STATEHOUSE (May 17, 2021) – A new law will increase transparency and accountability when school corporations pursue local property tax referendums, according to State Rep. Jake Teshka (R-South Bend).
He said a referendum is a public question placed on a ballot by a local unit. Referendum questions can focus on construction projects and operating needs, including for schools seeking to impose tax levies or extend tax levies in order to carry out public educational duties.
With this new law sponsored by Teshka, a school board's proposed referendum resolution must include a revenue spending plan laying out how the tax money collected will be used before it goes to the ballot. If voters approve the referendum, school corporations' annual financial reports will also include examinations of revenue spending plans and other applicable funds impacted by the levies. The revenue spending plan will be also presented at public hearings on proposed school budgets.
"This law just adds another layer of oversight to ensure tax dollars garnered through referendums continue to go toward the intended purpose," Teshka said. "School spending is very complex, and the people serving as school board members and administrators do change over time. This added level of transparency keeps everyone on track and provides assurances to taxpayers."
According to Teshka, 18 school districts across the state proposed referendums last year. The law is supported by the Indiana School Boards Association.
Senate Enrolled Act 55 goes into effect July 1, 2021. To learn more about the new laws recently signed by the governor, visit in.gov/gov/newsroom/2021-bill-watch.
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State Rep. Jake Teshka (R-South Bend) represents House District 7, which includes the majority of St. Joseph County.
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