Hobart Superintendent Peggy Buffington told a group of senior citizens Wednesday that state tax caps have decimated the district’s ability to operate its bus fleet and pay its utilities without the renewal of a $22.4 million, eight-year property tax referendum.

“We’re not asking for a tax increase,” she said, despite the confusing wording voters will see on their ballot.

This is an off-election year, meaning there are no primary or general election contests, but Hobart and Crown Point school districts are holding special elections seeking the renewal of their property tax referendums.

Early voting takes place April 8-May 5 at the Lake County election board office in Crown Point; the Hobart police-senior center, 705 E. 4th St., and the Winfield Government Center, 10645 Randolph St.

Buffington said seniors represented the biggest supportive voting bloc in the 2017 referendum, which was approved with 68% of the vote.

Tax caps, which became part of the state constitution in 2010, limit homeowners’ tax bills to a 1% increase. When tax bills exceed the cap, a circuit breaker credit kicks in representing savings to the homeowner, but a revenue loss to a school district.

This year, Hobart’s certified tax levy was $4.48 million, but so many property owners were already at the cap maximum, that negated most of the levy, Buffington said.

“We lost 81% of our levy. It is just crippling. It affects every district differently but now we have a shortfall. It’s difficult to project a budget when you’re losing money,” she said.

It left the district with $731,375 in its operating fund which covers bus transportation, utilities, maintenance, technology and school safety.

This year, she said bus service cost about $2.7 million. About $1.7 million went to the Northern Indiana Public Service Co. in utility bills.

If it loses the referendum, Buffington said Hobart would likely have to drop transportation services but wouldn’t reduce in-school days, like neighboring Lake Station did last year.

Buffington said 70% of Hobart students ride the bus. If they arrive in cars, working parents would scramble to find ways for their kids to get to school and roads would be more clogged during school times.

For a home valued at $150,000, the renewal amounts to $163 a year that would continue on tax bills. Buffington said an upward shift in home market values has led to higher taxes, but the school district’s rate remains the same.

In 2017, the average Hobart home sold for $131,341. Last year, the average sale price was $245,000, she said.

Tax caps also impact the neighboring Lake Station and River Forest school districts because they’re primarily residential communities with low tax bases, like Hobart.

Hobart Township Assessor Lino Maggio said all three school districts required referendums to maintain services. He said Hobart’s referendum increase was the lowest of the three, at 24.6 cents per $100 assessed valuation.

River Forest Superintendent Kevin Trezak attended Buffington’s presentation, saying he wanted to lend his support to the district’s referendum.

Mayor Josh Huddleston said developers are interested in Hobart, but they want to build residential homes, not businesses or industries that would boost the tax base.

Hobart’s landlocked boundaries hold largely residential properties, keeping the city’s assessed valuation and levies lower than neighboring cities that attract industries.

When Hobart annexed land in Ross Township, including Southlake Mall in 1993, the school boundaries remained the same, and children in the annexed area continued to attend Merrillville schools.

Buffington said the neighboring Portage schools rely on a steel mill and other industries to boost its tax base. Displaying a chart of area districts, she said Portage’s recent tax levy was $13.1 million and the school lost just 18% of the levy. The district has never sought a referendum.

Buffington cited the benefits the district provides students, including more than 120 college courses at the high school. She said 27% of graduates in 2024 earned associate degrees.

She said Hobart has been a technology leader, citing its appearance on CBS’s “60 Minutes” last year in a program that tracked students’ experience with an artificial intelligence tutor.

It launched an early learning center decades ago that serves children from birth to kindergarten.

Huddleston voiced strong support for the referendum, along with Maggio and Hobart school board members.

“If transportation is cut, people who can leave, will,” Huddleston said.

He said people might sell their homes for less and as values go down, the tax rate will increase.

“It’s so critical and important to have really strong schools. It’s having all the opportunities that one who’s raising a family would expect.”

If voters approve the referendum, a recent state law calls for the district to share funding with charter schools that have attracted students from Hobart.

Neighbors New Vista High School in Portage would receive about $13,000 and the Discovery Charter School in Porter would receive about $2,800.

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