Hobart schools bracing for fallout from GOP tax bill

Hobart’s school town faces a grim fiscal reality if state lawmakers don’t act quickly to amend a property tax relief bill approved by lawmakers last year.

Superintendent Peggy Buffington told the school board Thursday that the district would not receive any property taxes in the 2026-2027 school year under the measure. Tax dollars support the district’s operating fund, which pays for bus transportation, utility bills, repairs and maintenance.

If the law isn’t changed, she said it could lead to layoffs and program cuts.

As recently as last May, Hobart taxpayers backed an eight-year, $22.8 million property tax referendum for the operating fund to keep its bus service afloat.

Buffington said the district is already losing 81.6 per cent of its tax levy due to property tax caps written into the state constitution by lawmakers in 2010. With the impact of SEA 1 on top of that, Buffington said Hobart stands to lose 104 per cent of its levy in 2026 and 110 per cent in 2027.

Buffington brought Hobart’s case to lawmakers this week and said she hoped it would make a difference.

She said she spent about 30 minutes with senators and representatives. She said many did not realize the effect the new law would have on districts like Hobart, which are heavily residential with little industry to support them.

“I’m very hopeful, but they’re in a tough spot; it’s a short session,” Buffington said.

The General Assembly reconvened Monday after opening the short December session to consider redistricting the state’s congressional districts. This effort failed.

Legislative leaders hope the session can conclude by the end of February. Typically, lawmakers don’t make changes to the budget during a short session.

Republican Gov. Mike Braun and GOP lawmakers defended Enrollment Act 1 in the Senate last year because they said taxpayers told them they needed property tax relief. Braun called on schools and local governments to “do more with less.”

One legislative body estimated the law would cut $744.2 million from Indiana’s public schools.

To stem the shortage of taxpayer dollars, the school board voted to hold a public hearing at 7 p.m. Feb. 5 to gather feedback on the sale of Ridge View School, a former elementary building at 3333 W. Old Ridge Road previously leased to Geminus Head Start and the Hobart Family YMCA.

Officials said the sale would reduce expenses for the district’s operating fund and generate additional revenue for the operating fund.

Students stopped attending Ridge View in 2020 when the district opened the $18 million Veterans Affairs at Mundell Elementary School.

“I know it takes a long time to change a law, but I think there are some things they can do in this short session for districts that are hurting,” Buffington said.

Meanwhile, the City of Hobart also expects to lose $5 million to $7 million from SEA 1, Mayor Josh Huddlestun said, but the city is on track to benefit from a financial windfall from Amazon which wants to build a massive data center at 61st Avenue and Colorado Street.

Hobart schools, however, will not receive tax revenue from the data center because it is within the Merrillville Community School Corp. boundaries. The area is also in a tax increment financing zone, which will keep future taxes within the TIF.

If the Amazon project is finalized, Huddlestun said Friday, the city would create a community economic impact program that could fund schools.

“We want to make sure our public education is strong going forward,” he said.

Besides a boundary that includes a section of Merrillville Schools, Huddlestun said Hobart’s northern tier also includes students who live within the River Forest Community School Corp boundaries.

Carole Carlson is a freelance journalist for the Post-Tribune.