HSE School Board facing decision on property tax referendum, rate request

The Hamilton Southeastern (HSE) Schools generate roughly $26 million in annual revenue through a referendum property tax rate approved by voters in 2016.  That referendum is set to expire at the end of 2023.  The questions before the school board include – whether to request that voters approve the same .2275 rate, a lower rate or some other language on the November ballot.

Wednesday morning, a Referendum Committee composed of 3 board members, top administrators and some involved in the 2016 referendum process gathered to look at the referendum options before the board.

HSE Schools Chief Financial Officer Katy Dowling told the committee she does not feel an increase in the referendum rate is needed as things stand now., and she does not feel she can weigh-in on decreasing the rate until the 2-year state budget is approved by the General Assembly in April.  For example, there is a proposal in the legislature to remove book fees, including some technology, that would cost HSE Schools about $8.4 million, with the state not providing any funding for local school districts.

Administrators are asking the board for a consensus on how to move forward with referendum plans at the regular March 22nd board session.  A final vote by the board on any referendum rate is expected sometime in June.

Once a final vote is taken by the board on a referendum rate, special rules take effect for school employees, except a handful of top administrators.  During work hours, most school employees would not be allowed to advocate for or against a referendum vote, but could provide information about the referendum if asked a specific question.

Any referendum rate vote by the school board would be submitted to the County Auditor’s office, then to the state for a review of the precise language appearing on the ballot.

Dowling told the committee school staff will create a budget task force to determine what spending reductions would be required if a referendum does not pass.  The process of coming up with that plan takes 3-4 months.

The school board has scheduled a work session Wednesday evening to ask questions about the referendum and will also discuss student handbooks.