2026

The Challenge

Indiana school funding has changed dramatically over time.

Beech Grove City Schools faces unique financial pressures because our district receives almost no meaningful local Operations Fund revenue due to Indiana property tax cap limitations.

While many districts rely upon local property tax growth to support transportation, maintenance, custodial services, safety, and operations, Beech Grove’s property tax structure significantly limits our ability to generate those resources.

Recent legislative changes—including Senate Enrolled Act 1 (SEA 1)—have added additional financial pressures and reduced long-term predictability.

For Beech Grove, these challenges are compounded because:

• Property tax caps significantly reduce Operations Fund collections
• Our district has limited assessed valuation diversity
• Revenue growth has not kept pace with increasing costs
• Essential services continue becoming more expensive

These factors create long-term structural challenges that cannot simply be solved through cost reductions alone.

The proposed referendum would continue funding for core operational services that directly support students and families.

Funds would be used to continue:

Reliable School Transportation

Ensuring students continue to have access to dependable bus transportation services every day.

Safe & Well-Maintained Facilities

Maintaining school buildings, infrastructure, and learning environments that support student success.

Student Safety & Security

Continuing support for school safety initiatives and School Resource Officers.

Essential Operations

Supporting operational functions including maintenance, custodial services, utilities, and district services necessary to keep schools running safely and effectively.

Key Point

This referendum is not about adding new services.

It is about preserving the essential services our students and families rely upon every day.

Before asking the community for support, we have worked aggressively to maximize efficiency and reduce costs.

District actions have included:

• Reducing administrative overhead – elimination of 6 district administrators
• Reorganizing district leadership structures
• Using attrition to reduce staffing expenses
• Pursuing competitive grants
• Expanding transfer enrollment opportunities
• Leveraging virtual school revenue strategically
• Conducting competitive contract reviews
• Prioritizing long-term maintenance planning

These efforts have helped protect classrooms and students while preserving financial stability.

Without continued local support, we would be required to reduce our annual budget by approximately $4,000,000 across both the Education Fund and Operations Fund.

These reductions would not be isolated to one program or department. They would impact students in every school, every day, and require difficult decisions across nearly every area of district operations.

Potential impacts could include:

Transportation Reductions

• Reduced bus routes and expanded walking zones
• Fewer transportation services for students and families

Student Support and Staffing Reductions

• Reductions in counselors, instructional support staff, coaching positions, and school leadership roles
• Fewer supports available for students and families

Academic Program Impacts

• Reduced instructional supports and student services
• Impacts to extracurricular opportunities and enrichment programming

Operations, Safety, and Facility Impacts

• Reduced custodial and maintenance services
• Deferred facility improvements and infrastructure needs
• Fewer school safety resources, including School Resource Officer support

These would not be temporary adjustments. These reductions would become long-term realities for district operations and would fundamentally change the educational experience available to students.

The question is not whether reductions would occur.
The question is what Beech Grove wants its future to look like.

An Operating Referendum allows a school district to seek voter approval for local funding to support day-to-day operational expenses that are not fully funded through state revenue sources.

In Indiana, operating referendum dollars are commonly used to support essential services such as transportation, building operations, school safety, maintenance, staffing, and other operational needs that directly support students.

For Beech Grove City Schools, referendum funds help sustain critical services our students and families rely upon every day.

No.

Beech Grove voters approved an Operating Referendum in 2020. The proposed 2026 referendum would replace the existing referendum and continue support for essential district operations.

This effort is intended to maintain important services already in place—not create a new program or add entirely new spending categories.

For a home with a market value of approximately $185,700, the proposed referendum is projected to cost less than what the homeowner currently pays. In 2027, the median homeowner is estimated to save approximately $0.57 per month—or $6.76 for the year.

Over the eight-year life of the referendum, the median homeowner is projected to save approximately $127.74 compared with the current payment level. Because Indiana property tax bills are affected by tax caps and each property owner’s individual circumstances, the actual impact will vary by property.

Assessed Property Value

The proposed Operating Referendum would remain in place for eight years, which is the standard duration allowed under Indiana law.

If approved, the referendum would provide a stable funding source that allows the district to responsibly plan and maintain essential services over time.

Proposed referendum dollars would support core operational services that students and families depend upon every day.

Priority areas include:

• Safe and reliable school bus transportation services
• Safe and well-maintained facilities
• Student safety and security initiatives, including School Resource Officers
• Operational functions that help schools run safely and efficiently

These funds support the day-to-day operations necessary to provide strong schools for students and families.

We face unique financial challenges that limit local Operations Fund revenue.

Indiana property tax caps and funding structures significantly reduce the district’s ability to generate local operational funding compared to many districts across the state.

At the same time, expenses for transportation, maintenance, utilities, safety, and operational services continue to increase.

Over time, the district has reduced administrative costs, reorganized staffing structures, pursued grants, expanded enrollment opportunities, and implemented efficiencies whenever possible.

Those efforts have helped, but they cannot fully offset long-term structural funding challenges.

An Operating Referendum funds day-to-day district operations and services.

Examples include transportation, safety, maintenance, custodial services, and operational support functions.

A Capital Referendum is used for larger facility and infrastructure projects such as construction, major renovations, or significant building improvements.

The proposed Beech Grove referendum is an Operating Referendum, focused on maintaining essential services students rely upon daily.

Without continued local support, we would face difficult financial decisions that could affect district operations and services.

Potential impacts could include:

• Reduced transportation services
• Deferred maintenance and facility needs
• Increased pressure on school safety resources
• Reductions in operational supports and services

These decisions would affect the district’s long-term ability to maintain current levels of service.

We are committed to transparency and responsible stewardship of taxpayer resources.

The district regularly shares financial information publicly through board meetings, financial reports, presentations, and the district’s Financial Transparency Portal.

The district will continue providing updates so community members can understand how funds are being used and how investments support students and schools.

Your Schools. Your Investment.