Citing the revenue impact from property tax caps, the Hobart School Board approved a resolution Thursday to renew its 2017 operating referendum to raise about $22.5 million over an eight-year span.

With state approval, the referendum would appear on the May 6 ballot. Superintendent Peggy Buffington said the measure would remain tax neutral, meaning it would not increase tax bills, despite its confusing ballot wording.

Bus transportation makes up the largest chunk of the referendum revenue, costing about $2.7 million annually.

Busing to school would be in jeopardy if voters reject the referendum, Buffington said.

Lake Station students lost five-day-a-week busing from August to November after last year’s referendum defeat. Students attended school remotely two days a week during that period. Voters there approved the operating referendum Nov. 5 and the district restored full busing.

Buffington said $75,000 annually from the Hobart referendum would also be dedicated to pay school resource officers who work in every school.

When tax caps took full effect in Lake County in 2020, Buffington said the district lost about $2 million, or what it cost then to run its 24-bus fleet.

The tax caps limit homeowners’ tax bills to a 1% increase. When tax bills exceed the cap, a circuit breaker credit kicks in that represents a savings to the homeowner, but a revenue loss to a school district.

Buffington pegged Hobart’s loss at about $3.75 million this year.

Three funds — operating, education and debt service — make up a school district’s budget. Only property taxes support the operating fund, which pays for transportation, maintenance, utilities, property casualty insurance, and school safety resources.

The district could face a $300,000 increase in its annual electric bill if the state approves the rate increase proposed by the Northern Indiana Public Service Co.

Districts can transfer funds into an operating fund as its revenue declines. They can shift up to 15% from the education fund, supported by state sales tax, and from the debt service fund.

On Thursday, the school board approved the transfer of about $1.5 million from the education fund to the operating fund and $750,000 from the debt service fund to the operating fund.

“We’re asking people to continue their commitment to the children of Hobart,” said Buffington who added that two-thirds of enrolled students rely on bus transportation.

Earlier in 2024, a new state law backed by GOP lawmakers called for districts to share referendum revenue with charter schools that serve students in their district.

That means Neighbors New Vistas High School in Portage would receive about $13,504 annually and Discovery Charter School in Porter would get $2,813.

Buffington plans to begin a series of community forums in March to detail the need for the referendum.

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