the economy improves."
Lawmakers in 2008 went to a referendum process for most construction projects when property tax increases are at stake. It already existed for operational increases though it was used rarely.
Both types of referendums, when approved, are kept outside any calculation of property tax caps. This means homeowners and other property taxpayers have to pay for the projects even if they have reached the established limits on property taxes.
"I think people are showing a lot of common sense," Daniels said. "If somebody makes a good case locally for more spending or more taxes to pay for it, Hoosiers are showing they are willing to go for that.
"If you can’t make the case, they’re turning it down, sending people back to the drawing board."
So far, referendums seeking additional money for a school district’s operational expenses are more likely to succeed.
Southwest Allen County Schools won approval in April for an additional levy generating $3.5 million annually to maintain smaller class sizes by keeping the same number of teachers employed.
Then in November, Southern Wells Community Schools approved a tax increase to keep academic programs intact and save a handful of teaching jobs.
"It’s working perfectly. The public is … getting the information and making good decisions," said Rep. Jeff Espich, R-Uniondale. "Hoosiers are concerned about students not having enough books and teachers."
East Allen County Schools Superintendent Karyle Green said the district is considering an operational referendum to put on the ballot in the next 18 months.
"Our financial situation continues to get dicier each year," she said. "In East Allen, we need to provide a more equitable program of opportunities for all our students across the district."
She knows the district will have to educate voters as to why the money is needed but said voters so far have been more supportive of spending for academic programs.
Indeed, construction projects are a harder sell. Only six have passed since implementation of the rule, and four of those were in November 2008. Since then, it has been virtually impossible.
"We certainly have a concern that over time that things need to be updated and to be renovated occasionally," said Nate Schnellenberger, president of the Indiana State Teachers Association.
"While everyone understands that right now may not be the time to spend resources, once the economy turns around I hope voters will approve them. It will be interesting to see if the statistic remains the same in the future."
Krista Stockman, spokeswoman for Fort Wayne Community Schools, said the district still has building-renovation needs after losing a $500 million construction remonstrance in the summer of 2007.
"If we go forward at some point with a referendum, we are going to try to do a project the community will support," she said. "There are lessons to be learned. It’s important to know how it’s worked in other communities, but that is not necessarily a reflection of how it would work in Fort Wayne."
There were some concerns when referendums were originally debated that they would lead to crumbling buildings, especially in urban and poorer districts.
But Chuck Little, executive director of the Indiana Urban Schools Association, thinks voters will do the right thing.
"I think there is great possibility and opportunity in referendums. Indiana doesn’t have a history of referendums but it will develop, and Hoosiers will understand that they have an effect on school policy," he said. "They can show their pride through voting."
So far, the data don’t bear out any pattern on referendums when comparing wealthy with poorer districts. Of the referendums that passed, four districts had per-capita incomes above the statewide average, and six were below.
Of those referendums that failed, nine districts had per-capita incomes above the statewide average, and six were below.
"We are not seeing a pattern of inequity, which is good," Espich said. "It’s direct democracy in action. There is a greater desire by the public to be empowered. They are better educated, and this gives them the chance to make decisions."
