SUMMARY:
A series of high-stakes public meetings in May 2026 resulted in a coordinated funding partnership between the Town of Brownsburg, the Brownsburg Redevelopment Commission (RDC), Brown Township, Lincoln Township, and Brownsburg Community School Corporation (BCSC). The agreements could provide $1 million dollars in temporary support for Brownsburg Schools while helping the district avoid a 2026 operating referendum amid growing financial pressure caused by state tax reforms and declining revenues.
BROWNSBURG, Ind. — After weeks of negotiations and mounting concern over school funding, Brownsburg officials approved a series of agreements in May 2026 designed to temporarily stabilize Brownsburg Community School Corporation finances and delay a potential school referendum until at least 2028.
The coordinated effort followed warnings from BCSC administrators that recent Indiana legislation — including House Bill 1454 and Senate Enrolled Act 1 (SEA 1/SB1) — created unanticipated millions in lost revenue for the district while also reducing revenue growth for local governments.
BCSC officials estimate the district faces approximately $7.9 million in revenue reductions over the next three years.
The Bottom Line:
• BCSC Reduced their request to 1 million dollars in temporary aid.
• RDC / Town Council increased their 1 year TIF grant to 800,000 dollars.
• Lincoln and Brown townships provided 100,000 each year for up to three years.
– Future township funding remains subject to annual board appropriations.
The one year monies total 1 million dollars.
BCSC officials made it clear that unless the Indiana General Assembly addresses the school funding shortfalls experienced across the state, BCSC will return to the RDC, Town Council, and Townships with similar funding requests in 2027 and 2028, while also initiating procedures for a referendum in 2028.
>>Click Here<< See our comprehensive coverage how these circumstances unfolded. – Referendum Deadline Looms as Town, Schools, and Townships Seek Funding Compromise.
BACKGROUND: BCSC FUNDING PRESSURES BUILD
BCSC officials say the district has already implemented major austerity measures, including:
• Elimination of 49 positions for the 2026-27 school year
• Approximately $2.4 million in personnel reductions
• Nearly $1 million in operational savings
• Multi-year wage freezes
• Internal restructuring and efficiency measures
Despite those reductions, district leaders warned that additional support would be necessary to avoid placing an operating referendum on the 2026 ballot before the June 1 filing deadline.
At the same time, the Town of Brownsburg warned it is also facing significant financial challenges tied to SEA 1 property tax reforms.
Town officials project:
• $1.9 million in 2026 property tax revenue losses
• More than $3.2 million annually in future losses beginning in 2028
• Potential $20 million annual Local Income Tax (LIT) impacts beginning in 2029
Officials also noted nearly half of North Beltway TIF revenues are already committed to debt service and infrastructure obligations.
MAY 14: RDC & TOWN COUNCIL APPROVE CONDITIONAL SCHOOL FUNDING
During a special joint meeting on Thursday, May 14, 2026, at Brownsburg Town Hall, the Brownsburg Town Council and Redevelopment Commission approved Resolution #2026-07 and Resolution #2026-02RDC authorizing a proposed Educational Program Agreement with BCSC.
The agreement provides up to $800,000 in Redevelopment Commission funding for the 2026-2027 school year.
The funding supports:
• Brownsburg High School’s Project Lead the Way (PLTW) STEM curriculum
• Area 31 Career and technical education programs
• Student internship and workforce readiness programs
The funding source would come from Tax Increment Financing (TIF) revenues generated within the North Beltway Allocation Area.
However, the agreement included several critical conditions:
• Completion of a Town/BCSC Facility Use Agreement
• Financial participation from Brown and Lincoln Townships
• BCSC agreement not to pursue a 2026 referendum
The agreement also requires BCSC to:
• Submit detailed invoices and receipts before January 1, 2027
• Provide annual reporting on program outcomes
• Refund all funds if conditions are violated or programs are discontinued
The agreement remains effective through May 31, 2027.
MAY 19: TOWNSHIPS CONSIDER HOMELESS STUDENT TRANSPORTATION FUNDING
Five days later, on Tuesday, May 19, 2026, Brown Township and Lincoln Township held a special joint meeting at Brownsburg Fire Territory Station 131 to consider additional financial assistance for BCSC.
The townships reviewed resolutions authorizing a three-year interlocal cooperation agreement supporting transportation services for homeless and displaced students under the federal McKinney-Vento Homeless Assistance Act.
Under the proposal:
• Brown Township would contribute up to $100,000 annually
• Lincoln Township would contribute up to $100,000 annually
• Funding would begin in 2027 and continue for up to three years
• BCSC would remain responsible for costs exceeding township contributions
District officials said BCSC currently spends approximately $315,000 annually transporting 60 to 70 students experiencing homelessness or displacement.
The transportation services are required under federal law to ensure students can remain enrolled in their school of origin even when housing instability places them outside district boundaries.
The proposed agreement also created several safeguards for township taxpayers:
• Funding remains subject to annual board appropriations
• Townships may terminate participation if BCSC initiates a referendum
• BCSC may be required to repay funds if certifications are misrepresented
• A joint oversight board would monitor compliance and expenditures
OUTCOME: REFERENDUM TEMPORARILY AVOIDED
Together, the Town, RDC, and township agreements created a temporary bridge funding strategy that school officials say could avoid a referendum through at least 2028 if all conditions are satisfied.
Officials emphasized the agreements are temporary and largely intended to provide time for potential legislative relief during Indiana’s 2027 General Assembly session.
BCSC administrators cautioned that without meaningful changes to state education funding formulas or property tax laws, a future referendum may still become necessary in 2028.
The broader debate continues statewide as municipalities, schools, fire territories, and local governments attempt to balance rising operational costs with slowing property tax revenue growth under SEA 1 reforms.
Public officials from all participating entities stated they remain committed to continued negotiations and long-term financial planning in the months ahead.
Point / Counter Point
There are citizens who are opposed to the revenue sharing between the Town of Brownsburg, Brown and Lincoln townships and the schools. Their viewpoints follow:
Subject: BCSC Request for 1.3 Million Dollars from the Town of Brownsburg
The BCSC financial dilemma (caused by recent state statutes enacted) has now been effectively passed down to the Town of BB and the two townships to cover. The agreed compromise between all parties was for the Town to provide $800,000 from TIF revenues and for the two townships to provide $100,000 each, totaling $1 million.
These approved actions were for one year only.
But the BCSC has a deficit for three years, according to all their reports.
They, BCSC, have been very clear that if sufficient money was not provided to them for their deficit, they would be “forced” to turn to a tax referendum in the general election. That has been the “extortion with an apology” tactic that they have used to date in every meeting.
The result is that the Town and townships will be funding BCSC finances with dollars that are intended for Town and township purposes.
Specifically for the Town, it will be bonding payments and infrastructure dollars for current projects and those in the pipeline that total upwards of $50 million. So, some of the Town’s projects may be delayed or dropped as a result.
Same with the townships. Brown Township may need to actually reinstate a tax rate on the residents as a result.
This is what they did, and this is how it’s going to play out for the next three years.
Having attended every meeting of the RDC, TC, and townships held for this matter, it has become very clear to me that this is not a one-year fix and that BCSC will be coming back to the Town and townships again next year for the same or more funding.
Furthermore, if funding is not made available in 2027 or 2028, BCSC will be filing for a referendum in the 2028 general election.
So, this is really not about $1.3 million, or a compromise of $1 million. This is about $3 to $3.9 million.
This is not BCSC money; this is Town and township money. What projects and programs are going to suffer as a result of this action this year, and likely the same action the next two years?
The Town has also been negatively affected by recent state legislation as well.
The Town projects a $20 million deficit itself from reductions in future tax revenues.
Who is going to come to the Town’s rescue in this scenario?
There is no place to go to get extra financial help like BCSC is doing. BCSC can ask for as much as 15% of the TIF revenue.
Content courtesy of:
Article by The Editor
Brownsburg Community Schools Corporation – Community Engagement Series
Town of Brownsburg
Feb 04th – BCSC Community Engagement Meeting
May 14th – Joint RDC and Town Council Meeting
May 19th – Joint Lincoln Township and Brown Township Meeting
